Chennai, January 14, 2026 – Indbank Merchant Banking Services Limited, a subsidiary of Indian Bank, reported a solid improvement in profitability for the quarter ended December 31, 2025, driven by stable fee and commission income and controlled expenses.
Q3 FY26 Financial Performance (Standalone)
For the three months ended December 31, 2025, the company posted a profit before tax of ₹258.19 lakh, marking a 36.3% year-on-year increase from ₹189.37 lakh in the corresponding quarter of the previous year.Total income during the quarter stood at ₹625.28 lakh, compared with ₹565.07 lakh a year earlier. Revenue from operations was largely supported by fee and commission income, which remained the dominant contributor.
Key Income Components (₹ lakh)
| Particulars | Q3 FY26 | Q3 FY25 |
|---|---|---|
| Interest income | 164.36 | 156.43 |
| Fees and commission income | 449.60 | 425.01 |
| Net gain on fair value changes | 7.50 | (23.22) |
| Total revenue from operations | 625.23 | 563.48 |
| Other income | 0.05 | 1.59 |
| Total income | 625.28 | 565.07 |
Expense Management Supports Margins
Total expenses for the quarter declined marginally to ₹367.09 lakh from ₹375.70 lakh in Q3 FY25. Employee benefit expenses, the largest cost head, were largely stable year-on-year, while impairment charges moderated sharply.| Expense Head (₹ lakh) | Q3 FY26 | Q3 FY25 |
|---|---|---|
| Employee benefits expense | 202.50 | 220.22 |
| Fees and commission expense | 36.19 | 35.64 |
| Impairment on financial instruments | 11.08 | 12.15 |
| Other expenses | 109.84 | 91.77 |
| Total expenses | 367.09 | 375.70 |
Nine-Month Performance Shows Steady Growth
For the nine months ended December 31, 2025, Indbank Merchant Banking reported a profit before tax of ₹788.04 lakh, compared with ₹997.86 lakh in the year-ago period. Total income for the nine-month period stood at ₹1,923.24 lakh, supported by consistent fee-based revenues.Business Mix Remains Fee-Led
Fee and commission income continued to account for the bulk of operational revenue, reflecting the company’s asset-light merchant banking and advisory-led business model. Interest income remained stable, while gains from fair value changes turned positive during the quarter, aiding overall profitability.About the Company
Indbank Merchant Banking Services Limited is a listed subsidiary of Indian Bank, engaged in merchant banking, advisory services, underwriting, and related financial services. The company focuses on fee-based income streams with limited balance sheet risk, catering primarily to institutional and corporate clients.Source:
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