Macquarie has maintained its ‘Outperform’ rating on IndusInd Bank with a target price of ₹1,210, while acknowledging the weak Q4FY25 print marked by a large earnings miss and elevated provisions. The brokerage believes the current valuation — at 5x trailing PPOP and 0.9x FY25 P/B — leaves some margin of safety, but emphasizes the need for clarity on leadership and risk controls.
IndusInd Bank reported a net loss of ₹2,328.9 crore, compared to a profit of ₹2,349.1 crore a year earlier. Net interest income (NII) declined 43.3% YoY to ₹3,048.3 crore, while provisions surged to ₹2,522.1 crore. Asset quality also weakened, with gross NPA rising to ₹11,046 crore and the gross NPA ratio climbing to 3.13% from 2.25% in Q3.
Macquarie adjusted for the numerous one-offs and said normalised PPOP stood at ₹3,000 crore. Still, unresolved concerns around management succession, NIM sustainability, governance issues, and credit costs remain key monitorables.
Disclaimer: This article is based on the brokerage report by Macquarie. It does not constitute investment advice.
