Dive into ICICI Bank's Q1 FY26 results announced on July 19, 2025, with insights into financial growth, core fundamentals, and technical stock analysis to guide your investment decisions.
On July 19, 2025, ICICI Bank, India’s second-largest private sector lender, shared its Q1 FY26 (April-June 2025) results, sparking interest among investors and market enthusiasts. Known for its robust retail banking and digital innovations, the bank’s performance offers a window into the health of India’s financial sector. In this blog, I’ll break down the key financial highlights, analyze the bank’s fundamentals, and explore the technical trends of its stock to help you understand what’s driving ICICI Bank’s trajectory. Whether you’re a trader or a long-term investor, this analysis aims to provide clear, actionable insights.
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Q1 FY26 Financial Performance
ICICI Bank delivered a solid performance in Q1 FY26, with strong growth in net profit and core operating income, supported by stable asset quality. Here’s a detailed look at the key financial metrics based on the latest updates:
Key Financial Highlights
Net Profit: The bank reported a standalone net profit of ₹12,768 crore, up 15.5% year-on-year (YoY) from ₹11,059 crore in Q1 FY25, though slightly down quarter-on-quarter (QoQ) from ₹12,630 crore in Q4 FY25. Consolidated profit after tax grew 16.6% YoY to ₹12,883 crore, reflecting strong contributions from subsidiaries like ICICI Prudential Life Insurance.
Net Interest Income (NII): NII rose 10.6% YoY to ₹21,635 crore from ₹19,553 crore, driven by healthy loan growth and stable margins. However, NII saw a modest 1.4% QoQ decline, reflecting pressure from the Reserve Bank of India’s (RBI) 100 bps repo rate cut.
Net Interest Margin (NIM): NIM stood at 4.34%, down 7 basis points QoQ from 4.41% in Q4 FY25, due to faster adjustments in lending yields compared to funding costs. Despite this, margins remained resilient compared to the industry average.
Core Operating Profit: Core operating profit grew 13.6% YoY to ₹17,505 crore from ₹15,412 crore, supported by strong retail and treasury income. This reflects the bank’s ability to maintain operational efficiency amid a challenging rate environment.
Provisions: Provisions increased to ₹1,814 crore in Q1 FY26, up from ₹1,332 crore in Q1 FY25, reflecting a cautious approach to credit risk management. However, provisions were significantly lower than competitors like HDFC Bank, which reported ₹14,441 crore in provisions.
Deposits and Advances:
Deposits: Total period-end deposits grew 12.8% YoY to ₹16,08,517 crore as of June 30, 2025, with average deposits up 11.2% YoY to ₹15,33,241 crore. Average Current and Savings Account (CASA) deposits rose 7.6% YoY, maintaining a CASA ratio of 39.0%.
Advances: Total domestic advances increased 13.9% YoY to ₹13.69 lakh crore, driven by retail (8.9% YoY) and business banking (33.7% YoY) segments. The bank’s focus on high-yield retail loans continues to fuel growth.
Asset Quality:
Gross NPA: The gross non-performing asset (GNPA) ratio remained steady at 1.67% QoQ, a significant improvement from 2.15% in Q1 FY25, reflecting disciplined credit management.
Net NPA: The net NPA ratio was 0.41%, slightly up from 0.39% in Q4 FY25 but improved from 0.43% in Q1 FY25, signaling stable asset quality.
Network Expansion: The bank added 83 branches in Q1 FY26, bringing its total to 7,066 branches and 13,376 ATMs/cash recycling machines, reinforcing its extensive reach.
Strategic Moves
ICICI Bank’s board approved the acquisition of 100% shareholding in ICICI Prudential Pension Funds Management Company Limited, aiming to make it a wholly-owned subsidiary, pending regulatory approvals. This move strengthens the bank’s foothold in the pension fund space. The bank also continued to invest in digital banking and retail-focused strategies, which have driven loan and deposit growth.
