IDFC First Bank Q3 results 2025: IDFC First Bank is scheduled to announce its December quarter performance on Saturday, January 25. Analysts expect the bank to report a healthy set of numbers on a QoQ basis but foresee weak performance on a YoY basis. They remain cautious about asset quality, anticipating continued stress for mid-sized private banks, including IDFC First Bank, which have significant exposure to unsecured retail and MFI segments.
Q3FY25 results preview
Motilal Oswal anticipates a 15.7% year-on-year (YoY) and 3.6% quarter-on-quarter (QoQ) rise in net interest income (NII) to ₹4958 crore. Operating profit is projected to grow 29.8% YoY and 3.3% QoQ to ₹2027 crore. However, net profit is expected to increase 149.3% QoQ while showing a YoY decline of 30.1% to ₹500 crore.
The brokerage maintains a ‘Neutral’ rating on the stock with a target price of ₹64 per share.
Centrum Broking expects NII to grow by 17% YoY and 5% QoQ to ₹5001 crore, with operating profit increasing 29% YoY and 3% QoQ to ₹2038 crore. Net profit is projected to rise 160% QoQ but decline 25% YoY to ₹551 crore. The brokerage has a ‘Reduce’ rating on the stock with a target price of ₹58 per share.
Axis Securities noted that the advances and deposit growth momentum for IDFC First Bank remains healthy, though it has slowed on a quarter-on-quarter basis. NII growth is expected to stay robust, with margins likely ranging from steady to showing marginal improvement.
However, the cost-to-income (C-I) ratio is projected to remain elevated, which could dampen pre-provision operating profit (PPOP) growth. Credit costs are anticipated to stay high to account for stress in the MFI segment, with asset quality expected to witness slight deterioration.
The brokerage lists some key factors to monitor, including the cost-to-income outlook, overall business growth, and asset quality, particularly within the MFI segment, along with the outlook on credit costs.
The brokerage forecasts a 15.2% YoY and 3.1% QoQ jump in NII to ₹4,937 crore, with operating profit expected to grow 28.9% YoY and 2.6% QoQ to ₹2,013 crore. Net profit is anticipated to increase 165% QoQ but decrease 25.7% YoY to ₹532 crore.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
