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Federal Bank Ltd. (India)
(FEDERALBNK)
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Rating:71Outperform
Price Target:
₹393.00
â–²(10.95% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by solid financial performance (strong earnings trajectory and improving leverage) offset by material cash-flow volatility. Technicals add support given a clear uptrend above key moving averages and positive momentum indicators. Valuation is neutral-to-mildly limiting with a mid-range P/E and a very low dividend yield.
Positive Factors
Revenue & Earnings Growth
Sustained multi-year revenue and net income growth indicates durable demand and scalable core banking operations. Persistent top-line expansion supports internal capital generation, funds reinvestment into branches/digital, and underpins long-term profitability even if growth moderates.
Negative Factors
Volatile Cash Generation
Large year-to-year swings in operating and free cash flow weaken confidence in internally generated funding for growth or buffers. Persistent volatility complicates planning for loan growth, dividend policy, and provisioning, raising the reliance on external funding in stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Earnings Growth
Sustained multi-year revenue and net income growth indicates durable demand and scalable core banking operations. Persistent top-line expansion supports internal capital generation, funds reinvestment into branches/digital, and underpins long-term profitability even if growth moderates.
Read all positive factors
Federal Bank Ltd. (India) (FEDERALBNK) vs. iShares MSCI India ETF (INDA)
Market Cap
₹774.61B
Dividend Yield0.38%
Average Volume (3M)235.25K
Price to Earnings (P/E)16.7
Beta (1Y)1.12
Revenue Growth6.79%
EPS Growth15.20%
CountryIN
Employees16,941
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)19.00
Shares Outstanding2,471,685,300
10 Day Avg. Volume280,951
30 Day Avg. Volume235,250
Financial Highlights & Ratios
PEG Ratio3.61
Price to Book (P/B)1.59
Price to Sales (P/S)1.86
P/FCF Ratio7.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹332.00Price Target Upside-6.27% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)20.94
Revenue Forecast (FY)₹174.83B
Federal Bank Ltd. (India) Business Overview & Revenue Model
Company Description
The Federal Bank Limited, an prominent Indian financial institution, delivers a comprehensive array of banking and financial solutions across the nation. Its operations are strategically divided into four key segments: Treasury, Corporate/Wholesal...
How the Company Makes Money
Federal Bank primarily makes money through (1) net interest income and (2) non-interest (fee and other) income. Net interest income is earned from the spread between interest received on interest-earning assets—mainly loans and advances to retail ...
Federal Bank Ltd. (India) Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 349.00B | 342.72B | 318.79B | 266.25B | 202.54B | 165.02B |
| Gross Profit | 156.18B | 145.30B | 142.48B | 121.30B | 102.79B | 85.43B |
| EBITDA | 63.35B | 61.69B | 59.09B | 55.31B | 44.45B | 27.85B |
| Net Income | 46.83B | 43.45B | 41.59B | 38.80B | 31.65B | 19.70B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 4.02T | 3.60T | 3.18T | 2.68T | 2.26T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 268.97B | 408.41B | 311.26B | 78.84B | 328.98B |
| Total Debt | 0.00 | 331.93B | 332.37B | 225.29B | 258.62B | 202.05B |
| Total Liabilities | -411.12B | 3.61T | 3.25T | 2.87T | 2.46T | 2.07T |
| Stockholders Equity | 411.12B | 400.43B | 345.38B | 301.05B | 221.22B | 192.56B |
Cash Flow | ||||||
| Free Cash Flow | -24.99B | 82.02B | -229.82B | -333.63B | 52.80M | -80.69B |
| Operating Cash Flow | -23.64B | 85.11B | -222.28B | -330.35B | 4.89B | -77.74B |
| Investing Cash Flow | -53.69B | -451.25B | -37.94B | -89.08B | -98.44B | 9.08B |
| Financing Cash Flow | -4.87B | 319.24B | 384.30B | 433.37B | 60.38B | 81.93B |
Federal Bank Ltd. (India) Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹774.61B | 16.75 | ― | 0.38% | 6.79% | 15.20% | |
70 Outperform | ₹932.99B | 10.05 | ― | 2.42% | 2.10% | 17.72% | |
63 Neutral | ₹744.31B | 25.82 | ― | 0.10% | 14.96% | 30.22% | |
63 Neutral | ₹692.59B | 29.77 | ― | 0.31% | 10.96% | 53.78% | |
56 Neutral | ₹649.74B | 17.44 | ― | 1.34% | 0.75% | 37.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
39 Underperform | ₹685.64B | 52.26 | ― | 0.17% | -6.52% | 31.06% |
* General Sector Average
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Federal Bank Ltd. (India)
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Federal Bank Ltd. (India) Corporate Events
Federal Bank allots equity shares on employee stock option exercise
Aug 3, 2026
Federal Bank Ltd. has allotted new equity shares following the exercise of employee stock options under three of its schemes, ESOS 2010, ESOS 2017 and ESIS 2023. The allotments, approved by the bank’s Nomination, Remuneration, Ethics and Com...
