IDFC first bank, weekly timeframe, cup and handle pattern, buy for target with strict stoploss as shown in chart.
IDFC First Bank stock is notable for rapid profit growth, expanding business fundamentals, and improving asset quality, but valuation remains expensive compared to peers. Here are the key points and fundamentals as of October 2025:
Financial and Business Highlights
Net profit for Q2 FY26 surged 75% YoY to ₹350 crore, indicating strong operational leverage and business growth.
Revenue up 11.7% YoY to ₹9,940 crore, driven by loan and deposit growth.
Loans and advances grew 19.7% YoY to ₹2,66,579 crore; customer deposits grew 23.4% YoY to ₹2,69,094 crore.
CASA ratio improved to 50.07%, up 119 basis points, supporting lower cost of funds.
Gross NPA at 1.86%, net NPA at 0.52%, reflecting stable asset quality.
Capital adequacy ratio stands at 14.11%.
Dividend payout ratio reached 12.00% (Rs 0.25 per share), first consistent dividend declaration in recent years.
Operating cash flow for Q2 hit ₹14,394.54 crore, highest in recent quarters.
Price-to-earnings (P/E) ratio is 42.99 and price-to-book (P/B) value is 1.63, indicating current valuation is on the expensive side.
Fundamental Ratios (latest available)
Metric Value
Net Profit (Q2 FY26) ₹350 crore
Revenue (Q2 FY26) ₹9,940 crore
Loans (Sep 2025) ₹2,66,579 crore
Deposits (Sep 2025) ₹2,69,094 crore
CASA Ratio 50.07%
Gross NPA 1.86%
Net NPA 0.52%
Capital Adequacy 14.11%
Dividend per Share ₹0.25
P/E Ratio 42.99
P/B Ratio 1.63
Operational and Strategic Notes
Strong deposit and loan growth trends over the past year, supported by expansion in microfinance (MFI) and retail segments.
Asset quality is stable across cycles, with MFI stress likely behind.
Improving operating leverage: cost-to-income improving, business growth outpacing operating expenses.
Merger with Capital First in 2018 strengthened retail banking and consumer finance footprint.
Management expects momentum to continue, with focus on cost efficiency and increasing fee-based income.
Risks and Weaknesses
Profit margin compression due to moderating net interest margin (NIM) and competitive funding costs.
Expensive valuation compared to sector average may limit upside in short term.
ROE and ROA are low relative to leading private banks (ROE around 7.87% last 3 years, ROA 0.47%).
Summary Table: IDFC First Bank Fundamentals
Aspect Data/Comments
Market Cap ~₹56,000 crore (approx.)
Stock Price ₹72–76 (Oct 2025)
P/E Ratio 43
P/B Ratio 1.63
Dividend Yield 0.25/share, ~12% payout
Gross NPA/Net NPA 1.86% / 0.52%
CASA Ratio 50.07%
IDFC First Bank is showing robust growth and stable fundamentals, but its valuations and profitability ratios suggest caution for new investors.
IDFC First Bank stock is notable for rapid profit growth, expanding business fundamentals, and improving asset quality, but valuation remains expensive compared to peers. Here are the key points and fundamentals as of October 2025:
Financial and Business Highlights
Net profit for Q2 FY26 surged 75% YoY to ₹350 crore, indicating strong operational leverage and business growth.
Revenue up 11.7% YoY to ₹9,940 crore, driven by loan and deposit growth.
Loans and advances grew 19.7% YoY to ₹2,66,579 crore; customer deposits grew 23.4% YoY to ₹2,69,094 crore.
CASA ratio improved to 50.07%, up 119 basis points, supporting lower cost of funds.
Gross NPA at 1.86%, net NPA at 0.52%, reflecting stable asset quality.
Capital adequacy ratio stands at 14.11%.
Dividend payout ratio reached 12.00% (Rs 0.25 per share), first consistent dividend declaration in recent years.
Operating cash flow for Q2 hit ₹14,394.54 crore, highest in recent quarters.
Price-to-earnings (P/E) ratio is 42.99 and price-to-book (P/B) value is 1.63, indicating current valuation is on the expensive side.
Fundamental Ratios (latest available)
Metric Value
Net Profit (Q2 FY26) ₹350 crore
Revenue (Q2 FY26) ₹9,940 crore
Loans (Sep 2025) ₹2,66,579 crore
Deposits (Sep 2025) ₹2,69,094 crore
CASA Ratio 50.07%
Gross NPA 1.86%
Net NPA 0.52%
Capital Adequacy 14.11%
Dividend per Share ₹0.25
P/E Ratio 42.99
P/B Ratio 1.63
Operational and Strategic Notes
Strong deposit and loan growth trends over the past year, supported by expansion in microfinance (MFI) and retail segments.
Asset quality is stable across cycles, with MFI stress likely behind.
Improving operating leverage: cost-to-income improving, business growth outpacing operating expenses.
Merger with Capital First in 2018 strengthened retail banking and consumer finance footprint.
Management expects momentum to continue, with focus on cost efficiency and increasing fee-based income.
Risks and Weaknesses
Profit margin compression due to moderating net interest margin (NIM) and competitive funding costs.
Expensive valuation compared to sector average may limit upside in short term.
ROE and ROA are low relative to leading private banks (ROE around 7.87% last 3 years, ROA 0.47%).
Summary Table: IDFC First Bank Fundamentals
Aspect Data/Comments
Market Cap ~₹56,000 crore (approx.)
Stock Price ₹72–76 (Oct 2025)
P/E Ratio 43
P/B Ratio 1.63
Dividend Yield 0.25/share, ~12% payout
Gross NPA/Net NPA 1.86% / 0.52%
CASA Ratio 50.07%
IDFC First Bank is showing robust growth and stable fundamentals, but its valuations and profitability ratios suggest caution for new investors.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.