Equitas Small Finance Bank (EQUITASBNK) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 saw record disbursements of ₹7,347 Cr, strong business growth, improved asset quality, and record profitability, with the highest ever PAT of ₹213 Cr, up 406% YoY and 136% QoQ; ROA improved to 1.46% and ROE to 14.1%.

• NIM continued its upward trend, reaching 7.29% in Q4FY26, supported by higher income and lower cost of funds.

• All lending products, including new segments like affordable housing and MSE finance, turned profitable; gold loan portfolio crossed ₹850 Cr.

• Deposit growth was 8% YoY to ₹46,533 Cr, with new products launched to diversify and strengthen the deposit base.

• Audited financial results for the quarter and year ended March 31, 2026, were approved with an unmodified audit opinion.

Financial highlights

• Net interest income for Q4 was ₹981 Cr; other income at ₹259 Cr; total net income ₹1,239 Cr.

• PAT reached ₹213 Cr in Q4FY26, up 406% YoY and 136% QoQ; full-year PAT at ₹10,308 lakh.

• NIM improved by 57 bps Q-on-Q to 7.29%.

• Gross advances grew 22% YoY to ₹46,165 Cr; disbursements at ₹7,347 Cr, up 72% YoY.

• Gross NPA reduced to 2.49% (down 13 bps Q-on-Q); Net NPA at 0.68% (down 20 bps Q-on-Q).

Outlook and guidance

• Advances growth guidance maintained at 20%+ YoY for FY27, with MFI advances at ~10% of total.

• NIM expected to stabilize around 7% due to lower microfinance share and rising cost of funds.

• Credit cost for FY27 guided at 1.5%, with Q4 exit ROA targeted at 1.5% and full-year ROA at 1.2%-1.25%.

• Deposit rates increased in March, expected to raise cost of funds and moderate NIM.

• No material deviation in use of funds; all NCD proceeds fully utilized for intended purposes.