Overview
- Shares have fallen into multiweek lows, extending a five-day losing streak to a 10% drop from early July highs.
- Q1 FY26 net profit rose 15.6% year-on-year to Rs 580.9 crore while net interest income increased 6.5% to Rs 2,044.6 crore.
- Gross NPA ratio climbed to 2.47% and net NPA ratio to 0.88% after fresh slippages of 3.8% of loans in credit cards, microfinance and southern mortgages.
- Management warned that the microfinance portfolio may not recover until Q4 FY26 and that credit card delinquencies are likely to remain elevated through Q2.
- Brokerages including Nuvama, Emkay and HDFC maintain ‘Reduce’ ratings with target prices from Rs 610 to Rs 725, and technical analysts see support at Rs 700–715 and resistance near Rs 770–790.