ICICI Bank Shares Volatile Despite Strong Q2; 5 Brokers Recommend BUY, Upgrades Target; 36% Upside Seen

ICICI Bank share price witnessed a roller coaster ride despite reporting strong Q2FY27 earnings. In the early trade of Monday, the stock reacted strongly and surged past the Rs 1,400 mark before correcting to enter the red zone due to broad-based market selloffs. In Q2, ICICI Bank surpassed street estimates across profitability, NII, provisions and asset quality. Despite the latest selloffs, brokerages are bullish on ICICI Bank due to its strong growth outlook in Q3 and Q4. Accordingly, there is a buy-on-dips opportunity in ICICI Bank with a potential upside of 36% ahead.

ICICI Bank Share Price

At the time of writing, ICICI Bank stock traded at Rs 1386 apiece on BSE, down by 0.8% with market cap of Rs 9,95,133.01 crore. The stock opened at Rs 1,408.90 apiece and touched an intraday high of Rs 1,412.00 apiece in the early bell of Monday, which was also couple of rupees away from 52-week high of Rs 1,479.90 apiece.

However, at the moment, ICICI Bank is in red and near its day's low of Rs 1,379.10 apiece. Overall, the Indian stock market sentiment has turned bearish, which weighed on ICICI Bank as well.

During Q2FY27, ICICI Bank posted a 20.1% YoY growth in standalone net profit to Rs 14,843 crore, driven by strong loan growth and decline in provisions and contingencies for bad loans. Its net interest income (NII) climbed by 17.7% YoY to Rs 25,339 crore in the quarter under review. However, net interest margins dropped to 4.18% in Q2FY27 versus 4.30% in Q2FY26 and 4.36% in Q1FY27.

Meanwhile, the bank's provisions dropped to Rs 850.69 crore in Q2FY27 compared to Rs 914.11 crore in the same quarter last year. In terms of asset quality, gross NPA stood at 1.20%, declining from 1.58% in Q2FY26 and 1.38% in Q1FY27.

Additionally, ICICI Bank reported 30% YoY growth in advances to Rs 18.32 lakh crore, while its deposits grew 27.1% YoY to Rs 20.50 lakh crore.

"ICICIB continues to distinguish itself from its peers through its consistent execution capability, underpinned by well-diversified growth, superior asset quality performance, resilient and well-managed margin delivery, and robust operating efficiency. Q2 was another such quarter, reflecting strong underlying business momentum, robust core earnings growth, and pristine asset quality," said analysts at Axis Securities in their review note.

Also, the analysts pointed out that ICICI Bank continues to demonstrate its ability to outperform peers even during periods of heightened uncertainty, reinforcing the strength of its franchise and execution capabilities.

Should You BUY ICICI Bank Shares?

Analysts at Axis Sec believe ICICI Bank continues to deserve its premium valuations vs peers, and remains our preferred pick amongst the large private banks. Hence, they recommended BUY and raised target price to Rs 1,865.

However, analysts at Emkay Global believe that ICICI Bank's margins are expected to remain under pressure in 3QFY27 as FCNR(B) balances flow through the average balance sheet, with a gradual recovery anticipated from 4QFY27 as surplus liquidity is deployed.

Nonetheless, Emkay's note said,"With FCNR-induced credit growth of 30%, we increase our loan growth assumptions for FY27 to 30%, thereby increasing our earnings by 1-11% over FY27-29E. Hence, we retain BUY on the stock and TP of Rs1,785, based on 2.6x Sep-28E ABV and subsidiaries' value at Rs300/sh."

Meanwhile, global brokerage Jefferies said, "We raise estimates for FY27-29 by 5-6%. We expect bank to deliver 16% Cagr in core profits over FY26-29, ROE of 17% in FY28 and valuations at 2x FY28E adjusted PB and 12x PE reflect deserved premium over peers. ICICI stays among our top picks, and we maintain our Buy call with SOTP-based PT to Rs1,750 based on 2.2x Dex-28E adj PB. Our ADR PT is at $38."

Jefferies added, ICICI's profit of Rs148 billion, up 20% YoY, was ahead of estimates with better NII & lower credit cost. While core NIMs fell by 10bps QoQ to 4.2%, reallocation of FCNR-B funds & repricing of loans with rate hikes will aid NIMs. Asset quality is strong & lower credit cost aided profits.

Furthermore, analysts at JM Financial said, "ICICI Bank continues to deliver sector-leading loan growth, healthy fee traction and best-in-class asset quality, while near-term NIM pressure from FCNR(B) should ease as surplus liquidity is deployed from Q4FY27. We are slightly tweaking EPS estimates for FY27/28 and maintain BUY with a TP of INR 1,710, valuing the bank at 2.4x FY28E core P/BV."

The highest target on ICICI Bank is however assigned by PL Capital. Analysts here said, "NIM may improve from Q4FY27 led by repo hike and liquidity utilization. Despite being NIM dilutive, ICICIBC garnered sizable FCNR money, gaining a strategic advantage, as substantial fixed-rate funding was mobilized to support future growth amid a rate hike cycle. Due to better loan growth, we raise core PAT for FY27/28E by avg. 5%."

Accordingly, PL's analysts tweak multiple to 2.6 from 2.7x but raise TP to Rs 1,900 from Rs ,850 on ICICI Bank as they roll forward to Sep'28 core ABV. Reiterate 'BUY'.

The highest potential upside is likely by 36% ahead in ICICI Bank taking into consideration the Rs 1,900 target price and the lender's previous session's closing price of Rs 1,396.80 apiece.

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