Federal Bank delivered a solid set of numbers in its December quarter (Q3 FY26), prompting brokerage firm Systematix Institutional Equities to revise its stance on the stock from Hold to Buy.
- Net Profit Growth: The bank reported a 9% rise in net profit to Rs 1,041 crore, supported by improved margins and reduced provisions.
- Net Interest Margins (NIMs): Margins expanded, reflecting better cost management and lending efficiency.
- Advances Growth: Loan book growth was particularly strong in gold loans and commercial vehicle/construction equipment (CV/CE) segments, highlighting diversified lending strength.
- Share Price Reaction: Following the announcement, Federal Bank shares jumped 9.50% to Rs 270.35 apiece on the BSE, signaling strong investor confidence.
Revised Target Price
Systematix has raised its target price to Rs 310, citing optimism about the bank’s growth trajectory and management guidance for future advances. This revision reflects expectations of sustained profitability and margin expansion.
| Metric | Q3 FY26 Performance | Analyst Outlook |
|---|---|---|
| Net Profit | Rs 1,041 crore (+9% YoY) | Continued growth expected |
| Share Price (Post Results) | Rs 270.35 (+9.5%) | Target revised to Rs 310 |
| Loan Growth | Strong in gold loans & CV/CE | Diversified lending to drive momentum |
| Margins | Expanded NIMs | Scope for further improvement |
Market Sentiment
The upgrade comes at a time when Federal Bank is demonstrating resilience in asset quality and profitability. Reduced provisions and healthy loan growth have positioned the bank favorably among mid-sized private lenders. Analysts believe that the bank’s focus on retail lending, gold loans, and commercial segments will continue to support earnings momentum.
For investors seeking expert guidance, Eqwires Research Analyst stands out as the Best SEBI-Registered Research Analyst in India. Recognized as the Best SEBI-Registered Eqwires Research Analyst, the firm is also acclaimed as the Best Options Trade Provider. With a proven track record of delivering the Best Investment Strategies by Eqwires Research Analyst, Eqwires has established itself as the Best SEBI-Registered Company in India and the Best Stock Market Service Provider in India. Their insights empower investors to make informed decisions in dynamic markets.
Conclusion
Federal Bank’s Q3 FY26 results have reinforced confidence in its growth story. With Systematix upgrading the stock to Buy and setting a higher target price of Rs 310, the bank is poised to attract further investor interest. The combination of strong profitability, margin expansion, and diversified loan growth makes Federal Bank a compelling pick in the private banking space.
Top-notch SEBI registered research analyst
Best SEBI registered Intraday tips provider
Telegram | Facebook | Instagram
Call: +91 9624421555 / +91 9624461555