IndusInd Bank Q1 Preview: NII Drops, PAT May Slide Nearly 80% Amid Margin Compression; Advances Stay Weak

IndusInd Bank is scheduled to release its financial results for the quarter that ended on June 30, 2025, on Monday, July 28. With margin compression and higher provisions and non-performing assets weighing on performance, IndusInd Bank is anticipated to deliver a disappointing Q1FY26 result.

As per Gaurav Goel (Entrepreneur and SEBI-REGISTERED Investment Advisor), IndusInd Bank is expected to post a poor set of Q1 results this FY over the same quarter last year. Net profit is likely to fall by 60% and NII by 10%. Provisions are likely to go up by 30%. NIM is seen slightly higher at 3.4%. Gross NPA and net NPA are also likely to rise further.

IndusInd Bank Q1FY26 Earnings Preview By Yes Securities

As per Yes Securities, in spite of a sequential gain of 49.7%, IndusInd Bank is anticipated to record a lackluster performance for Q1FY26, with Net Interest Income (NII) estimated at Rs 4,564.8 crore, representing a steep year-on-year (YoY) fall of 15.6%. It is anticipated that the Pre-Provision Operating Profit (PPOP) will drop sharply to Rs 2,677.5 crore, a substantial 666.7% sequential decline and a 31.8% YoY drop. With a projected net profit (PAT) of Rs 432 crore, earnings pressure is evident as it represents a 79.9% YoY fall and a 119.3% QoQ drop.

Because of the previous quarter's particular one-offs and slower sequential growth, NII performance is predicted to stay poor.

Commenting on the Q1 results preview of IndusInd Bank, Yes Securities has highlighted that the bank's "Sequential loan growth will be in the 0.5% ballpark due to idiosyncratic growth trajectory. NII growth will be higher than average loan growth due to certain one-offs in 4QFY25. Consequently, NIM will be higher sequentially. Sequential fee income growth will be lower than loan growth. Opex growth would slightly lead business growth. Slippages would be lower on sequential basis. Provisions will be lower on sequential basis as the bank had created provision on additional MFI slippages in 4QFY25."

IndusInd Bank Q1FY26 Result Preview By InCred Equities - InCred Group

As per InCred Equities, IndusInd Bank is projected to report a mixed set of numbers for the first quarter of FY26. The expected net interest income (NII) is Rs 4,600 crore, representing a strong 51.8% sequential rise but a 14.4% year-on-year fall. It is anticipated that pre-provision operating profit (PPOP) will be Rs 3,000 crore, a 24.3% YoY drop.

As per InCred Equities, IndusInd Bank's net profit for Q1FY26 is estimated at Rs 1,100 crore, marking a sharp 49.9% decline from Rs 2,200 crore in Q1FY25. However, it reflects a strong recovery from the net loss of Rs 2,200 crore reported in the previous quarter (Q4FY25).

Although they will still be 80 basis points lower than they were the year before, margins are expected to expand sequentially by 120 basis points to 3.45%. Although credit costs are still high compared to 122 basis points in Q1FY25, they are anticipated to go down to 178 basis points from 272 bps in Q4FY25. It's anticipated that advances would slow somewhat to Rs 3.41 lakh crore, representing a 1.2% QoQ and 2% YoY drop.

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