IDFC First Bank Ltd. (IDFCFIRSTB) AI Stock Analysis

• Market Cap: ₹718.25B
• Dividend Yield: 0.29%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.89
• 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: 8,596,653,000
• 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): 0.96
• 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: ₹100.00
• Price Target Upside: 19.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹84.00 ▲(0.54% 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.

Positive Factors

Revenue Growth

The bank's consistent revenue growth indicates a successful expansion of its market reach and product adoption, which is crucial for long-term business sustainability.

Stable Balance Sheet

A strong equity base and manageable debt levels suggest financial stability, providing the bank with a solid foundation to support future growth initiatives.

Digital Banking Expansion

The bank's focus on digital banking solutions and partnerships with fintech companies enhances its customer base and cross-selling opportunities, supporting long-term growth.

Negative Factors

Cash Flow Volatility

Volatile cash flows, particularly negative operating cash flow, indicate potential operational inefficiencies that could hinder financial stability and growth.

Profitability Challenges

Fluctuating net profit margins and a decrease in EBITDA margin suggest challenges in expense management, impacting the bank's ability to sustain profitability.

Decline in Free Cash Flow

A decline in free cash flow suggests potential issues with cash management or capital expenditure, which could limit the bank's ability to invest in growth opportunities.

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 loans and advances given to customers, which is a significant component of its earnings. The bank provides various loan products, including personal loans, home loans, and business loans, allowing it to charge interest over the loan tenure. Additionally, the bank earns fee-based income through services such as account maintenance fees, transaction fees, and charges for other banking services. It also generates income from its treasury operations, which involve managing its investment portfolio and trading in securities. Strategic partnerships with fintech companies and other financial institutions further enhance its service offerings and customer base, contributing to revenue growth.

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	451.16B	436.09B	363.50B	272.83B	207.62B	190.27B
Gross Profit	272.92B	264.01B	224.80B	171.93B	132.97B	104.41B
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: 83.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 83.55 is below the 20-day moving average (MA) of 83.69, above the 50-day MA of 82.87, and above the 200-day MA of 74.49, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.98 is Neutral, neither overbought nor oversold. The STOCH value of 67.65 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	₹746.64B	7.64	―	2.87%	14.34%	20.97%
AUBANK	69 Neutral	₹733.54B	31.84	―	0.10%	30.73%	14.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
YESBANK	68 Neutral	₹671.82B	21.16	―	―	5.15%	52.75%
INDUSINDBK	62 Neutral	₹697.55B	-34.30	―	1.95%	-7.44%	-109.30%
IDFCFIRSTB	61 Neutral	₹718.25B	43.95	―	0.29%	14.45%	-41.85%
FEDERALBNK	61 Neutral	₹702.94B	17.28	―	0.45%	10.62%	-5.21%

IDFC First Bank Ltd. Corporate Events

IDFC First Bank Maps Out February 2026 Investor Conference Roadshow

IDFC First Bank has announced a packed schedule of participation in multiple high-profile analyst and institutional investor conferences in early February 2026, including events hosted by Goldman Sachs, ICICI Securities, JM Financial, Nuvama, Systematix, Axis Capital and IIFL in virtual, Singapore and Mumbai venues. The bank plans to use its Q3 FY26 investor presentation at these meetings, signalling an active push to engage the global and domestic investment community, enhance transparency around its performance, and potentially strengthen its visibility and positioning among institutional investors in the financial sector.

IDFC First Bank Shareholders Clear Investor-Nominee Director Appointment via E-Voting

IDFC First Bank has announced that its shareholders have approved, via a postal ballot conducted through remote e-voting, the appointment of Narendra Ostawal as a Non-Executive Non-Independent Director, nominated by investor Currant Sea Investments B.V. The resolution received the requisite majority based on the scrutinizer’s report and has been formally declared passed, with the detailed voting results and scrutinizer’s report made available on the bank’s and NSDL’s websites, underscoring compliance with SEBI’s listing regulations and signaling continued investor representation on the board.

IDFC First Bank Expands Equity Through Employee Stock Options

IDFC First Bank Ltd. has announced the allotment of 571,443 equity shares to eligible employees as part of its Employee Stock Option Scheme. This move increases the bank’s issued and paid-up equity share capital, reflecting its commitment to employee engagement and retention, and potentially enhancing its market position.

IDFC First Bank to Engage with Investors at Citi’s India Financials Tour 2025

IDFC First Bank Limited has announced a scheduled meeting with analysts and institutional investors, which will take place during Citi’s India Financials Tour 2025 in Mumbai. The bank plans to use its Q2-FY26 investor presentation for the meeting, which is available on its website. This engagement is part of the bank’s ongoing efforts to maintain transparency and communication with its stakeholders, potentially impacting its market perception and investor relations.

IDFC First Bank Initiates Postal Ballot for Board Appointment

IDFC First Bank Ltd. has announced a postal ballot to seek approval from its members for the appointment of Mr. Narendra Ostawal as a Non-Executive Non-Independent Director, representing Currant Sea Investments B.V. The voting process will be conducted exclusively through remote e-Voting, with results expected to be announced by December 23, 2025. This move is part of the bank’s ongoing efforts to strengthen its board and align with regulatory requirements, potentially impacting its governance and strategic direction.

IDFC First Bank Allots Over 3.9 Million Shares Under ESOS

IDFC First Bank Limited has announced the allotment of 3,949,026 equity shares to eligible employees as part of its Employee Stock Option Scheme (ESOS). This move increases the bank’s issued and paid-up equity share capital, reflecting its commitment to employee engagement and potentially enhancing its market position.