Bank Q4 Result Mixed Bag: IndusInd, IDFC First Rally 4%, Axis Bank Falls 4%: What Investors Must Know

Q4 Result Effect: Shares of Axis Bank, IDFC First Bank, and IndusInd Bank witnessed divergent movements as investors reacted to their fourth-quarter results for the financial year 2025-26. Several other banking stocks, including UCO Bank, also saw action following their earnings announcements.

Axis Bank share price was trading 3.54% lower during Monday's trading session, in contrast, IDFC First Bank stock was up around 3%, and IndusInd Bank was up close to 4% during the intraday trading session bag.

Axis Bank Q4 Result Review

Axis Bank reported strong core performance with improved provisioning buffer due to utilisation of tax reversals. The private lender also reported improvement in asset quality, noted Motilal Oswal in its report.

The loan book grew at a healthy rate of 18.5% YoY/6.4% QoQ, amid robust growth in corporate (up 10% QoQ) and steady growth in SME (up 5.6% QoQ) and retail (up 4.5% QoQ).

Axis Bank reported a marginal decline in its net profit to Rs 7,071 crore in the fourth quarter of financial year 2025-26. The private lender also reported a 5% year-on-year surge in its net interest income and announced dividend for FY26.

Axis Bank Share Price Recommendation

Motilal Oswal maintained a 'Neutral' rating for Axis Bank share price with a target price of Rs 1,475 per share. "We raise our FY27/28E earnings by ~4% each and estimate FY27E RoA/RoE at 1.6%/14.6%. Reiterate Neutral with a TP of INR1,475 (based on 1.7x Sep'27E ABV)."

IndusInd Bank Q4 Result Review

Lower provisions aided IndusInd Bank's Q4 earnings. The private lender's fourth quarter profit outpaced industry expectations, thanks to lower opex and provisions. IndusInd Bank reported a net profit of Rs 533 crore in the fourth quarter of financial year 2025-26 against Rs 2235.99 crore loss in the year ago period.

IndusInd Bank Share Price Recommendation

Motilal Oswal maintained a 'Buy' recommendation for IndusInd Bank stock with a target price of Rs 950 per share. "We raise our earnings and project IIB's RoA/RoE at 0.7%/5.6% for FY27E. Reiterate Neutral with a TP of INR950 (based on 1.1x Sep'27E ABV)."

IDFC First Bank Q4 Result Review

IDFC First Bank's net interest margins (NIMs) improved by 17 bps on a quarterly basis. As per Motilal Oswal report, IDFC First Bank's NIM stood above estimates, income declined amid flat fee income and treasury loss, business growth stood modest, and deposit growth stood flat at 16.8% YoY.

IDFC First Bank Share Price Recommendation

The brokerage gave a 'Neutral' rating for IDFC First Bank with a target price of Rs 75 per share. "We slightly lower our FY27/28E earnings by 1%/4% and estimate an RoA/RoE of 0.8%/7.6% for FY27. Reiterate Neutral with a TP of INR75 (premised on 1.2x Sep'27E ABV)."