IDFC First Bank Ltd. (IDFCFIRSTB) AI Stock Analysis

• Market Cap: ₹595.14B
• Dividend Yield: 0.31%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 42.7
• Beta (1Y): 0.98
• Revenue Growth: 14.45%
• EPS Growth: -41.85%
• Country: IN
• Employees: 41,141
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.40
• Shares Outstanding: 7,339,261,700
• 10 Day Avg. Volume: 1,327,745
• 30 Day Avg. Volume: 1,004,618
• PEG Ratio: -0.54
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 2.02
• P/FCF Ratio: -1.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹79.00
• Price Target Upside: -3.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹84.00 ▲(3.04% Upside)

IDFC First Bank's stock score is primarily influenced by its financial performance and technical analysis. While the stock shows strong technical momentum, financial challenges such as declining revenue and cash flow volatility pose risks. The high P/E ratio suggests potential overvaluation, further impacting the overall score.

IDFC First Bank Ltd. Business Overview & Revenue Model

Company Description

IDFC First Bank Limited provides various banking, and financial products and services to corporates, individuals, multi- national companies, SMEs/entrepreneurs, financial institutions, and the government in India. It operates through Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Business segments. The company provides savings, corporate salary, current, and business accounts; fixed and recurring deposits; debit, credit, and prepaid cards; and payment services. It also offers personal, consumer durable, home, car, two-wheeler, equipment hypothecation, business, working capital, professional, term, and micro enterprise loans, as well as loan against property and loans for women. In addition, the company provides corporate linked finance products, including sales bill/purchase bill/invoice discounting, vendor finance, dealer finance, and factoring/receivables purchase; treasury and capital market services; and trade finance and services comprising import-export solutions, bank guarantees, remittances, etc. Further, it offers investment services consisting of mutual funds, gold bonds, demat and trading account, and investment linked insurance solutions; term, health, motor, home, travel, business, and pradhan mantri insurance products, as well as savings and annuity plans; and mobile, Internet banking, and customer care services. Additionally, the company provides cash management services; investment banking services; and investment management solutions. As of March 31, 2022, it operated 641 branches, 203 asset service branches, 719 ATMs and recyclers, and 601 rural business correspondent branches. The company was formerly known as IDFC Bank Limited and changed its name to IDFC First Bank Limited in January 2019. IDFC First Bank Limited was incorporated in 2014 and is based in Mumbai, India.

How the Company Makes Money

IDFC First Bank generates revenue primarily through interest income from its diverse portfolio of loans and advances, which includes retail loans such as home loans, personal loans, and vehicle loans, as well as corporate and SME loans. The bank also earns income from fees and commissions associated with its banking services, including transaction fees, credit card fees, and wealth management services. Additionally, IDFC First Bank benefits from investments in government securities and other financial instruments, which contribute to its interest income. The bank has established significant partnerships with fintech companies and leverages technology to enhance its digital banking offerings, thus expanding its customer base and facilitating cross-selling opportunities.

IDFC First Bank Ltd. Financial Statement Overview

Summary

IDFC First Bank shows growth in revenue and equity, but faces challenges with declining revenue and volatile cash flow, indicating operational inefficiencies and financial management concerns. The balance sheet is stable, but profitability and cash flow improvements are needed.

Income Statement

IDFC First Bank has shown a mixed performance in its income statement. The bank's revenue has increased over the years, indicating growth, but the recent drop in total revenue in 2025 suggests a potential slowdown. The gross profit margin has remained stable due to the nature of the banking industry where cost of goods sold is minimal. However, the net profit margin fluctuated due to varying net income, reflecting challenges in controlling expenses relative to revenue. The decrease in EBITDA margin from 2024 to 2025 highlights efficiency issues. Overall, while there is growth, profit margins indicate potential profitability challenges.

Balance Sheet

The balance sheet of IDFC First Bank indicates a strong equity base with growing stockholders' equity over time. The debt-to-equity ratio has remained manageable, suggesting a balanced approach to leveraging debt. However, the increasing total liabilities relative to assets could pose a risk if not managed effectively. The equity ratio suggests a solid asset base funded by equity, indicating stability. Overall, the balance sheet reflects a reasonable level of financial stability with potential for further strengthening.

