IndusInd Bank Limited

Financial Services — Banks - Regional · NSE

₹877.00−₹8.40 (−0.95%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of IndusInd Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

IndusInd Bank Limited provides various banking products and financial services to individuals, corporations, government entities, and public sector undertakings in India.

IndustryBanks - Regional

SectorFinancial Services

Employees46,778

Annual revenue₹25,128 Cr

How does it make money?

Turns over ₹25,128 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit. Each of its 46,778 employees supports ₹53.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹53.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

24 analysts covering the stock expect revenue to grow about 16.4% and earnings to grow about 41.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.4%

Est. earnings growth+41.5%

Analysts24

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -1% while net margin moved -88% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-1%

Margin effect-88%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.4% a year
✗ Profit has declined at 50.7% a year

Quality vs. Valuation

Company Quality

43/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

31/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

51.9x

3Y Median

15.8x

40 monthly readings · mean 23.1x · range 5.6x–89.1x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 228% above its 3y median of 15.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 205% above the peer median of 17.0x.

vs. its own history

Expensive

15.8x median over 40 months · +228%

vs. sector peers

Expensive

17.0x median of 4 peers · +205%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 13.5% to 1.4% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 88% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 228% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 13.5% to 1.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 8%✗ 1.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Valuation vs its own median of 15.8x✗ 51.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹68,331 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

51.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹16.91

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

1.0%

Modest

Modest growth

Profit Growth (YoY)

71.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.17%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹301 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

11.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

27.3%

Good

Healthy core-business profitability

Net Margin

7.6%

Average

Average bottom-line conversion

Beta (vs Nifty)

0.54

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

899.8 / 961.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹25,468 Cr	₹29,465 Cr	₹26,497 Cr	₹25,128 Cr	-0.4%
PAT (Net Profit)	₹7,443 Cr	₹8,977 Cr	₹2,576 Cr	₹889 Cr	-50.7%
EPS	₹95.89	₹115.33	₹33.05	₹11.41	-50.8%
ROE	13.5%	14.2%	4.0%	1.4%	—
Total Debt	₹49,011 Cr	₹47,611 Cr	₹53,704 Cr	₹42,789 Cr	-4.4%
Free Cash Flow	-₹13,013 Cr	-₹17,655 Cr	₹17,547 Cr	₹301 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.4% a year).

🔴 PAT (Net Profit) has shrunk at 50.7% a year over 3 years.

🔴 EPS has shrunk at 50.8% a year over 3 years.

🔴 ROE has fallen from 13.5% to 1.4% over 3 years (-12.2 pts).

🟢 Total Debt has shrunk at 4.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹13,013 Cr to ₹301 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5.43 L Cr

Total Liabilities

₹4.78 L Cr

Cash & Equivalents

₹63,909 Cr

Operating Cash Flow

₹993 Cr

Capex

-₹692 Cr

Shareholding (proxy)

Institutional Holding

54.7%

Insider Holding

16.3%

Corporate Actions

Next Earnings

23 Oct 2026

Dividend Rate

₹1.5

Ex-Dividend Date

25 Jun 2026

Analyst Consensus

Recommendations

9 Buy · 15 Hold · 13 Sell

Target Price (Mean)

₹992.59

+13.2% vs CMP

Target Range

₹760 – ₹1,250

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

5 mixed1 general

IndusInd Bank meets investors at UBS Asian Investment Conference

scanx.trade, 13 Oct

IndusInd Bank Eases Marginally as INDUSINDBK Consolidates Near ₹862 - Pre-Earnings Momentum

https://www.siam.in/, 09 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

IndusInd Bank falls 6% post Q1; analysts stay bullish, see up to 13% upside

Business Standard, 23 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

IndusInd Bank Share Price Fall Streak and Valuation Check

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

KMB, Axis Bank, IndusInd Bank shares gain up to 4%, IDFC First Bank falls 3%; here's why

Business Today, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

IndusInd Bank stock crashes 5% as brokerages stay cautious over weak NIM, fee income despite Q1 beat

Moneycontrol.com, 23 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

2 of 2 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 15.8x · see Key things to watch ↑