IDFC First Bank (IDFCFIRSTB) Q4 25/26 earnings summary

Executive summary

• Loans and advances grew 20% year-over-year to INR 2.9 lakh crore, with strong traction across mortgages, vehicle, consumer, wholesale, and business banking loans, contributing 87% of growth.

• Credit card book crossed 4.5 million cards, growing 21% year-over-year; wealth management AUM rose 23% to INR 57,000 crore.

• Total deposits increased 17% year-over-year to INR 2.94 lakh crore, with CASA deposits up 24% YoY to INR 1.47 lakh crore and a CASA ratio of 49.8%.

• Asset quality improved: gross NPA fell to 1.61% and net NPA to 0.48% as of March 2026.

• Profit after tax for Q4 was INR 319 crore, impacted by a one-off fraud (INR 480 crore post-tax), trading loss, and a tax refund; normalized PAT was INR 746 crore, up 145% year-over-year.

Financial highlights

• NII grew 15.7% year-over-year in Q4, with NIM for Q4 at 5.93% and full-year NIM at 5.75%.

• Fee and other income grew 21.3% year-over-year in Q4.

• OpEx for Q4 was INR 6,249 crore (including fraud impact); adjusted OpEx was INR 5,603 crore, up 12.3% year-over-year.

• Provisions reduced 18% sequentially to INR 1,143 crore; credit cost for Q4 was 1.60%, improving 42 bps from Q3; full-year credit cost was 2.13%.

• Capital adequacy ratio stood at 15.60%, with CET1 at 13.70%.

Outlook and guidance

• Deposit growth expected to normalize and improve in Q1 FY27, with 5% QoQ growth targeted.

• NIM expected to remain stable around 5.75% for the next year.

• OpEx growth guidance maintained at 13%-14% for the next year, with Q1 expected to be slightly higher.

• Credit cost guidance for next year is 170-180 bps, benefiting from CGFMU cover for MFI.

• ROE expected to approach 1% by year-end, with further improvement anticipated as operating leverage increases and liability drag reduces.

• Cost-to-income ratio targeted to reduce to ~55% over the next 4-5 years, with further improvement as microfinance business normalizes.

• Continued focus on operating leverage and digital capabilities to drive profitability.

• Capital raise planned to support future growth.