IDFC First Bank Q2 FY27 Results Analysis: PAT Jumps 196.5%, GNPA Improves to 1.32% (IDFCFIRSTB)
IDFC First Bank Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 14,217.78 Cr (+20.20% YoY) and PAT growth of +196.50% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 24, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 14,217.78 Cr (+20.20% YoY) |
| PAT (Q2) | Rs. 1,044.60 Cr (+196.50% YoY) |
| EPS (Q2) | Rs. 1.21 (+236.10% YoY) |
| Market cap | Rs. 62,347.24 Cr |
| CMP | Rs. 72.30 |
Quarter Snapshot
IDFC First Bank delivered 20.20% YoY total income growth and 196.50% YoY PAT growth (base-effect aided), with GNPA improving to 1.32% and provisions down 21.69% YoY. Results are broadly on track against management's FY27 framework (ROA 0.93% vs ~1% target, top-line above the 18-18.5% band), but opex is running above its 13-14% guide, Q2 cost-to-income at 70.07% sits marginally above the sub-70% goal, and sequential PPOP/PAT were flat-to-down on a Rs.379.17 Cr Treasury swing. The pending equity leg of the up-to-Rs.20,000 Cr capital raise and a 96.29% CD ratio are the key watch items.
Key Investment Insights
Key Positives
- Total income grew 20.20% YoY to Rs.14,217.78 Cr, above the guided 18-18.5% top-line band
- NII grew 20.97% YoY to Rs.6,184.41 Cr
- PPOP grew 35.02% YoY to Rs.2,538.53 Cr
- PAT grew 196.50% YoY to Rs.1,044.60 Cr; H1 PAT Rs.2,119.56 Cr (+160.11% YoY)
- GNPA improved to 1.32% (from 1.51% QoQ, 1.86% YoY); NNPA at 0.40%
- Provisions fell 21.69% YoY to Rs.1,136.95 Cr
- Deposits grew 25.95% YoY, above the guided 18-21% band; advances grew 30.55% YoY
- Retail Banking segment result rose to Rs.1,013.27 Cr from Rs.622.70 Cr QoQ; Digital Banking profitable for a second straight quarter (Rs.112.03 Cr vs a Rs.84.79 Cr loss a year ago)
Risk Factors
- Opex grew 15.96% YoY, above the guided 13-14% band; H2 needs ~10-11% deceleration to meet the full-year guide
- Cost-to-income at 70.07%, marginally above the sub-70% FY27 guide
- PAT fell 2.82% QoQ and PPOP fell 0.55% QoQ; Treasury result collapsed to Rs.35.93 Cr from Rs.415.10 Cr in Q1 (Rs.379.17 Cr QoQ drag)
- CAR declined 38 bps QoQ to 14.67% as ~20% book growth outpaced internal accrual; equity leg of the up-to-Rs.20,000 Cr capital raise not yet announced
- CD ratio at 96.29% moved away from the stated mid-80s goal; borrowings grew 47.34% in H1 with FCNR(B) and offshore notes front-loading funding costs into H2
- Effective tax rate normalized to 25.47% from 17.73% a year ago, weighing on QoQ PAT optics
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.