IDFC First Bank (BOM:539437) Beneish M-Score: -2.26 (As of Jul. 01, 2026)


BOM:539437 IDFC First Bank Ltd BOM:539437
72 GF Score
Price ₹79.52
GF Value ₹77.73
Valuation Fairly Valued
! 8 Warning Signs
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What is IDFC First Bank Beneish M-Score?

IDFC First Bank BOM:539437 +1.67% 72 Beneish M-Score is -2.26 as of Jul. 01, 2026. GuruFocus rates BOM:539437 with a GF Score™ of 72/100 and a GF Value™ of ₹77.73 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,397 Banks companies, IDFC First Bank ranks worse than 73.09% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for IDFC First Bank's Beneish M-Score or its related term are showing as below:

BOM:539437' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33   Med: -2.25   Max: -0.73
Current: -2.26

During the past 12 years, the highest Beneish M-Score of IDFC First Bank was -0.73. The lowest was -3.33. And the median was -2.25.

BOM:539437
72GF Score
IDFC First Bank Ltd BOM:539437
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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IDFC First Bank Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of IDFC First Bank for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0014+0.892 * 1.1073+0.115 * 0.9476
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.013023-0.327 * 0.9514
=-2.26

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹0 Mil.
Revenue was ₹290,893 Mil.
Gross Profit was ₹290,893 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹3,997,746 Mil.
Property, Plant and Equipment(Net PPE) was ₹26,261 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹8,608 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹366,326 Mil.
Net Income was ₹16,106 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹68,166 Mil.
 Total Receivables was ₹0 Mil.
Revenue was ₹262,705 Mil.
Gross Profit was ₹262,705 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹3,439,087 Mil.
Property, Plant and Equipment(Net PPE) was ₹27,362 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹8,356 Mil.
Selling, General, & Admin. Expense(SGA) was ₹5,569 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹331,238 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 290893.4) / (0 / 262705)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(262705 / 262705) / (290893.4 / 290893.4)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 26260.7) / 3997746.4) / (1 - (0 + 27361.6) / 3439087.4)
=0.993431 / 0.992044
=1.0014

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=290893.4 / 262705
=1.1073

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(8355.5 / (8355.5 + 27361.6)) / (8607.7 / (8607.7 + 26260.7))
=0.233936 / 0.246862
=0.9476

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 290893.4) / (5569.2 / 262705)
=0 / 0.021199
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((366326.4 + 0) / 3997746.4) / ((331237.9 + 0) / 3439087.4)
=0.091633 / 0.096316
=0.9514

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(16105.6 - 0 - 68166.4) / 3997746.4
=-0.013023

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

IDFC First Bank has a M-score of -2.26 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.26 mean?
IDFC First Bank (BOM:539437) has a Beneish M-Score of -2.26 as of Jul. 01, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on IDFC First Bank and its competitors. According to the industry distribution chart, IDFC First Bank ranks #1021 out of 1397 companies in the Banks industry, placing it in the top 73.1%.
Is IDFC First Bank's Beneish M-Score too high?
IDFC First Bank's current Beneish M-Score is -2.26. Based on the distribution chart, IDFC First Bank ranks #1021 out of 1397 companies in the Banks industry, which is below the industry midpoint. Overall, IDFC First Bank has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does IDFC First Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, IDFC First Bank ranks #1021 out of 1397 companies for Beneish M-Score. This places IDFC First Bank in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on IDFC First Bank and its competitors. IDFC First Bank's current Beneish M-Score is -2.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IDFC First Bank stock overvalued right now?
Based on GuruFocus' analysis, IDFC First Bank (BOM:539437) is currently considered Fairly Valued. The stock's GF Value™ is ₹77.73, compared to a current price of ₹79.52 — trading 2.3% above its estimated fair value. The current Beneish M-Score is -2.26. IDFC First Bank's overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For IDFC First Bank (BOM:539437), the current Beneish M-Score is -2.26 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is IDFC First Bank (BOM:539437) Overvalued in 2026?

Based on GuruFocus' analysis, IDFC First Bank stock appears to be overvalued. The current stock price of ₹79.52 is trading 2.3% above its estimated GF Value™ of ₹77.73. GuruFocus considers IDFC First Bank to be Fairly Valued.

Key valuation signals for BOM:539437:

  • Beneish M-Score: -2.26
  • GF Value™: ₹77.73 vs. price of ₹79.52 (2.3% above fair value)
  • GF Score™: 72/100 with 8 warning signs

No single metric tells the full story. See the BOM:539437 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

IDFC First Bank Business Description

Other Exchanges IDFCFIRSTB:India
Address The Square, C-61, G-Block, Ground Floor To 8th Floor, Bandra-Kurla Complex, Bandra (East), Mumbai, MH, IND, 400 051
IDFC First Bank Ltd provides banking services including lending to individuals, providing loans, non-fund facilities, transaction services, corporate advisory, project appraisal placement, and syndication through the branch network and other delivery channels. The bank holds an investment portfolio, money market borrowing and lending, investment operations, and an entire foreign exchange and derivative portfolio. It organizes its business into four segments namely Treasury, Corporate and Wholesale, Retail, and Other Banking Business. The company generates maximum revenue from the Retail banking segment.
72GF Score

Get the complete analysis for BOM:539437

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹79.52
Price
₹77.73
GF Value