Cash Flow

The cash flow statement reveals significant fluctuations in operating cash flow, particularly the negative operating cash flow in 2025, which could indicate operational inefficiencies or increased cash outflows. Free cash flow has also been volatile, showing a sharp decline recently, suggesting potential issues with cash management or capital expenditure. The operating cash flow to net income ratio has deteriorated, pointing to challenges in translating profits into cash. The bank needs to improve its cash flow stability to enhance financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	332.50B	207.56B	363.50B	272.83B	203.07B	182.06B
Gross Profit	243.73B	207.56B	200.05B	171.93B	97.29B	75.36B
EBITDA	15.83B	27.00B	44.88B	37.66B	5.48B	8.61B
Net Income	13.01B	14.90B	29.42B	24.85B	1.32B	4.83B
Balance Sheet
Total Assets	3.62T	3.44T	2.96T	2.40T	1.90T	1.63T
Cash, Cash Equivalents and Short-Term Investments	155.21B	150.99B	124.81B	137.79B	50.30B	82.89B
Total Debt	428.15B	389.84B	591.85B	624.91B	570.67B	485.70B
Total Liabilities	3.23T	3.06T	2.64T	2.14T	1.69T	1.45T
Stockholders Equity	387.88B	381.56B	322.74B	258.48B	210.82B	179.00B
Cash Flow
Free Cash Flow	0.00	-378.94B	43.15B	23.75B	21.97B	134.56B
Operating Cash Flow	0.00	-369.75B	56.88B	35.63B	26.79B	140.42B
Investing Cash Flow	0.00	-34.78B	-98.87B	-119.96B	-217.85B	-28.33B
Financing Cash Flow	0.00	427.67B	-29.54B	65.09B	272.14B	-95.98B

IDFC First Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IDFCFIRSTB, the sentiment is Positive. The current price of 81.52 is above the 20-day moving average (MA) of 77.20, above the 50-day MA of 73.33, and above the 200-day MA of 67.59, indicating a bullish trend. The MACD of 2.52 indicates Negative momentum. The RSI at 69.37 is Neutral, neither overbought nor oversold. The STOCH value of 68.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:IDFCFIRSTB.

IDFC First Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANKINDIA	74 Outperform	₹646.71B	6.71	―	2.80%	14.34%	20.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
YESBANK	68 Neutral	₹710.01B	25.28	―	―	5.15%	52.75%
FEDERALBNK	66 Neutral	₹578.77B	14.80	―	0.51%	10.62%	-5.21%
IDFCFIRSTB	61 Neutral	₹595.14B	42.69	―	0.31%	14.45%	-41.85%
INDUSINDBK	57 Neutral	₹615.08B	-80.67	―	2.09%	-7.44%	-109.30%

IDFC First Bank Ltd. Corporate Events

IDFC First Bank’s Credit Ratings Reaffirmed by Crisil

IDFC First Bank Limited has had its credit ratings reaffirmed by Crisil Ratings, maintaining a ‘CRISIL AAA/Stable’ rating for its fixed deposits, ‘CRISIL A1+’ for its certificate of deposits, and ‘Crisil AA+/Stable’ for its Tier II Bonds. This reaffirmation reflects the bank’s steady business growth, strong capitalization, and a well-diversified depositor profile, despite challenges in profitability due to ongoing investments. The bank’s funded assets have grown significantly, and it maintains a healthy capital adequacy ratio, providing a cushion against potential asset-side risks.

IDFC First Bank Utilizes Funds from Preferential Issue with No Deviations

IDFC First Bank Limited announced that it has fully utilized the proceeds from its preferential issue of Compulsorily Convertible Cumulative Preference Shares to Currant Sea Investments B.V. and Platinum Invictus B 2025 RSC Limited. The funds, amounting to ₹48,76,16,83,320, were allocated to meet the bank’s working capital requirements, support future growth plans, and prepare for potential macro-economic uncertainties. The bank confirmed there were no deviations in the use of funds, aligning with the stated objectives and maintaining transparency with stakeholders.

IDFC First Bank Releases Q2 FY26 Financial Results

IDFC First Bank Limited has released its unaudited standalone and consolidated financial results for the quarter ended September 30, 2025. The investor presentation, detailing these financial results, is available on the bank’s website, highlighting the bank’s transparency and adherence to regulatory disclosure requirements.

IDFC First Bank Grants 8 Million Stock Options to Employees

IDFC First Bank Ltd. has announced the grant of 8 million stock options to its junior and middle management employees as part of its Employee Stock Option Scheme. This initiative aims to attract and retain talent, with options vesting over four years and an exercise period of three years, potentially strengthening the bank’s workforce and aligning employee interests with company growth.

IDFC First Bank Announces Investor Meeting Schedule

IDFC First Bank Limited has announced its schedule for upcoming meetings with analysts and institutional investors, which are set to take place at various locations including Singapore, Mumbai, Hongkong, and virtually. These meetings are part of the bank’s efforts to engage with investors and provide updates on its financial performance and strategic initiatives, potentially impacting its market perception and investor relations.

IDFC First Bank Grants 70,000 Stock Options to Employees

IDFC First Bank Ltd. has announced the grant of 70,000 stock options to its eligible employees under the ‘IDFC FIRST Bank Limited – Employee Stock Option Scheme’. This move, approved by the Nomination & Remuneration Committee, is in compliance with the SEBI regulations and aims to incentivize employees by vesting the options equally over four years with a three-year exercise period. This initiative is likely to enhance employee engagement and align their interests with the company’s growth objectives.