INDUSINDBK's Q2 FY27 numbers came in strong. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 23, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 14,043.91 Cr (+5.91% YoY) |
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| PAT (Q2) | Rs. 1,241.79 Cr |
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| EPS (Q2) | Rs. 15.94 |
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| Market cap | Rs. 65,058.58 Cr |
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| CMP | Rs. 835.00 |
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Quarter Snapshot
IndusInd Bank delivered a clean quarter with PAT of Rs.1,241.79 cr (vs a Rs.436.88 cr loss a year ago), PPOP up 40.40% YoY, and provisions down 53.53% YoY — both levers of management's guided ROA bridge firing, with Q2 ROA at 0.87% tracking the 1% Q4FY27 exit target. Asset quality improved sharply (GNPA 2.73%, NNPA 0.83%) while advances re-accelerated 11.29% QoQ. Watch items are the QoQ NII dip of 2.46% (guided Q2 NIM pressure that must reverse in H2), borrowings-led funding growth, and PCR drift to 70.19%.
Key Investment Insights
Key Positives
- Consolidated PAT of Rs.1,241.79 cr vs a loss of Rs.436.88 cr in Q2FY26; up 19.74% QoQ and +50.68% over Q1 normalized PAT of Rs.824.35 cr
- PPOP grew 40.40% YoY to Rs.2,874.45 cr; PPOP/total income at 20.47% vs 15.44% a year ago
- Provisions fell 53.53% YoY and 11.68% QoQ to Rs.1,222.63 cr — third consecutive quarterly decline; provisions/PPOP at 42.53% vs 128.52% year-ago
- GNPA improved to 2.73% (from 3.25% QoQ, 3.60% YoY); NNPA at 0.83% vs 0.95% QoQ and 1.04% YoY
- Advances grew 11.42% YoY and 11.29% QoQ; deposits grew 10.07% YoY and 3.39% QoQ
- Cost-to-income improved to 28.08% from 30.27% a year ago; opex fell 1.75% YoY against 5.91% income growth
- Other income grew 36.13% YoY and 25.83% QoQ to Rs.2,247.93 cr
- Q2 ROA of 0.87% (vs 0.78% Q1) tracking toward management's guided 1% exit ROA by Q4FY27; quarter had no exceptional or extraordinary items
Risk Factors
- NII declined 2.46% QoQ as interest expended rose 9.09% QoQ against 4.29% QoQ interest earned
- Borrowings grew 18.59% YoY vs deposits at 10.07%; CD ratio at 84.67% vs 83.64% a year ago — growth is being wholesale-funded
- Implied PCR eased to 70.19% from 71.42% in Q1FY27
- CRAR declined to 16.59% from 17.15% QoQ and CET1 to 15.55% from 16.10%
- Retail Banking revenue still down 7.54% YoY and Digital Banking revenue down 21.46% YoY on the microfinance de-growth base
- Advances growth of 11.42% YoY runs below the 13-14% market growth assumption management anchors to