Federal Bank details e-voting and virtual format for 95th AGM
Jul 31, 2026
Federal Bank has notified stock exchanges that it has published newspaper advertisements in Financial Express and Deepika detailing e-voting arrangements for its 95th Annual General Meeting on 21 August 2026. The AGM will be conducted via video co...
Federal Bank Allots 3.22 Lakh Shares on Employee Stock Option Exercise
Jul 25, 2026
Federal Bank Ltd. has allotted a total of 321,716 equity shares with a face value of Rs. 2 each to employees who exercised stock options under its ESOS 2010 and 2017 schemes and ESIS 2023 scheme on July 25, 2026. The issuance, approved by the bank...
Federal Bank opens special window to dematerialise physical shares
Jul 10, 2026
Federal Bank Ltd. has informed the stock exchanges that it has published notices in national and regional newspapers announcing a special window for the transfer and dematerialisation of its physical shares. The initiative is undertaken in line wi...
Federal Bank schedules Q1 FY27 earnings call and business update
Jul 9, 2026
Federal Bank Ltd. has scheduled an investor and analyst earnings call to discuss its unaudited financial results for the quarter ended June 30, 2026, corresponding to the first quarter of FY 2027, along with broader business updates. The call will...
Federal Bank Allots Equity Shares Under Multiple Employee Stock Schemes
Jul 5, 2026
Federal Bank Ltd. has allotted new equity shares following the exercise of employee stock options under its ESOS 2010, ESOS 2017 and ESOS 2023 schemes, along with additional allotments under the ESIS 2023 scheme. The issuances, covering several tr...
Federal Bank files SEBI demat compliance certificate for June quarter
Jul 4, 2026
Federal Bank Ltd. has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2026, to the National Stock Exchange of India and BSE. The filing is part ...
Federal Bank Allots Shares Under Employee Stock Option Schemes
Jun 16, 2026
Federal Bank Ltd. has allotted 10,000 equity shares with a face value of Rs. 2 each to employees exercising options under its ESOS 2010 scheme. On the same date, the bank also allotted 394,565 equity shares with a face value of Rs. 2 each under it...
Federal Bank Discloses Investor Meetings at Citi India Conference 2026
Jun 4, 2026
Federal Bank Ltd. notified the stock exchanges about a series of analyst and investor meetings held on June 4, 2026, during the Citi India Conference 2026 in Mumbai. The bank met with a range of large institutional investors, including mutual fund...
Federal Bank engages top global investors at Citi India Conference 2026
Jun 4, 2026
Federal Bank Ltd. notified the stock exchanges that its management held a series of one-on-one physical meetings with major institutional investors and asset managers at the Citi India Conference 2026 in Mumbai on June 4, 2026. Participants includ...
Federal Bank Discloses Analyst and Investor Meetings at BofA India Conference 2026
Jun 3, 2026
Federal Bank Ltd. has notified the stock exchanges about its participation in the BofA India Conference 2026, in line with regulatory disclosure requirements. The bank’s representatives held physical meetings in Mumbai on June 3, 2026, with ...
Federal Bank Discloses Investor Meetings at BofA India Conference 2026
Jun 3, 2026
Federal Bank has notified the stock exchanges about its participation in the BofA India Conference 2026 held on June 3, 2026, where it conducted one-on-one physical meetings in Mumbai with several institutional investors, including Panview Capital...
Federal Bank Allots Shares Under Employee Stock Option Schemes
May 31, 2026
Federal Bank Ltd. has allotted 1,500 equity shares with a face value of Rs. 2 each under its ESOS 2010 Scheme to employees who exercised their stock options. The allotment was approved by the bank’s Nomination, Remuneration, Ethics and Compe...
Federal Bank Allots 263,845 Shares Under Employee Stock Option Schemes
May 24, 2026
Federal Bank Ltd. has allotted a total of 263,845 equity shares with a face value of Rs. 2 each to employees exercising stock options under its ESOS 2010 and ESOS 2017 schemes. The move, approved by the bank’s Nomination, Remuneration, Ethic...
Federal Bank Discloses One-on-One Analyst Meet with Axis Mutual Fund
May 12, 2026
Federal Bank has notified the stock exchanges about a one-on-one analyst and investor meeting held on May 12, 2026, with Axis Mutual Fund in Mumbai. The bank stated that no presentations were made during this interaction, underscoring that the eng...
Federal Bank Allots 229,887 Equity Shares Under Employee Stock Option Schemes
May 10, 2026
Federal Bank has allotted a total of 229,887 equity shares with a face value of Rs. 2 each to employee option grantees following the exercise of stock options under its ESOS 2010 and ESOS 2017 schemes on May 9, 2026. The move slightly increases th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.