IDFC First Bank (IDFCFIRSTB) Q2 25/26 earnings summary

Executive summary

• Customer deposits grew 23.4% YoY to INR 2.69 lakh crore, with retail deposits up 21.4% YoY and CASA deposits up 26.8% end-of-period and 32% on average basis.

• Loans and advances increased 19.7% YoY to INR 2.67 lakh crore, with strong growth in mortgages, vehicle loans, business banking, and wholesale loans; microfinance portfolio declined to INR 7,300 crore.

• Profit after tax for Q2 was INR 352 crore; H1 FY26 net profit grew 75% YoY, but Q2 profit declined 23.8% QoQ due to lower trading gains.

• Built a universal bank with a full suite of products, robust digital platforms, and a strong brand presence, expanding branch network 5x to 1,041 branches and establishing a presence at GIFT City.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board and reviewed by joint statutory auditors, with unmodified conclusions issued.

Financial highlights

• Loans & Advances reached ₹2,66,579 Cr (20% YoY, 5% QoQ); Customer Deposits at ₹2,69,094 Cr (23% YoY, 5% QoQ).

• Net Interest Margin (Q2 FY26) at 5.59% (-59 bps YoY); CASA ratio at 50.1% (+119 bps YoY).

• Standalone net profit for Q2 FY26 was ₹35,231 lakh, up from ₹20,069 lakh in Q2 FY25; H1 FY26 net profit was ₹81,488 lakh.

• Wealth management AUM grew 28% YoY to INR 55,000 crore.

• Cost to Income ratio at 70.9% in H1 FY26; Opex growth at 11.8% YoY, below business growth.

Outlook and guidance

• Margins expected to improve in Q3 and Q4, with Q4 NIM guided above 5.8%, assuming another repo cut.

• Credit cost guidance maintained at 2.05%-2.1% for FY26, with H2 expected to be lower at 1.6%-1.8%.

• NII expected to increase in H2 FY26 as deposit rate reductions flow through.

• Cost to Income ratio targeted to improve to ~65% by FY27, driven by scale and digital leverage.

• Board approved significant capital raising through preferential allotment and conversion of CCPS, strengthening the capital base.