DCB Bank (DCBBANK) Q2 25/26 earnings summary

Executive summary

• Deposits grew 18.79% YoY to ₹64,777 crore and advances rose 19.14% YoY to ₹52,975 crore in Q2FY26, marking five consecutive quarters of high growth.

• Profit after tax for Q2FY26 reached ₹184 crore, up 18% YoY, the highest ever quarterly profit, with EPS at 5.84.

• ROE for H1 FY26 stood at 12.39%, the highest first-half ROE in a decade, with capital adequacy ratio at 16.41%.

• Maintained a focus on granular, secured lending, with 86% of the loan book below ₹3 crore.

• Unaudited financials for Q2 and H1 FY26 were approved by the Board, prepared in accordance with Indian GAAP, RBI, and SEBI regulations.

Financial highlights

• Interest income increased 16.22% YoY, net interest income for Q2FY26 rose 17% YoY to ₹596 crore, and operating profit for Q2FY26 grew 19% YoY to ₹304 crore.

• Net profit for Q2FY26 was ₹183.91 crore, up from ₹155.47 crore in Q2FY25; H1 FY26 net profit was ₹341.17 crore, up from ₹286.83 crore in H1 FY25.

• Gross NPA improved to 2.91% and Net NPA to 1.21% as of September 30, 2025.

• Provision coverage ratio at 74.15% and credit cost for Q2FY26 at 0.31%.

• Capital adequacy ratio (Basel III) at 16.41% as of September 30, 2025.

Outlook and guidance

• Management aims to double the balance sheet every 3-4 years, with advances and deposits expected to double in three to three and a half years.

• NIM expected to expand further if no additional rate cuts occur, with a target range of 3.50%-3.65%.

• ROE guidance: 13.5% for FY 2026-27 and 14.5% for FY 2027-28; return on assets targeted at 1% or above.

• GNPA targeted below 2.50% and NNPA at 1.00% in the near term.

• No plans to raise additional capital in the next two years unless market conditions are favorable.