Shares of private sector lender Yes Bank Ltd tumbled as much as 4% during Monday's trading session, following the announcement of its June 2026 quarter results over the weekend. Despite the initial dip, the stock pared some losses as the day progressed, driven by several rating upgrades and increased target prices from various brokerage firms.
Q1 FY27 Performance Highlights
Yes Bank reported a significant 33.7% year-on-year (YoY) increase in standalone net profit, reaching Rs 1,071 crore for the quarter ending June 30, 2026. The bank's Net Interest Income (NII) also saw robust growth, climbing 17.5% YoY to Rs 2,786 crore. Net Interest Margins (NIM) improved to 2.7% for the reported quarter, while asset quality remained largely stable on a sequential basis.
On Monday, Yes Bank shares plunged 3.85% to Rs 22.72, bringing its market capitalization down to Rs 71,000 crore. The stock has seen a nearly 12% decline from its 52-week high of Rs 25.77, recorded just a month prior on June 18. However, the stock still shows an 8% gain year-to-date in 2026.
Brokerage Reactions and Target Price Adjustments
Several financial institutions have weighed in on Yes Bank's performance and future outlook:
- JM Financial upgraded the stock to 'reduce' from 'sell', revising its target price by 30% to Rs 22 from an earlier Rs 17. They noted that the bank's Profit After Tax (PAT) beat was driven by improved core profitability and lower tax expenses, though partly offset by higher-than-expected provisions and an increase in credit cost to 56 bps due to moderated recoveries.
- ICICI Securities maintained its 'hold' rating, pushing its target price up by 14% to Rs 24 from Rs 21. They highlighted accelerated loan growth (18% YoY, largely corporate-driven) and sustained NII growth aided by a YoY NIM uptick.
- Nuvama Institutional Equities reiterated its 'reduce' rating with a target of Rs 22 per share. They pointed to a PAT miss despite higher credit growth, mainly due to increased provisions from slower Specialised Recovery (SR) recoveries and staff costs. While management expects strong growth and a 1% Return on Assets (RoA) by FY28, Nuvama believes core profitability remains weak relative to valuations.
International brokerages also shared their views:
- Morgan Stanley holds an 'underweight' rating with a target price of Rs 15, suggesting a potential 37% downside.
- Citi maintains a 'sell' rating with a target price of Rs 22.
Conversely, some domestic firms offered a more optimistic outlook:
- Axis Capital issued a 'buy' rating on the stock, setting a target price of Rs 28, indicating a potential 20% upside.
Key factors for investors to monitor include the court judgment on the AT1 bond issue and any potential increase in stake by SMFG, according to analysts.