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IDFC First Bank share price: Shares of private lender IDFC First Bank shed 2.5% on Sunday, February 1, following the announcement of its third quarter results for the financial year 2025-26 (FY26), even as the lender posted a 48% year-on-year (YoY) increase in its net profit.

IDFC First Bank share price fell to ₹81.42 apiece as against the previous close of ₹83.55.

The lender, on Saturday, reported a 48.05% year-on-year (YoY) surge in its net profit to ₹503 crore. The profit rose 42.64% quarter-on-quarter (QoQ).

The net interest income (NII) jumped to ₹5,492 crore in the third quarter of FY26 from ₹4,902 crore in the third quarter of the previous financial year.

Its net interest margin came in at 5.76%, down 28 bps YoY but higher than expectations. IDFC reported a beat on NIM and fees, lower MFI and non-MFI slippage, but higher opex in Q3FY26, said Nuvama Research.

NIM improved by 17bp QoQ to 5.76%, driven by a 12bp reduction in CoF, the brokerage noted, adding that it expects NIM in Q4 to improve to 5.85% from 5.76% QoQ.

Commenting on the IDFC First Bank Q3 results, V Vaidyanathan, MD and CEO, said, “We are seeing a strong business momentum across all our main lines of business, including lending, deposits, wealth management, transaction banking, etc. Our asset quality has improved with GNPA at 1.69% and Net NPA at 0.53% as of 31st December 2025. On the cost of funds, we expect it to further drop from here because of the recent revision in savings rates, which will enable us to expand our lending franchise.”

MFI slippage decreased 39% QoQ while non-MFI slippage fell 4%. MSME and mortgage reported an uptick in NPL. Overall, GNPL decreased from 1.86% to 1.69%.

Against this backdrop, Nuvama Research has a ‘HOLD’ rating on IDFC First Bank, with a target price of ₹80 on the stock. IDFC shall use the recent savings, it said.

IDFC First Bank has confirmed a bullish breakout from a seven-week cup and handle formation near 82, supported by above-average volumes that signal strong institutional participation, said Anshul Jain, Head of Research at Lakshmishree Investment.

“The stock is now consolidating around the breakout zone, indicating healthy absorption rather than profit-taking. Price structure remains constructive, with higher lows intact and short-term averages holding firm, reflecting improving trend strength across timeframes. This pause is building energy for the next leg higher, keeping risk–reward favorable as long as the stock sustains above the breakout area,” Jain opined.

A decisive continuation move post-consolidation can reopen momentum and set the stage for a retest of fresh all-time highs near the 100 mark, he said, adding that any failure to hold 82 would delay, but not structurally damage, the broader bullish setup.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.

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