Fundamental Analysis
ICICI Bank’s fundamentals highlight its position as a resilient and growth-oriented institution. Let’s dive into the key metrics that make it a favorite among investors:
Market Capitalization: As of July 18, 2025, ICICI Bank’s market cap stood at ₹10,06,898 crore, making it one of India’s top financial institutions. The stock has gained 11.3% in H1 2025, outperforming the broader market.
Revenue and Profit: Q1 FY26 revenue reached ₹49,079 crore, up 10.1% YoY from ₹44,581 crore, driven by strong NII and fee income (₹6,306 crore, up 16% YoY). The 15.5% YoY net profit growth underscores the bank’s ability to navigate a tough rate environment.
Valuation Ratios:
Price-to-Earnings (P/E) Ratio: ICICI Bank currently trades at a trailing twelve-month (TTM) P/E of 19.8, which is significantly above the sector average of 9.28. This elevated multiple highlights investor confidence in the bank’s consistent performance, growth potential, and solid brand reputation.
Price-to-Book (P/B): At 3.71 times book value, the stock trades at a premium, signaling investor confidence in future growth.
Dividend Yield: With a dividend of ₹11 per share paid on August 12, 2025, the yield stands at 0.77%, appealing to income-focused investors.
Asset Quality and Risk Management: The stable GNPA (1.67%) and net NPA (0.41%) ratios, combined with a provisioning coverage ratio of 78.5%, highlight ICICI Bank’s robust risk management. The bank’s focus on retail and business banking mitigates risks from corporate exposures.
Market Position: With a 7,066-branch network and a 13.9% YoY loan growth, ICICI Bank holds a strong position in retail and business banking. Its digital platforms, like iMobile Pay, continue to drive customer engagement and fee income.
Analyst Sentiment: Of 42 analysts covering the stock, the median target price is ₹1,635.72, suggesting a 13.3% upside from the current price of ₹1,415.60. Most analysts maintain a “Buy” rating, citing strong loan growth and stable asset quality.
Challenges and Opportunities
Challenges: Margin compression due to the RBI’s rate cut and rising operating costs could pressure profitability. Slower QoQ loan growth (11.9% vs. 13.9% YoY) reflects caution amid a changing rate environment.
Opportunities: The bank’s focus on retail, digital banking, and strategic acquisitions (e.g., ICICI Prudential Pension Funds) positions it for long-term growth. Its stable asset quality and strong deposit base provide a buffer against macroeconomic headwinds.
Technical Analysis
ICICI Bank’s stock has shown bullish momentum, with a 11.3% gain in H1 2025 and a recent high of ₹1,471.60. Here’s a technical breakdown for traders and investors:
Current Price and Trend: On July 18, 2025, the stock closed at ₹1,415.60, down 0.22% from ₹1,426.40. Despite the daily dip, the stock is up 13.48% over the past 30 days, reflecting strong bullish sentiment.
Key Levels:
Support: Immediate support lies at ₹1,385. A break below this could test the next support at ₹1,300.
Resistance: Resistance is at ₹1,471–₹1,480. A breakout above ₹1,480 could target ₹1,560, aligning with analyst forecasts.
Moving Averages Analysis: The stock is positioned above its 50-day and 200-day moving averages, indicating a bullish trend for the medium to long term. A 10-day moving average crossover occurred on July 16, 2025, suggesting potential short-term caution, with historical data showing an average price drop of 1.9% within 7 days.
Chart Patterns: The stock is consolidating near its 52-week high of ₹1,471.60, forming a potential breakout pattern. Sustained trading above ₹1,465 could signal further upside.
Trading volumes are solid, showing a rise in search interest (up 6% over the past 30 days), which suggests heightened attention from investors. The Relative Strength Index (RSI) is expected to be in the 60-70 range, signaling positive momentum while avoiding overbought levels.
Market Sentiment Analysis: Posts on X reflect optimistic sentiment toward ICICI Bank, emphasizing its 15.5% year-on-year profit increase and consistent asset quality as major strengths. In contrast to HDFC Bank’s varied performance, ICICI Bank’s reduced provisions and robust profit growth have been highlighted, though concerns about margin pressures remain.
Conclusion
Sources: ICICI Bank’s official filings, Moneycontrol, Business Standard, Goodreturns, and posts on X.
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