IndusInd Bank is expected to report a sharply weaker Q3FY26, with brokerages pencilling in a 78%-99% year-on-year fall in profit after tax (PAT) amid muted loan growth, pressure on margins and elevated credit costs. The net profit is pegged in a wide range between Rs 13 crore and 313 crore, according to the estimates by four brokerages.

The net interest income (NII) could slide up to 18%, falling in the range of Rs 4,300 crore to Rs 4,441 crore, the estimates revealed.

The estimates of Nuvama Institutional Equities, PL Capital, Systematix and ElaraCapital have been taken into account. The figures could see a sharper deterioration on a sequential basis.

The earnings will be announced on Friday, January 23.

Here’s what brokerages recommended:

1) PAT

— Nuvama: Rs 110 crore, down 92% YoY and down 125% QoQ

— PL Capital: 13 crore, down 99% YoY, down 103% crore QoQ
— Systematix: 229 crore, down 84% YoY and down 151% QoQ
— ElaraCapital: Rs 313 crore, down 78% YoY

2) NII

— Nuvama: Rs 4,300, down 18% YoY and down 2.5% QoQ
— PL Capital: Rs 4,441 crore, down 15% YoY and up 0.7% QoQ
— Systematix: Rs 4,403 crore, down 16% QoQ and down 0.2%, QoQ
— ElaraCapital: Rs 4,354 crore, down 17% YoY and down 1.3% QoQ

3) PPoP

The pre-provision operating profit is expected to remain under pressure. Elara Capital sees PPoP at Rs 1,947 crore, down YoY and QoQ at 46% and 4%, respectively. Meanwhile PL Capital estimates Rs 2,118 crore, down 41% YoY and 4%, sequentially.

4) Margins

— Nuvama: 3.25% in Q3 FY26, down 68 bps YoY and down 7 bps QoQ
— PL Capital: 3.60%, down 68 bps YoY and up 8 bps QoQ

5) Loans & deposits

— Nuvama: Loans are seen at Rs 3,18,800 crore, down 13% YoY and down 2% QoQ while deposits at Rs 3,94,000 crore, down 4% YoY and up 1.1% QoQ.
— PL Capital: Rs 3,18,800 crore, down 13 YoY and down 2% QoQ

6) Credit cost

PL Capital expects the credit cost to go up by 73 bps YoY to 2.63% while receding 58 bps QoQ.

7) Asset quality

Systematix has pegged provisions at Rs 1,722 crore, which could go down 1.2 YoY and 34% QoQ.

Slippages are expected to decrease sequentially, driven by lower MFI slippages. Hence, provisions are also expected to decrease sequentially, it said in a preview note. Moreover, fee income to be broadly stable but non-fee other income is expected to be higher on a sequential basis, this brokerage said.

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