Induslnd Q3FY26 Results: IndusInd Bank reported a net profit of Rs 128 crore for the December quarter (Q3FY26), swinging back into the black from a loss of Rs 437 crore in the September quarter, even as earnings remained sharply lower than the Rs 1,402.35 crore profit posted in the year-ago period. The results were announced after market hours on Friday.
Sequential recovery, but year-on-year pressure remains
The return to profitability marks a notable sequential improvement for the private sector lender after a volatile first half of the financial year.
Net interest income (NII) for the quarter came in at Rs 4,562 crore, higher than Rs 4,409 crore in Q2FY26, supported by an improvement in margins. On a year-on-year basis, however, NII declined from Rs 5,228 crore in Q3FY25, reflecting the impact of balance-sheet stress and tighter liquidity conditions over the past few quarters.
Margins show signs of stabilisation
The bank’s net interest margin (NIM) improved to 3.52 per cent in Q3FY26, compared with 3.32 per cent in the previous quarter. The sequential expansion in margins suggests some easing in funding costs and better yield management, which played a key role in lifting profitability during the quarter.
Cost control supports bottom line
Operating discipline also aided the recovery. Total expenditure declined to Rs 10,810 crore during the quarter, compared with Rs 11,555 crore in the corresponding quarter last year. Lower costs helped cushion the impact of weaker year-on-year income and supported the bank’s return to profit.
Stock closes lower
Shares of IndusInd Bank closed 0.49 per cent lower at Rs 898 on the NSE on Friday, ahead of the post-market earnings announcement. The muted stock reaction reflected investor caution around the pace and sustainability of the bank’s recovery.
What to watch going ahead
Going forward, analysts and investors will closely track the bank’s ability to sustain margin improvement, strengthen asset quality and deliver consistent earnings growth. While the December-quarter performance signals stabilisation, a full turnaround will depend on steady execution in the coming quarters.
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