shares jumped 5.75 per cent to ₹1,330.30 on Monday morning after the private lender reported third-quarter earnings that exceeded analyst expectations, prompting brokerages to raise price targets on the stock.
The bank’s net profit rose 3 per cent year-on-year to ₹64.90 billion for the quarter ended December 31, 2025, beating the reports estimate of ₹60.54 billion. The stock opened at ₹1,288.80 and touched an intraday high of ₹1,333.20, also marking a new 52-week high.
JM Financial upgraded its target price to ₹1,550 from ₹1,475 while maintaining a ‘Buy’ rating, citing strengthening fundamentals. Analyst Ajit Kumar noted that return on assets improved to 1.5 per cent from 1.2 per cent in the previous quarter, while return on equity rose to 13 per cent from 11 per cent. The brokerage values the core bank at 1.7 times FY28 estimated book value per share.
maintained a ‘Neutral’ rating with a target price of ₹1,400, valuing the bank at 1.6 times September 2027 adjusted book value. The research firm highlighted controlled operating expenses and lower provisions as key drivers, though it fine-tuned earnings estimates for FY27.
Asset quality showed improvement with gross non-performing assets declining to 1.4 per cent from 1.46 per cent quarter-on-quarter, better than the 1.49 per cent estimate. Net interest margin contracted 9 basis points to 3.64 per cent, in line with expectations. The bank’s loan book grew 14 per cent year-on-year, driven by corporate and SME segments, while deposits increased 15 per cent.
Trading volumes were robust with 13.86 million shares changing hands by mid-morning, valued at ₹1,819 crore. Delivery-based trades accounted for 57.88 per cent of total volumes, indicating strong investor conviction.