Emkay raises Federal Bank target to INR 420 for Federal Bank stock
Published on 10/25/2026 at 00:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSTarget revision and earnings
- Emkay raised its Federal Bank target from INR 400 to INR 420 on October 18, 2026.
- Federal Bank reported INR 13.86 billion in net profit for the second quarter of fiscal year 2027.
- Federal Bank stock was last at INR 340.90 on the NSE on October 23, 2026 at 3:28 p.m. IST.
Federal Bank (INE171A01029) drew a higher analyst target after Emkay lifted its view from INR 400 to INR 420 in a report dated October 18, 2026, as reported by Moneycontrol. The revision followed Federal Bank's strongest quarterly profit on record.
Three milestones shape the story
On August 14, 2026, Federal Bank set a dividend of INR 1.20 per share, according to InCred Money. On October 16, 2026, the bank reported net profit of INR 13.86 billion for the quarter ended September 30, 2026, up 45.10 percent year over year, in its Federal Bank release. On October 18, 2026, Emkay raised its target from INR 400 to INR 420.
What does profit growth mean for margins?
The earnings mix is the key investor signal. Net interest income rose 26.38 percent year over year to INR 31.53 billion in the second quarter of fiscal year 2027, while net interest margin reached 3.32 percent. Emkay said the bank reiterated guidance for a quarterly net interest margin improvement of 5 to 6 basis points, although the path would not be linear.
Asset quality provided a second support. Federal Bank reported gross non-performing assets of 1.32 percent and net non-performing assets of 0.17 percent for the quarter, both described as decade lows. Gross advances reached INR 3.02 trillion, up 21.66 percent year over year, while total business crossed INR 6.4 trillion.
Where the stock stood on October 23
Federal Bank was last at INR 340.90 on the NSE on October 23, 2026 at 3:28 p.m. IST. Its market capitalization was INR 841.3 billion, and the 52-week range was INR 228.02 to INR 371.70. The figures place the stock below its yearly high while the latest earnings and target revision provide a concrete basis for the renewed valuation debate.
Federal Bank stock facts
- Company: The Federal Bank Limited
- ISIN: INE171A01029
- Ticker: FEDERALBNK
- Primary exchange: NSE
- Market capitalization: INR 841.3 billion (as of October 23, 2026)
- 52-week range: INR 228.02 to INR 371.70 (as of October 23, 2026)
- Sector / Industry: Financial Services / Regional Banks
Market context: Market report BSE Sensex.
