ICICI Bank shares surge on strong March quarter results
What's the story
ICICI Bank's shares rose by 1.6% to ₹1,368 in early trade today, following the bank's March quarter earnings that surpassed market expectations. The rise comes after a 0.5% increase in the previous session ahead of the results announcement. The bank reported an 8.5% year-on-year increase in net profit for Q4FY26 at ₹13,701.7 crore, beating Street estimates of ₹12,949 crore.
Financial growth
NII exceeds expectations as asset quality improves
ICICI Bank's net interest income (NII), a key indicator of core earnings, also exceeded expectations. It grew by 8.4% to ₹22,979.2 crore for the quarter under review. The bank's asset quality improved sequentially with the net NPA ratio falling to 0.33% from 0.37% and gross NPA dropping to 1.4% from 1.53%. Provisions fell sharply aiding profitability as advances rose by 15.8% year-on-year and 6% sequentially to ₹15.53 lakh crore while NIM remained stable at 4.32%.
Market outlook
Target prices from brokerages range from ₹1,600 to ₹1,800/share
Brokerages have attributed the earnings beat to lower credit costs and steady growth momentum. Most analysts are bullish on ICICI Bank shares with target prices ranging from ₹1,600 to ₹1,800 per share. Citi has a 'Buy' rating on the stock with a target price of ₹1,720/share while CLSA has an 'Outperform' rating with a target price of ₹1,700/share.
Future projections
Nomura has a 'Buy' rating with target price of ₹1,620/share
Nomura has a 'Buy' rating with a target price of ₹1,620/share. It expects loan growth to re-accelerate. Jefferies also maintains a 'Buy' rating with a target price of ₹1,670/share and predicts earnings growth will remain steady with 13% CAGR in profit before tax over FY26-29. Kotak Institutional Equities has a 'Buy' rating on the stock with a target price of ₹1,800/share while Morgan Stanley holds an 'Overweight' rating with a target price of ₹1,705/share.