Q2 FY27 results analysis · October 25, 2026

IDFC First Bank Q2 FY27 Results Analysis: PAT Jumps 196.5%, GNPA Improves to 1.32% (IDFCFIRSTB)

+196.5%PAT year on year, Rs. 1,044.60 Cr
Cofacto ResearchPublished October 25, 20262 min readPositive read
Quick summary

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.

Quick Details
Results dateOctober 24, 2026
QuarterQ2 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 capRs. 62,347.24 Cr
CMPRs. 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.