IndusInd Bank Shares Plunge 6% Despite 72% Q1 Profit Jump as Brokerages Flag NIM Compression

IndusInd Bank shares fell 6% to ₹1,005.00 despite a 71.7% Q1 profit jump to ₹1,037 crore, as brokerages flagged net interest margin compression to 3.35% from 3.46%.

Net interest income grew only 1% to ₹4,685 crore, while non-interest income dropped to ₹1,787 crore from ₹2,157 crore, pulling net revenue down to ₹6,471 crore.

JPMorgan retained an 'Underweight' rating with a ₹820 target, citing that valuations already discount asset quality turnaround and recovery depends on core revenue, not lower provisions.

Asset quality improved: gross NPAs fell 18 bps to 3.25% and net NPAs improved to 0.95%.

Management reiterated a 1% RoA exit rate by FY27, expecting near-term margin pressure to persist into Q2 before recovering in H2 as microfinance and consumer lending re-accelerate.