Jana SFB Q2 FY27 Earnings Call: PAT Guidance Doubled, NIMs Improve
Jana SFB revised its FY27 PAT guidance to 100% growth, up from 80%, after reporting its highest ever PBT in Q2 FY27. H1 FY27 PAT reached ₹326 crore. NIMs improved to 7.54% driven by a better asset mix and lower cost of funds. Gross NPA fell to 2.17%. Key product launches planned for Nov-Dec 2026.
The upward revision of PAT guidance by 20 percentage points and the declaration of the highest ever PBT are material financial events that are likely to significantly impact investor perception and the bank's stock performance.
The bank reported its highest ever PBT, revised its PAT guidance upwards significantly, and showed improvements in NIMs, asset quality, and operating leverage. Management expressed confidence in achieving future targets.
Jana Small Finance Bank Limited (JSFB) conducted its Q2 & H1 FY27 earnings conference call on October 23, 2026, following a Board of Directors meeting. The bank reported its highest ever Profit Before Tax (PBT) in Q2 FY27. The Profit After Tax (PAT) for H1 FY27 reached ₹326 crore, equivalent to the full-year PAT of the previous year. Consequently, the bank has revised its PAT guidance upwards from an 80% increase to a 100% increase for the full fiscal year.
The improvement in performance was driven by several key factors. Net Interest Margins (NIMs) increased to 7.54% in Q2 FY27 from 6.5% in Q2 FY26, attributed to a better asset mix, including growth in the Microfinance Institution (MFI) portfolio, and a reduction in the cost of funds from 7.9% to 7.4%. The bank also reported growth in secured assets, which now constitute 73.7% of the loan book, with an aim to reach 80%.
Operating costs saw a 15% year-on-year increase, but the revenue growth of 35% led to a positive jaws of 20%. Absolute costs in Q2 were marginally lower than in Q1. The Gross NPA decreased to 2.17%, and Net NPA stood at 1.08%. The bank expects Net NPA to fall below 1% once claims lodged under the guarantee program are realized.
Challenges such as one-off slippages in drought-affected areas and a secured loan into NPA were noted, but these are expected to be temporary. The bank is actively managing its loan portfolio, with collection efficiencies at 99%. Future growth is anticipated from segments like affordable housing, MSME, and vehicle loans.
Key product launches planned include Credit Line on UPI, loans against shares and mutual funds (November 2026), and Trade FX (December 2026). The bank is also focusing on improving its CASA (Current Account Savings Account) ratio and plans to launch a digital onboarding program for CASA customers by January 2027.
The bank maintained its guidance for advances at 19-21% and deposits at 23-25%. The revised PAT guidance of 100% growth is considered achievable, with no significant challenges foreseen on the credit cost, asset growth, or liability growth fronts.
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