Emkay raises Federal Bank target from INR 400 to INR 420 for Federal Bank stock

Published on 10/20/2026 at 03:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Federal Bank earned INR 13.86 billion in Q2 FY27, up 45.10 percent year over year. Federal Bank stock has a INR 420 target as NIM reached 3.32 percent.

Target and earnings context

Emkay Global Financial lifted its Federal Bank target to INR 420 on October 19, 2026.
Federal Bank reported INR 13.86 billion in net profit for the second quarter of fiscal 2027.
Federal Bank's market capitalization stood at INR 861.0 billion as of October 19, 2026.

Federal Bank, INE171A01029, Illustration mit AI erstellt.

Federal Bank (ISIN INE171A01029) became the subject of a higher analyst target after Emkay Global Financial lifted its target from INR 400 to INR 420 on October 19, 2026, according to TradingView. The report retained a Buy rating and cited stronger earnings, loan growth and improving asset quality.

Target rises after record earnings

The latest target followed Federal Bank's second-quarter fiscal 2027 results, released on October 16, 2026. Business Standard reported net profit of INR 13.86 billion, up 45.10 percent year over year, while net interest income increased 26.40 percent to INR 31.53 billion.

The earnings profile gives the revised target a clear operating basis. Net interest margin reached 3.32 percent in the second quarter, up 26 basis points year over year, while gross non-performing assets fell to 1.32 percent from 1.52 percent in the preceding quarter. Deposits grew 18.60 percent to INR 3.43 trillion and gross advances reached INR 3.02 trillion.

What supports the higher target?

Emkay pointed to 22.00 percent loan growth and reiterated management's expectation of 5 to 6 basis points of average quarterly net interest margin improvement, although the path is not linear. The bank also maintained mid-teens loan growth guidance, according to the TradingView report carrying the research note.

Three dated Federal Bank milestones

On October 4, 2026, Motilal Oswal named Federal Bank its preferred mid-size private-sector bank pick with an INR 400 target, as reported by ET Now. On October 16, 2026, the bank reported INR 13.86 billion in second-quarter profit through its results coverage. On October 19, 2026, Emkay raised its target from INR 400 to INR 420 in the report carried by TradingView.

Key dates for the earnings cycle

September 30, 2026 marked the end of the reported quarter, and October 16, 2026 marked the publication of the second-quarter results. The next dated milestone in this cycle was the October 19, 2026 analyst update that lifted the target.

Market value and investor context

Federal Bank's NSE quote was INR 338.00 on October 16, 2026. Its market capitalization stood at INR 861.0 billion as of October 19, 2026, while the same market-data snapshot placed the 52-week range at INR 172.95 to INR 364.95. The stock therefore remained below the upper end of its reported annual range as the earnings and analyst updates reset the valuation discussion.