IDFC FIRST BANK Results Analysis-Q3FY26

Interest Earned for Q3FY26 is Rs. 10,417 Crs., 11.5% growth YoY, Net Interest Income is Rs. 5,493 Crs, 12% growth YoY, Total Net Income is Rs. 7,618 Crs., 14% growth YoY, Pre-Provisioning Operating Profit is Rs. 2,009 Crs., 14.17% growth YoY, PBT is Rs. 611 Crs., 44.77% growth YoY (which includes 86.34 Cr. one-time impact of New Labour Code), Net profit is Rs. 479 Crs., 40.7% growth YoY. For Q3FY26 Gross NPA 1.69% vs 1.94% in Q3FY25, Net NPA 0.53% vs 0.52% in Q3FY25. Closing Business AUM as on Q3FY26 is Rs. 2,79,428 Crs., 21% growth YoY (Growth came across mortgages, vehicle, consumer, MSME, wholesale; these accounted for 89% of the increase), 5% growth QoQ. Wealth AUM: ~₹60,000 cr, +31% YoY. On QoQ basis Interest Earned growth is 4.83%, Net Interest Income has grown by 7.43%, Total Net Income growth is 8.76%, Pre-Provisioning Operating Profit has grown by 7.14%, PBT grown by 44.24% and PAT also grown by 37.62%. Cost of funds reduced from 7.8% (Mar-2019) to 6.11%, i.e., -169 bps, CEO expects cost of funds to move below 6% by Q4 as SA cuts flow through. Credit costs are peaking down: Q3 at 2.05%, with management expecting continued decline as MFI normalizes. Margin inflection is now guided, with Q4 NIM raised to ~5.85%; primary lever is deposit repricing, especially SA. ROA uplift is primarily operating leverage + liability-side breakeven, not a change in risk-adjusted spread.