Indian Bank Earnings Summary — Q4 FY2026
Indian Bank Reports Record Quarterly Net Profit of ₹3,174 Crore with Multi-Year Asset Quality Improvements
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹18,095 Cr is 11.1% higher year-on-year.
- Revenue has compounded at 9.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹3,357 Cr is 47.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 18.4% annualised across the period.
- Operating margin stands at 67.1% in Q1 FY2027.
- Operating margin compressed by 289 bps year-on-year.
- Over the last two years operating margin has expanded by 35 bps.
- PBT margin is 24.3%.
- Expenses grew 21.8% against revenue growth of 11.1%.
- Operating profit of ₹12,149 Cr is 6.5% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 71/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 18,095 | 17,489 | 17,102 | 16,628 | 16,285 | 15,860 | 15,770 | 15,369 | 15,041 | 14,633 |
| Expenses | Stable | 5,946 | 5,811 | 5,493 | 5,108 | 4,880 | 5,097 | 5,102 | 5,144 | 4,994 | 5,378 |
| Operating Profit | Improving | 12,149 | 11,677 | 11,610 | 11,520 | 11,405 | 10,762 | 10,668 | 10,225 | 10,046 | 9,255 |
| Operating Margin | Stable | 67.1% | 66.8% | 67.9% | 69.3% | 70.0% | 67.9% | 67.7% | 66.5% | 66.8% | 63.3% |
| Other Income | Improving | 2,902 | 2,773 | 2,793 | 2,643 | 1,854 | 2,935 | 2,397 | 2,602 | 2,077 | 2,432 |
| Interest | Stable | 10,657 | 10,372 | 10,203 | 10,040 | 9,924 | 9,467 | 9,345 | 9,154 | 8,861 | 8,609 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 4,394 | 4,078 | 4,199 | 4,123 | 3,335 | 4,230 | 3,721 | 3,674 | 3,263 | 3,078 |
| Tax | Improving | 1,095 | 963 | 1,113 | 1,082 | 1,116 | 1,268 | 845 | 934 | 846 | 818 |
| Net Profit | Improving | 3,357 | 3,173 | 3,147 | 3,108 | 2,276 | 2,982 | 2,910 | 2,800 | 2,570 | 2,296 |
| Net Margin | Stable | 18.6% | 18.1% | 18.4% | 18.7% | 14.0% | 18.8% | 18.4% | 18.2% | 17.1% | 15.7% |
Key Takeaways
- Achieved a record high quarterly consolidated net profit of ₹3,174 crore in Q4 FY2026.
- Significant improvement in asset quality with Gross NPA falling below 2% (1.98%) for the first time in several years.
- Net NPA remained stable and healthy at 0.15%, indicating aggressive provisioning and clean balance sheet management.
- Total revenue scaled to ₹17,488 crore, driven by steady interest income despite a slight compression in financing margins.
- Financing margin moderated to 7% in the latest quarter from 8% in the previous quarter (QoQ).
- Operating expenses saw an uptick to ₹5,811 crore, representing a 5.8% increase quarter-on-quarter.
- Earnings Per Share (EPS) reached a high of ₹23.56 for the quarter.
- The bank maintains its trajectory as a high-ROE compounder, with annual ROE standing at roughly 15%.
Management Guidance
Management is focused on maintaining the bank's position as India's 7th largest Public Sector Bank by leveraging the Allahabad Bank merger synergies and shifting toward higher-yielding retail segments and non-interest income growth.
Sentiment Shift
Improving
The bank exhibits a strong transition from a stressed entity to a clean, high-ROE compounder with consistent improvements in NPA ratios and scaling profitability.
Outlook
The outlook remains optimistic as the bank demonstrates a cleaner balance sheet with Net NPAs at negligible levels. Future growth is expected from strategic agility in 'Other Income' and a focus on pan-India credit cycle participation.
From the Annual Report (Key Quotes)
“Indian Bank has demonstrated a significant turnaround and scaling following its amalgamation with Allahabad Bank.”
“The bank's financial trajectory shows a transition from a low-growth, asset-quality-stressed entity to a high-ROE compounder.”
“Improvement in asset quality is the primary driver, with Net NPA falling from over 1% to a negligible 0.15%.”
Official Quarterly Documents
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This summary is AI-generated from Indian Bank's latest quarterly filing and earnings call. For informational purposes only — not investment advice.