IDFC First Bank (IDFCFIRSTB) Q1 25/26 earnings summary

Executive summary

• Balance sheet and customer deposits grew strongly year-over-year, with retail deposits now over 80% of total and retail deposits crossing INR 2 lakh crores.

• Expanded digital capabilities and branch network, reaching 35.3 million customers and 3.8 million credit cards.

• Maintained robust asset quality and risk management, with GNPA at 1.97% and NNPA at 0.55%.

• Microfinance business declined 37% year-over-year due to sector challenges, now 3.3% of assets, but collection efficiency improved to 99%.

• Unaudited financial results for Q1 FY26 were approved, with figures not fully comparable to prior periods due to amalgamation.

Financial highlights

• Net Interest Income grew 5.1% year-over-year to INR 4,933 crore; excluding microfinance, NII grew 11.8%.

• Standalone net profit for Q1 FY26 was ₹46,257 lakhs, up from ₹30,408 lakhs year-over-year; consolidated net profit was ₹45,347 lakhs.

• Operating profit including trading gains grew 19% year-over-year; core operating profit improved 7.8% sequentially.

• Profit after tax was INR 463 crores, up 52% sequentially but down 32% year-over-year, mainly due to microfinance and higher provisions.

• Total income rose to ₹11,86,897 lakhs (standalone) and ₹11,86,902 lakhs (consolidated) year-over-year.

Outlook and guidance

• Margins expected to recover by Q4 as deposit repricing benefits flow through; NIM guidance for Q4 is 5.8%.

• Credit cost guidance maintained at 2.0–2.05% for FY26, with improvement expected in H2.

• Cost-to-income ratio targeted to decline by Q4, with a medium-term target of 65% by FY27.

• Retail liabilities and credit card businesses moving towards break-even, expected to boost profitability.

• Bank continues to follow consistent accounting policies; figures for the quarter are not fully comparable due to amalgamation.