Jefferies has maintained a Buy rating on IDFC First Bank with a target price of ₹82, indicating a potential upside of approximately 16% from the current market price of ₹70.63.
The bank reported a Q1FY26 profit of ₹4.6 billion, which came in slightly below Jefferies’ estimates due to higher credit costs. However, the brokerage highlighted three key positives from the result:
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The special mention accounts (SMA) book of the microfinance segment almost halved quarter-on-quarter, which could lead to lower slippages and credit costs going forward.
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Other lending segments witnessed slightly higher slippages.
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A slower reduction in savings bank interest rates is likely to delay the expected margin expansion.
Disclaimer: This article is based on Jefferies’ brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
