IDFC First Bank share price rises over 2% post Q2 results. Should you buy?

IDFC First Bank share price climbed over 2% during Monday's trading session following a remarkable 75.5% year-on-year increase in the bank's standalone net profit, which reached ₹352.31 crore in the second quarter of FY26. Despite this impressive growth in profit, the bank's net interest income saw a notable decrease of 40% YoY, dropping to ₹5,112.57 crore.

In its second-quarter financial results for FY26, IDFC Bank reported a year-on-year profit surge of 75.5%, with a standalone net profit of ₹352.31 crore, compared to ₹200.69 crore in Q2FY25. Additionally, the bank's net interest income (NII) saw an increase of 6.8% YoY.

As of September 30, 2025, customer deposits at IDFC Bank increased by 23.4% compared to the previous year, reaching ₹2,69,094 crore, up from ₹2,18,026 crore a year ago.

At the same time, CASA deposits surged by 26.8% year-on-year to ₹1,38,583 crore. The CASA ratio rose by 119 basis points to 50.07%, compared to 48.88% in the same quarter of the previous year. Additionally, the bank's cost of funds decreased by 23 basis points year-on-year to 6.23%.

Should you buy?

Nuvama Institutional Equities noted that IDFC experienced less strain on its MFI with a decrease in slippage and SMA in Q2FY26. The core non-MFI (excluding slippage from ATM service providers in Q1) increased by 7.8% quarter-on-quarter. Business growth continues to outpace competitors even though the MFI portfolio is shrinking, with a 6% quarter-on-quarter rise in loans and a 5% increase in deposits.

The net interest margin (NIM) fell by 12 basis points quarter-on-quarter, which is more than that of its peers as the bank has not reduced the savings account rate. The gross credit cost declined to 2.2% from 2.7% quarter-on-quarter.

“The bank guided that credit cost in H2FY26 would fall to 1.8% with an MFI recovery. SA rate cut looks unlikely as the bank prioritises LDR improvement over short-term gains. SA cost of 5.85% is cheaper than TD/borrowings. We are cutting earnings and maintain ‘HOLD’ with a target price of ₹68/1.2x BV FY26,” said the brokerage.

IDFC First Bank share price today

IDFC First Bank share price today opened at ₹72.78 apiece on the BSE, the stock touched an intraday high of ₹74.27 per share and an intraday low of ₹72.65 apiece.

Ruchit Jain, VP - Equity Technical Research, Motilal Oswal Financial Services Ltd, said that IDFC First Bank share price has recently given a breakout from it's consolidation phase post forming a base around it's 200 DEMA. The near term trend is positive and the stock could see a gradual unmoved towards ₹78 with immediate supports at ₹71 and ₹69.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.