Shares of IDFC First Bank jumped 3.5% to ₹88.34 after Motilal Oswal lifted its recommendation from neutral to buy, citing a 132% rise in Q1 net profit.
The lender posted a net profit of ₹1,075 crore in the July quarter, compared with ₹463 crore a year earlier, while its net interest income rose 21.1% to ₹5,972.3 crore from ₹4,933 crore. Advances and deposits grew at 21% and 26% CAGR over the past three years, and the cash deposit ratio fell from 108% to 94% in FY23.
Motilal’s note pushes the 2027 earnings lift to 4.1–6.8% despite near‑term NIM drag, thanks to FCNR mobilization projected to add 1.4%–4.4% to incremental NII and improved opex intensity. The brokerage raised its price target to ₹105 from ₹90, implying a 23% upside from current levels.
The bank has tightened internal controls and cut credit‑cost guidance, signalling a strengthening asset‑quality trend. Gross and net NPA ratios are expected to normalise to 1.4% and 0.4% by FY28, down from 1.51% and 0.44% at quarter‑end FY27.
Of the 31 analysts covering the stock, 22 hold a buy rating, seven a hold and two a sell, and the shares have been up 3.5% year‑to‑date, marking a positive trend for the private lender.
The next earnings call will be on October 15, when the bank is likely to disclose its FY27 guidance. Investors will be watching whether the projected earnings lift materialises against the backdrop of tightening monetary policy and a volatile credit market.