Federal Bank stock fell 2.25 percent while Q1 profit climbed 36.6 percent

Published on 10/07/2026 at 01:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Motilal Oswal maintained a Buy rating and an INR 400 target on July 17, 2026. The NSE quote was INR 320 on October 6, with market capitalization at INR 789.5 billion.

Federal Bank, INE171A01029, Illustration mit AI erstellt.

Federal Bank (ISIN INE171A01029) was last at INR 320 on the NSE on October 6, 2026 at 3:15 p.m. IST, down 2.25 percent from the previous close. The move contrasts with Q1 FY27 net profit growth of 36.6 percent, keeping earnings quality and valuation at the center of the stock discussion.

Q1 profit rose 36.6 percent

For the quarter ended June 30, 2026, Federal Bank reported net profit of INR 1,177 crore, up 36.6 percent year over year. Net interest income increased 26.1 percent to INR 2,946 crore, while net interest margin reached 3.33 percent, according to DSIJ in its July 19, 2026 review.

The same review reported gross advances of INR 2,78,466 crore, an increase of 13.4 percent year over year, while deposits rose 11.4 percent to INR 3,20,118 crore. Provisions declined 20.6 percent year over year to INR 318 crore, and net non-performing assets stood at 0.18 percent in Q1 FY27.

Analyst targets split at INR 332 and INR 400

DSIJ reported on July 17, 2026 that Motilal Oswal maintained a Buy rating and an INR 400 target. The target lies 25 percent above the October 6 price of INR 320.

ICICI Securities took a more cautious position in a July 19, 2026 update, retaining Hold with an INR 332 target, according to DSIJ. That target lies 3.75 percent above the latest NSE price. The report identified limited residual benefit from deposit repricing and credit-cost sensitivity as key issues for the outlook.

NSE price sits below yearly high

Federal Bank stock traded between INR 319.25 and INR 329.55 on October 6, 2026, with volume of 4,338,030 shares. Its 52-week range was INR 194.10 to INR 371.70, placing the latest price 13.9 percent below the yearly high, while market capitalization stood at INR 789.5 billion.

The combination of higher Q1 profit, expanding net interest income and a 3.33 percent margin gives the stock a measurable earnings base. The contrasting INR 332 and INR 400 targets show how much the valuation depends on the durability of margin gains and the bank's ability to sustain loan growth.