Equitas SFB Q1FY27 PAT ₹184 Cr vs ₹224 Cr loss YoY; Gross Advances up 27%
Equitas Small Finance Bank reported Q1FY27 PAT of ₹184 Crore vs. ₹224 Crore loss YoY. Gross advances grew 27% YoY to ₹6,784 Crore. Deposits grew 10% YoY. NIM was 7.24%. GNPA reduced to 2.36%.
The substantial improvement in profitability (from loss to profit) and strong growth in key financial metrics like advances and disbursements are material positive developments for the bank, likely to be viewed favorably by investors.
The bank has reported a significant turnaround in profitability, moving from a substantial loss in the previous year's quarter to a healthy profit in the current quarter. Key growth metrics like gross advances and disbursements are also showing strong positive trends.
Equitas Small Finance Bank Limited announced its unaudited financial results for the quarter ended June 30, 2026. The bank reported a Profit After Tax (PAT) of ₹184 Crore for Q1FY27, a significant turnaround from a loss of ₹224 Crore in Q1FY26. The Return on Assets (ROA) and Return on Equity (ROE) for Q1FY27 stood at 1.18% and 11.76% respectively.
Gross advances grew by 27% year-on-year and 3% quarter-on-quarter, supported by robust disbursements across verticals. Non-MFI book grew 22% YoY, with specific growth rates in Housing Finance (24%), MSE (28%), and Gold Loan (179%). Overall deposits grew by 10% YoY and 5% QoQ, with CASA ratio maintained at 25%.
Overall disbursements reached ₹6,784 Crore in Q1FY27, marking a substantial 93% YoY growth, though declining 8% QoQ. The flagship Small Business Loans (SBL) product saw a 15% YoY growth, with Business Loan (BL) advances contributing 34% of the SBL portfolio. Used Car and Used CV advances also showed strong growth of 30% YoY and 25% YoY, respectively.
The Net Interest Margin (NIM) for the quarter was 7.24%, a marginal decline of approximately 12 bps QoQ. The Cost to Income ratio was 68.38% in Q1FY27, compared to 67.52% in Q4FY26 and 70.62% in Q1FY26. The bank's Net Worth stands at ₹6,367 Crore, with Total CRAR at 19.44% as of June 30, 2026.
Asset quality showed improvement, with Gross Non-Performing Assets (GNPA) reducing by 13 bps QoQ to 2.36% in Q1FY27. Net Non-Performing Assets (NNPA) increased slightly by 2 bps QoQ to 0.70%. Net slippages were reported at 1.43% in Q1FY27, and the Credit Cost declined significantly to 1.37% from 6.48% in Q1FY26.
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