Equitas Small Finance Bank Reports Q1 FY27 Results: Net Profit Rebounds to ₹183.61 Crore; Asset Quality Improves YoY

Equitas Small Finance Bank Limited has announced its unaudited financial results for the first quarter ended June 30, 2026. The Chennai-based lender demonstrated a sharp operational turnaround, posting a Net Profit After Tax of ₹18,360.69 lakh (₹183.61 crore) for the quarter, compared to a net loss of ₹22,376.33 lakh recorded in the corresponding quarter of the previous fiscal year (Q1 FY26).

The bank's financial recovery was anchored by sustained expansion in core interest income, improved asset quality metrics, and controlled credit costs across its operating segments.

Income and Expense Trajectory

For Q1 FY27, Equitas Small Finance Bank registered a Total Income of ₹2,099.81 crore (₹2,09,980.77 lakh), up from ₹1,940.55 crore in Q1 FY26. Interest earned during the quarter grew significantly to ₹1,960.40 crore (₹1,96,039.79 lakh) compared to ₹1,648.86 crore in Q1 FY26, driven primarily by strong returns from advances and bills discounting, which generated ₹1,631.74 crore. Income on investments contributed ₹175.33 crore, while interest on balances with the RBI and other inter-bank funds stood at ₹30.12 crore. Other income for the period came in at ₹255.10 crore.

On the expenditure side, interest expended rose to ₹930.81 crore (₹93,080.52 lakh) against ₹863.12 crore in Q1 FY26. Total operating expenses stood at ₹879.96 crore, with employee costs accounting for ₹548.71 crore and other operating expenses totaling ₹331.26 crore.

Total expenditure before provisions and contingencies reached ₹1,810.77 crore, resulting in an Operating Profit before Provisions & Contingencies of ₹404.73 crore (₹40,473.33 lakh) for Q1 FY27-a strong rise from ₹314.77 crore recorded in Q1 FY26.

Provisions, Taxation, and Profitability Metrics

Provisions (other than tax) and contingencies dropped sharply to ₹160.66 crore (₹16,066.03 lakh) in Q1 FY27 from a elevated level of ₹612.25 crore in Q1 FY26. Consequently, Profit Before Tax (PBT) reached ₹244.07 crore (₹24,407.30 lakh).

After accounting for a tax expense of ₹25.05 crore, the bank secured a net profit of ₹183.61 crore. Basic and Diluted Earnings Per Share (EPS) for the quarter stood at ₹1.61 and ₹1.60 respectively (face value of ₹10 per share), turning positive from negative ₹1.96 per share in Q1 FY26. Return on average assets improved to 0.29% for the quarter.

Asset Quality and Capital Strength

Equitas Small Finance Bank showed clear improvements across key balance sheet and asset quality indicators:

Gross NPAs: Stood at ₹1,100.39 crore (₹1,10,038.62 lakh), down from ₹1,134.89 crore as of March 31, 2026. The Gross NPA ratio improved to 2.42% from 2.60% in the preceding quarter and 2.92% in Q1 FY26.

Net NPAs: Reported at ₹318.94 crore (₹31,893.59 lakh). The Net NPA ratio stood at 0.71%, compared to 0.72% in Q4 FY26 and 0.98% in Q1 FY26.

Capital Adequacy Ratio (CAR): Remained strong at 19.44% under Basel-II norms, well above mandatory regulatory thresholds.

Net Worth: Reached ₹5,798.33 crore (₹5,79,833.21 lakh) as of June 30, 2026.

Segment-Wise Performance Breakdown

Retail Banking: Remained the dominant growth driver, producing segment revenue of ₹1,920.10 crore (₹1,92,010.01 lakh) compared to ₹1,557.91 crore in Q1 FY26. The segment generated a positive result of ₹209.13 crore, recovering completely from a loss of ₹432.37 crore in Q1 FY26. Total retail banking assets stood at ₹45,495.10 crore.

Treasury Operations: Generated segment revenue of ₹237.05 crore (₹23,704.67 lakh) and recorded segment results of ₹38.51 crore. Treasury segment assets expanded to ₹16,388.06 crore.

Wholesale Banking: Recorded revenue of ₹35.55 crore with segment assets standing at ₹2,082.48 crore.

Other Banking Operations: Contributed segment revenue of ₹22.80 crore and segment results of ₹22.36 crore.

The bank's overall balance sheet size expanded significantly, with total segment assets touching ₹64,282.57 crore (₹64,28,256.88 lakh) as of June 30, 2026, supported by total capital employed of ₹6,367.28 crore.

Shares of Equitas Small Finance Bank Limited was last trading in BSE at Rs. 72.64 as compared to the previous close of Rs. 73.06. The total number of shares traded during the day was 99416 in over 943 trades.

The stock hit an intraday high of Rs. 73.95 and intraday low of 72.38. The net turnover during the day was Rs. 7285147.00.

Source : Equity Bulls

Keywords

EquitasSmallFinanceBank INE063P01018 Q1FY27 Q1FY2027 ResultUpdate