Federal Bank Share Price Target 2026: Private sector lender Federal Bank is in focus following its Q4 results reported in the previous session, where the company posted a 22 per cent jump in consolidated net profit for the March quarter of FY26 at Rs 1,341 crore, compared to Rs 1,091 crore in the same period last year.
Post its Q4 results, global brokerages such as Motilal Oswal, Emkay, and Morgan Stanley have issued their stock recommendations along with share price targets. However, the outlook provided by brokerages ranges from positive to neutral, with an upside potential of 24 per cent for the stock.
Morgan Stanley hikes price target; Maintains ‘equal-weight’
Morgan Stanley maintains an equal-weight rating on Federal Bank with a target price of Rs 260, up from Rs 250, implying a downside of 8 per cent from the current price level.
“Equal weight” means the stock in a portfolio or index is allocated the same percentage, regardless of its market size or price.
The brokerage highlights 32 per cent YoY growth in adjusted core PPOP, a 2 bps QoQ improvement in NIM, and a 24 per cent rise in fee income. CASA grew 21 per cent YoY, while credit costs improved despite higher slippages.
Motilal Oswal sees 15% upside
Motilal Oswal maintains a “Buy” rating on Federal Bank with a target price of Rs 325 (earlier Rs 310), indicating an upside potential of over 15 per cent.
The brokerage notes steady quarterly performance despite one-offs, including a Rs 1.15 billion tax provisioning reversal.
Loan growth remained strong across SME, gold, and CV segments. Asset quality is expected to remain stable with credit costs at 50–55 bps, and FY27 RoA/RoE projected at 1.26 per cent/12.2 per cent.
Nuvama maintains ‘Buy’ on private lender stock
Nuvama maintains a “Buy” rating with a target price of Rs 350, up from its earlier target of Rs 325, highlighting strong deposit growth and improving loan momentum. The brokerage sees an upside of 24 per cent.
It further notes that margins are improving, the cost-to-income ratio remains stable at 53-55 per cent, and core credit costs are expected to improve, supported by floating provisions aiding ECL transition.
Emkay maintains positive view
Emkay maintains a “Buy” rating with a target price of Rs 350, citing 13 per cent YoY credit growth and margin expansion to 3.7 per cent, aided by one-offs. Growth is driven by high-yield retail segments.
Federal Bank Share Price
As of 10:00 AM, shares of the private lender were down 1.2 per cent, or Rs 3.30, trading at Rs 281.50. The stock touched a low of Rs 280.55, reflecting a decline of 1.5 per cent from the previous close of Rs 284.75.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
