9 financial stocks, 9 report cards: Check the top buy picks according to analysts

Motilal Oswal just reviewed a fresh batch of Q1 FY27 earnings across NBFCs, banks, and microfinance players. Some smashed estimates, others stumbled, here's the full breakdown.

Steady margins, strong growth, a standout performer

AU Small Finance Bank beat profit estimates with resilient margins and controlled costs. Profit rose 37% year-on-year even as loan growth stayed healthy above 24%. Analysts call it their top pick among mid-sized private banks, expecting a 35% profit growth rate through FY28.

One bank surges, one card company cools off

IDFC First Bank's profit more than doubled year-on-year, boosted by insurance claims and lower provisioning, with credit costs guidance improving. Meanwhile, SBI Cards saw margins shrink and spending growth slow, though credit costs kept improving to decade-low levels. Analysts stayed Neutral on both.

Profit rockets 60% as margins expand

Shriram Finance posted a massive jump in net profit, helped by wider margins and lower credit costs. The company is doubling down on MSME and gold loans, aiming to nearly double MSME's share of its book. A fresh capital infusion from MUFG is fueling analyst optimism heading into FY27.

Profit craters 72% after surprise legal settlement.

Bank of Baroda's earnings took a major hit from a one-time ₹56.7 billion charge to settle a legal claim. Margins also slipped and loan growth cooled. Analysts trimmed forecasts but say the bank's core business remains steady, with credit growth guidance unchanged at 12-14%.

Rural lender delivers a standout quarter

CreditAccess Grameen's profit jumped 45% quarter-on-quarter as credit costs normalized and margins expanded. The company is targeting aggressive growth, aiming to add 100,000 new borrowers a month and reach ₹500 billion in loans by 2028. Analysts raised earnings estimates sharply.

Solid, steady growth continues
DCB Bank's profit grew 36% year-on-year on healthy loan growth, even as margins dipped slightly. Asset quality improved with lower bad-loan ratios. Analysts see the bank staying on a stable growth path and reiterate their bullish call.

A turnaround in the making

Spandana Sphoorty's profit more than doubled quarter-on-quarter as the microfinance lender's operating performance swung back to positive. The company has set ambitious growth targets, aiming to more than triple its loan book by 2028. Analysts raised earnings estimates but held a cautious rating for now.

Business picks up, bad loans improve

Five-Star Business Finance saw disbursements jump 23% quarter-on-quarter as business volumes recovered. Early-stage loan delinquencies improved meaningfully, signalling healthier asset quality. With strong capital reserves, analysts are watching upcoming management commentary closely for further cues.

According to Motilal Oswal, this earnings season shows a clear divide, steady performers like AU Bank and CreditAccess Grameen are pulling ahead, while others like Bank of Baroda face one-off setbacks. Swipe back for any pick. Remember, these are analyst views, not guaranteed returns.