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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Shares of IDFC First Bank rallied as much as 9% to Rs 88 on the BSE on Monday after the lender reported its highest-ever quarterly profit after tax (PAT) of Rs 1,075 crore for the quarter ended June 30, 2026. The profit jumped 132.4% year-on-year (YoY) from Rs 463 crore in the corresponding quarter last year.

The bank, however, disclosed that it received claims worth Rs 514.8 crore under the CGFMU scheme against its MFI portfolio during the quarter.

Net interest income (NII) rose 21.1% YoY to Rs 5,972.3 crore from Rs 4,933 crore a year earlier. The bank’s net interest margin (NIM) also improved to 5.96% in Q1 FY27 from 5.71% in Q1 FY26, marking an expansion of 25 basis points. On a sequential basis, NIM increased by 3 basis points.

Also Read | Costs and provisions down, IDFC Bank will continue to bolster earnings: V Vaidyanathan, MD & CEO

Asset quality showed further improvement. Gross non-performing assets (NPA) fell to 1.51% as of June 30, 2026, from 1.97% a year earlier, an improvement of 45 basis points. Gross NPA also declined by 10 basis points on a quarter-on-quarter basis.

IDFC Bank share price target

Emkay maintained its ADD rating with a target price of Rs 85 (5% upside) per share. It said PAT surged 132% YoY to Rs 1,080 crore, crossing the Rs 21,000 crore mark for the first time, driven by higher NII, strong fee income and lower provisions. Emkay expects positive operating jaws and lower provisioning to support an improvement in ROA over the next few years.
Motilal Oswal maintained its Neutral rating with a target price of Rs 90 per share, implying an 11% upside. The brokerage said IDFC First Bank delivered a strong quarter, supported by healthy operating performance and improved asset quality, aided by one-off interest on an IT refund and strong treasury gains.
Adjusted NIM declined 3 bps QoQ to 5.9%, with management expecting further contraction during the year and guiding for an NIM of 5.8%. Deposit growth remained healthy, driven by strong traction in CASA deposits and higher certificates of deposits, while loan growth was strong, supported by steady momentum in retail and a pick-up in wholesale segments.

Also Read | Nifty’s 5-day fall may be nearing a reversal; Anand James maps key levels for this week

Management commentary

The lender said it remains focused on building a high-quality banking institution with strong governance standards and is seeing healthy business momentum.

Management said asset quality continued to strengthen, with gross NPA at 1.51% and net NPA at 0.44%. Provisions as a percentage of loans also continued to decline. During the quarter, the bank received a CGFMU claim of Rs 515 crore and, as a prudent measure, created a provision of Rs 515 crore to account for any potential impact from monsoon conditions or fuel price volatility during the rest of the year.

Managing Director and CEO V Vaidyanathan said that investments made in building the bank are now beginning to translate into operating leverage, supporting the rise in PAT to Rs 1,075 crore in Q1 FY27. Return on assets (ROA) also crossed 1%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Shares of Hindustan Zinc rose 2% to their day’s high of Rs 541 on the BSE on Monday as multiple brokerages reiterated their ‘Buy’ calls for the Vedanta Group company after it reported a whopping 145% year-on-year (YoY) surge in net profit to Rs 5,469 crore for the first quarter of FY27.

Hindustan Zinc, India’s largest producer of silver, on Friday released its results for the April-June quarter of the ongoing financial year 2027. Its revenue from operations rose around 77% YoY to Rs 13,747 crore during the quarter under review, from Rs 7,771 crore reported in the same period last year. Total expenses increased over 33% YoY to Rs 6,749 crore during the quarter, which ended on June 30, 2026.

The Vedanta Group company’s net profit margin improved to 40% in the April-June quarter of FY27, from 37% in the previous quarter (Q4 FY26) and 29% in the year-ago period (Q1 FY26). Operating margin, meanwhile, increased to 52% during the quarter under review.

The metal major’s net worth also more than doubled on a YoY basis, rising around 108% to Rs 23,587 crore at the end of the June quarter of the ongoing financial year 2027. Its debt-to-equity ratio stood at 0.32 times, as against 1.19 times in Q1 FY26.

Nuvama on Hindustan Zinc share price

Nuvama Institutional Equities noted that Hindustan Zinc’s Q1 EBITDA of Rs 7,990 crore was nearly in line with estimates amid higher prices, partly offset by seasonally lower volume. . Refined Zinc cost of production (ex-royalty) stood lower at $851/ton (down $52/ton QoQ) amid benefits of higher sulphuric acid prices and rupee depreciation, it said.

Silver EBIT was down 2% sequentially due to lower volume and comprised 46% of EBIT in Q1, the brokerage added. “The tight supply market is likely to keep zinc prices relatively high while silver prices are likely to remain firm. We forecast a 3% volume CAGR for refined metal and a 4% volume CAGR for silver over FY26–28E. Higher prices and cost control shall drive EBITDA at 20% CAGR over FY26–28. The 250ktpa zinc smelter expansion shall be commissioned by Q2 FY29,” it added.

Nuvama has a ‘Buy’ call on the shares of Hindustan Zinc with a target price of Rs 700 per share, implying around 32% upside potential from the stock’s previous closing price of Rs 531.95 apiece.

Also read | Hindustan Zinc names Amarendu Prakash as new CEO; quarterly profit more than doubles on strong metal prices

JM Financial on Hindustan Zinc share price

JM Financial said Hindustan Zinc’s Q1 EBITDA beat its estimate, driven by lower cost of production. “We remain positive on HZL given its industry-leading cost position, strong balance sheet and long-term growth pipeline,” it said.
The domestic brokerage maintained its ‘Buy’ call on the stock with a target price of Rs 660 apiece, implying 24% upside potential.

Motilal Oswal on Hindustan Zinc share price

Motilal Oswal Financial Services said Hindustan Zinc delivered a slight beat on estimates, with revenue growth being driven by favorable commodity prices, higher by-product realization, and a stronger dollar.
EBITDA’s beat on forecast was primarily driven by favorable metal prices and lower cost of production. “Hindustan Zinc continues to report strong earnings, primarily driven by favorable metal pricing and better grades. The company continues to focus on increasing production output with tighter cost-control measures, which could lead to margin sustenance. The recently announced expansion plans are aligned with its long-term objective of doubling existing capacity and enhancing long-term earnings visibility. Although near-term earnings growth is capped due to limited capacity headroom, the LME/silver price inflation emerges as the key catalyst for incremental upside in the near term. We maintain our FY27/28 estimates and believe further price volatility could remain a potential risk or reward for earnings visibility,” it added.

Motilal Oswal however noted that the current valuation has priced in all the positive factors. It reiterated its ‘Neutral’ call on the stock with a target price of Rs 570 apiece.

Also read | Hindustan Zinc Q1 Results: Net profit spikes 145% YoY to Rs 5,469 crore, revenue jumps 77%

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)