IDBI Bank's Profitability Improves Despite a Sequential Revenue Dip
IDBI Bank's Q1 profit grew 7.2% from the previous quarter, even as revenue softened, showing improved cost management.
IDBI Bank reported a 5.3% yearly rise in profit for Q1 FY27. While revenue dipped sequentially, the bank managed to expand its net profit margin quarter-on-quarter.
IDBI Bank has started the new fiscal year with a mixed but resilient performance. While revenue softened compared to the previous quarter, the bank managed to deliver a solid increase in profit, pointing to improved operational efficiency and cost management.
The bank's revenue for the quarter ended June 2026 stood at ₹7,549 crore, marking a 7.4% increase from the same period last year. However, it declined by 3.3% compared to the March 2026 quarter. Profit after tax (PAT) showed stronger momentum, rising 5.3% year-on-year to ₹2,131 crore and, more notably, jumping 7.2% from the previous quarter. This sequential profit growth, achieved despite lower revenue, lifted the net profit margin to 28.2%, up from 25.5% in Q4 FY26.
A look at the last five quarters reveals a volatile profit trend, with a particularly strong performance in Q2 FY26 skewing the annual figures.
Revenue (₹ Cr)
Profit (PAT, ₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 7,549.28YoY +7.4% | 7,803.71 | 7,026.62 |
| Profit (PAT, ₹ Cr) | 2,130.57YoY +5.3% | 1,987.44 | 2,023.87 |
| Net Profit Margin (%) | 28.2YoY -2.1% | 25.5 | 28.8 |
Key Points
- The bank maintains a strong balance sheet with a low debt-to-equity ratio of 0.46.
- Trailing twelve-month (TTM) net profit margin remains robust at 31.5%.
- The stock trades at a P/E of 7.2, a significant discount to the industry average of 12.6.
The focus now shifts to whether IDBI Bank can sustain this improved margin profile while reigniting revenue growth in the coming quarters.
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· IDBI
(BSE)
ISIN: INE008A01015
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