The Federal Bank Limited (FEDERALBNK.NS) stock analysis

In our weekly check, The Federal Bank Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 7.

About The Federal Bank Limited

The Federal Bank Limited is a Financial Services company (Banks - Regional) based in India, listed on NSE as FEDERALBNK.NS.

What our checks show for FEDERALBNK.NS

Red flags

• The gross margin fell by 5.5 points, to 46.3%: costs are rising faster than prices.
• Profits not backed by cash
• Analysts expect revenue to shrink about 13.9% a year.
• The stock has fallen as much as 70% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.6%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Free cash flow is only 0% of revenue.
• Recovering from its deepest fall took about 2.3 years.

Strengths

• The net margin rose by 2.3 points over 5 years, to 14.2%.
• Analysts expect earnings per share to grow about 14.6% a year over the next years.
• Analysts expect the net margin to improve by 17.3 points from today's 14.2%.
• Revenue grew 21.7% a year over the last 3 years.
• Earnings per share grew 11.9% a year over the last 3 years.
• Net profit grew 17.9% a year over the last 3 years.

Next earnings report: 2027-01-15

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Questions

What grade does The Federal Bank Limited (FEDERALBNK.NS) have?

In our weekly check, The Federal Bank Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of FEDERALBNK.NS stock?

This week's biggest flags for The Federal Bank Limited: Gross margin falling, Profits not backed by cash, Weak revenue forecast. In total 9 of 24 checks show a warning or a red flag.

What does The Federal Bank Limited do?

The Federal Bank Limited is a Financial Services company (Banks - Regional) based in India, listed on NSE as FEDERALBNK.NS.

When does The Federal Bank Limited report earnings next?

The next earnings report is expected on 2027-01-15. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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