Stock Report

Indbank Merchant Banking Services Posted 11% Profit Growth in Q1 FY27 as Net Profit Hits ₹237.53 Lakhs

Posted On : 2026-07-12 10:59:00( TIMEZONE : IST )

Indbank Merchant Banking Services Limited has released its un-audited financial results for the first quarter of fiscal year 2026-27 (Q1 FY27) ended June 30, 2026. The financial services firm delivered strong bottom-line growth, backed by an expansion in its core fee-based revenue pipelines and a disciplined reduction in quarterly overhead costs.

Core Revenue Streams and Expansion

Indbank reported a total income of ₹690.48 lakhs for the quarter ended June 30, 2026. This performance marks a steady expansion compared to the ₹669.18 lakhs recorded during the corresponding quarter of the previous fiscal year (Q1 FY26) and a sequential recovery from the ₹592.05 lakhs generated in the preceding quarter ended March 31, 2026 (Q4 FY26).

The company's primary driver of growth was its fees and commission income, which climbed to ₹493.23 lakhs in Q1 FY27, up from ₹462.78 lakhs in Q1 FY26 and ₹456.64 lakhs in Q4 FY26. Total revenue from operations also received a boost from fair value changes, which turned around to log a net gain of ₹34.75 lakhs, successfully reversing a steep net loss of ₹45.84 lakhs recorded in the preceding quarter.

In contrast, classical interest-bearing segments experienced a mild softening. Interest income moderated to ₹158.29 lakhs during the quarter, down from ₹170.64 lakhs in the same period last year. Rental income also experienced a minor decline, logging at ₹3.91 lakhs compared to ₹4.38 lakhs in Q1 FY26, while dividend income registered at zero for the quarter.

Operational Expenditure and Profit Profile

On the cost management side, Indbank optimized its spending structure, pushing total quarterly expenses down to ₹382.11 lakhs, compared to ₹390.85 lakhs in Q1 FY26 and ₹414.71 lakhs in Q4 FY26.

While employee benefits expenses ticked up slightly year-on-year to ₹239.97 lakhs from ₹236.75 lakhs, other operating expenses fell notably to ₹97.94 lakhs, down from ₹102.84 lakhs in the corresponding period of the previous year. Finance costs were lower at ₹1.03 lakhs, compared to ₹7.49 lakhs in the year-ago quarter, whereas impairments on financial instruments stood at ₹6.90 lakhs.

This combination of higher fee revenues and reduced spending expanded the company's profit before tax (PBT) to ₹308.37 lakhs, an increase of 10.8% over the ₹278.33 lakhs posted in Q1 FY26, and an advance over the ₹177.34 lakhs recorded in Q4 FY26.

Net Profit and Total Comprehensive Income

After accounting for a current tax expense of ₹75.87 lakhs and an offsetting deferred tax credit of ₹5.03 lakhs, Indbank Merchant Banking Services concluded the quarter with a net profit of ₹237.53 lakhs. This bottom-line figure represents an 11.05% year-on-year growth path against the ₹213.89 lakhs achieved in Q1 FY26, and more than doubles the net profit of ₹110.62 lakhs achieved from continuing operations in the previous sequential quarter.

Total other comprehensive income reflected a minor post-tax impact of ₹0.89 lakhs from the remeasurement of defined benefit plans. Consequently, the total comprehensive income for the quarter settled at ₹236.64 lakhs, outperforming the ₹209.38 lakhs achieved in the same period last fiscal year.

With the paid-up equity share capital remaining steady at ₹4,437.82 lakhs, the basic and diluted earnings per equity share (EPS) for Q1 FY27 improved to ₹0.54 per share, up from ₹0.48 in Q1 FY26 and ₹0.27 in the preceding quarter.

Shares of Indbank Merchant Banking Services Limited was last trading in BSE at Rs. 34.08 as compared to the previous close of Rs. 33.47. The total number of shares traded during the day was 10857 in over 225 trades.

The stock hit an intraday high of Rs. 34.20 and intraday low of 33.48. The net turnover during the day was Rs. 368421.00.