Equitas Small Finance Bank (EQUITASBNK) Q3 25/26 earnings summary

Executive summary

• Initiatives in microfinance, including monthly repayment mode and focus on new-to-credit customers, improved collection efficiency to 99.4% and sharply reduced NPAs.

• Achieved highest ever quarterly disbursements at Rs. 6,557 Cr in Q3FY26, up 28% YoY and 22% QoQ, with robust growth in both MFI and non-MFI segments.

• Gross advances rose 16% YoY and 11% QoQ to Rs. 43,268 Cr, with non-MFI book up 19% YoY and strong growth in housing, MSE, and gold loans.

• Net profit (PAT) for Q3FY26 was Rs. 90 Cr, up 36% YoY and 273% QoQ, despite a one-time provision of Rs. 29.52 Cr for new labor code implementation.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board and reviewed by statutory auditors with an unmodified report.

Financial highlights

• Net interest income for Q3 FY26 was INR 852 crore; other income was INR 285 crore, totaling INR 1,137 crore (up 8% YoY, 14% QoQ).

• NIM improved 43 bps QoQ to 6.72%; cost of funds reduced to 7.13% in Q3FY26 from 7.35% in Q2FY26.

• PAT stood at INR 90 crore, up 36% YoY and 273% QoQ, after a one-time INR 29.5 crore labor law provision.

• Gross advances grew 16% YoY to INR 43,268 crore; deposits grew 7% YoY to INR 43,668 crore.

• Total income for the quarter ended December 31, 2025, was ₹1,98,113.42 lakh, up from ₹1,84,629.26 lakh in the previous quarter.

Outlook and guidance

• Guided for 1% exit ROA in Q4 FY26 and 15% full-year advances growth (excluding DA purchase).

• FY27 growth expected at 20%-25% with ROA target of 1.5% by Q4 FY27.

• Cost-to-income ratio targeted to fall to 65% by end of next year as business scales.

• The impact of new labour codes has been provisioned, with further assessment pending final rules and industry practices.

• Credit cost expected to decline further, with Q4 FY26 below 1.5% and FY27 in the 1.5%-1.7% range.