IDFC First Bank Limited (IDFCFIRSTB)
Mid CapFinancial Services stocks · Mid cap · NSE
IDFC First Bank is a private sector bank in India, transitioning from a high-yield, high-credit-cost NBFC model to a diversified bank offering prime loans while retaining specialized lending capabilities. It is actively building its deposit franchise, digital capabilities, and expanding its product lines across retail, rural, MSME, and corporate segments.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 65/100Rev +15% YoY · PAT +153% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,051 Cr | +14.6% | +4.7% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹1,148 Cr | +153.4% | +246.8% |
| PAT margin | 10.4% | +569 bps | +725 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 PAT reported at Rs. 319 crores, significantly impacted by a Rs. 480 crores post-tax fraud incident and Rs. 118 crores post-tax treasury loss. Normalized PAT, excluding these and a tax refund, was Rs. 746 crores, up 145% YoY. Loan growth was healthy at 20% YoY, while deposits grew 16.8% YoY but were flat QoQ. Asset quality improved with GNPA at 1.61% and NNPA at 0.48%.
The bank demonstrated strong underlying operational performance in Q4 FY26, with robust loan growth and improving asset quality. However, the significant one-off fraud incident and flat sequential deposit growth raise concerns about short-term stability and the deposit franchise's resilience. Management is confident of a strong recovery in deposit growth and continued operational improvement, but the path to sustained higher ROA remains under scrutiny.
Diversified Lending Machine
PositiveThe bank's lending machine operates across 25 lines of businesses, with a book yield of 13%+ and credit costs less than 2%, providing a unique risk-adjusted yield.
MFI Book Recovery
PositiveMFI book decline has been arrested, with disbursements up 27% QoQ. Management expects the MFI book to grow by 15-20% next year.
Credit Card Business
PositiveCredit cards have crossed 4.5 million, and the book has grown strongly at about 22% on a Y-o-Y basis.
Corporate Banking Growth
PositiveAfter de-growing the book from ~Rs. 68,000 crores to ~Rs. 36,000 crores to clean out project financing, the corporate book is now on a growth path with no meaningful credit loss.
Branch Expansion
PositiveThe bank added about 80 branches in Q4 FY26.
Strong Customer Goodwill
PositiveDespite the fraud incident, the bank received significant customer support, with new account openings in March remaining strong, equal to previous months.
Improving Operating Leverage
PositiveManagement expects operating leverage to improve into the next year, with the top line growing faster than opex, contributing positively to ROA.
MFI CGFMU Cover
Positive89% of the MFI book is covered through CGFMU, which is expected to provide some benefit to credit cost in the next year.
One-off Fraud Incident
NegativeA fraud incident in Q4 resulted in claims of Rs. 646 crores principal, with a post-tax impact of Rs. 480 crores on PAT.
Treasury Loss
NegativeThe bank reported a trading loss of Rs. 159 crores (pre-tax) in Q4 due to widening G-Sec yields.
Tight Liquidity & Geopolitical Crisis
NegativeTight liquidity, advanced tax outflows, and the West Asia crisis impacted deposit flows during Q4, leading to modest 1% QoQ growth.
Deposit Growth Stability
NeutralDeposit growth was flat QoQ in Q4 due to rate reductions, a fraud incident, and tight liquidity, raising questions about sustained growth momentum.
Geopolitical Escalation
NeutralThe ongoing West Asia crisis is being monitored for potential escalation that could lead to material supply disruptions, impacting certain sectors.
Future Capital Requirement
NeutralManagement anticipates needing more capital by the end of the next year or starting the year after to support its growth trajectory.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth trends in loans and deposits, which are typically seasonal. QoQ comparison is vital for evaluating sequential momentum in asset quality metrics, NIM, and the immediate impact of one-off events like the fraud incident and MFI recovery.
Loans and Advances Growth
PositiveLoans and advances, including credit substitutes, grew by 20% on a Y-o-Y basis to Rs. 2.9 lakh crores.
MFI Loan Disbursements Growth
PositiveMFI loan disbursements were higher by almost 27% on a sequential basis.
Net Interest Margin (NIM)
StableQ4 NIM was 5.93% on an AUM basis. Full year FY26 NIM was 5.75%. Management expects NIM to be stable around 5.75% for the next year.
Cost of Funds
PositiveCost of funds came down to 6% in Q4, a reduction of over 50 basis points in the last year.
Normalized Profitability
PositiveManagement claims normalized Q4 PAT was Rs. 746 crores (excluding one-offs), translating to a 145% YoY increase.
Deposit Growth Outlook
PositiveManagement expects strong traction in deposit growth in Q1 FY27, aiming for a 'normal' 5% QoQ growth rate.
ROA Trajectory
PositiveManagement estimates the lending business ROA at 1.5-1.6% of loans, with the liability side drag expected to reduce from 1% to 0% in the next few years.
Long-term Profitability
PositiveManagement believes the bank will not stop at 1% ROA, as operating leverage will continue to improve for the next 4-5 years, leading to further PAT growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Deposit Growth (QoQ) | Flat in Q4 FY26 | Management's target of 5% QoQ growth in Q1 FY27 and subsequent quarters. |
| Net Interest Margin (NIM) | 5.75% for FY26 | Stability around the 5.75% level in FY27, as guided by management. |
| Credit Cost | 2.13% for FY26 | Reduction to the guided range of 170-180 basis points for FY27. |
| Liability Side Drag (ROA impact) | 1% in FY26 | Continued reduction towards 0% over the next few years, as per management's plan. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
78Bullishfull bull SMA stack · SMA20 +3.1% / mo · MACD − · near 52W high
Technical chart
IDFCFIRSTBdaily · 1Y · AUTO+23.2%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 58.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~3.0% over last month) — short-term momentum positive.
- RSI(14) at 58 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 16.2% above the 30-week proxy without full trend alignment.
- The 30-week proxy changed +0.3% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 23 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 23 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 16/25 to the score.
- Cash flow contributes 4/10 to the score.
- Balance sheet contributes 1/15 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -14.1%.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 32nd percentile of the scored universe and 49th percentile within Financial Services. Main check: financial discipline is weak at 28/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Altman Z is 1.77.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 49th pctile, median 62 · Mid: 17th pctile, median 76
125 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Altman Z is 1.77.
- ▸ROCE is low at 6%.
- ▸ROE is low at 3.8%.
- ▸Revenue CAGR is 21% but EPS CAGR is -13%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 32.40
- P/B
- 1.54
- EV/EBITDA
- —
- Market Cap
- 74759.00Cr
Profitability
- ROE
- 3.76%
- ROCE
- 5.98%
- ROA
- 0.58%
- Dividend Y
- 0.29%
Growth (CAGR)
- Revenue 5Y
- 20.00%
- EPS 5Y
- 28.00%
- Revenue 3Y
- 21.00%
- EPS 3Y
- -13.00%
Balance Sheet
- Debt/Equity
- 0.12
- Interest Coverage
- —
- Altman Z
- 1.77
- Book Value
- 56.20
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- 6817.00 Cr
- EPS TTM
- 2.74
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 93%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.