Today, the private lender will reveal its Q3 earnings. Analysts are cautious about asset quality, especially in the unsecured retail and MFI groups, although they anticipate robust NII growth.
IDFC First Bank Q3 Results 2025:
On Saturday, January 25, IDFC First Bank is expected to make its December quarter results public. Analysts anticipate further stress for mid-sized private banks, such as IDFC First Bank, which have significant exposure to the unsecured retail and MFI segments. Still, they are cautious about asset quality and expect the bank to post good results.
Motilal Oswal predicts that net interest income (NII) would increase by 15.7% year over year (YoY) and 3.6% quarter over quarter (QoQ) to ₹4958 crore. To reach ₹2027 crore, operating profit is expected to increase 3.3% QoQ and 29.8% YoY. However, net profit is predicted to drop 30.1% yearly to ₹500 crore while increasing 149.3% QoQ.
With a target price of ₹64 per share, the brokerage keeps its rating on the company at ‘Neutral.” With operational profit rising 29% YoY and 3% QoQ to ₹2038 crore, Centrum Broking projects NII to expand by 17% YoY and 5% QoQ to ₹5001 crore. A net profit of ₹551 crore is anticipated, up 160% QoQ but down 25% YoY. With a target price of ₹58 per share, the firm has downgraded its recommendation to ‘Reduce.’
Although it has slowed quarter-over-quarter, Axis Securities observed that IDFC First Bank’s advances and deposit growth trend is still robust. NII growth is anticipated to continue to be strong, and margins will probably range from stable to slightly improving.
Nonetheless, the cost-to-income (C-I) ratio is anticipated to continue to be high, which may impede the rise of pre-provision operating profit (PPOP). It compensates for the stress in the MFI sector; credit costs are projected to remain high, and asset quality is predicted to decline slightly.
The brokerage identifies several important variables to monitor, including the prognosis for credit costs, overall company growth, asset quality, especially in the MFI category, and cost-to-income prediction.
The brokerage predicts that NII will rise 15.2% year over year and 3.1% quarter over quarter to ₹4,937 crore, while operating profit will increase 28.9% year over year and 2.6% quarter over quarter to ₹2,013 crore. Net profit is expected to drop 25.7% YoY to ₹532 crore, but it will rise 165% QoQ.
