Equitas Small Finance Bank shares rally 7% on 5-fold jump in Q4 profit to Rs 213 crore

Shares of Equitas Small Finance Bank surged 7% to Rs 72.90 during Monday’s trading session after the lender reported a sharp jump in its fourth-quarter earnings for FY26.

The bank posted a net profit of Rs 213 crore in Q4FY26, marking a 406% increase compared to Rs 42 crore in the same period last year. The strong performance was driven by business expansion, improved asset quality, and a significant reduction in provisions.

Pre-provision operating profit rose nearly 30% year-on-year to Rs 403 crore, up from Rs 311 crore, while provisions declined to Rs 124 crore from Rs 258 crore a year earlier.


For the full fiscal year, however, net profit stood at Rs 103 crore, down 30% from Rs 147 crore in the previous year.

On the operational front, the bank reported robust growth in advances and disbursements. Gross advances grew 22% year-on-year and 7% sequentially, supported by a 21% rise in the non-MFI portfolio. Within this, housing finance, micro and small enterprises (MSE), and gold loans saw strong traction, with the gold loan portfolio crossing Rs 850 crore during the quarter.

Total deposits increased 8% year-on-year, with the CASA ratio at 26%. The bank also recorded its highest-ever quarterly disbursements at Rs 7,347 crore, reflecting a 72% jump year-on-year and a 12% rise quarter-on-quarter.

Among key segments, small business loans grew 13% annually, while secured business lending within this category expanded 27%, contributing a third of the portfolio. Used car and commercial vehicle financing also posted healthy growth of 31% and 25%, respectively.

Profitability metrics improved, with net interest margin (NIM) rising to 7.29%, up 57 basis points sequentially, aided by higher interest income and a lower cost of funds, which declined to 6.94% from 7.13% in the previous quarter.

Return on assets (ROA) and return on equity (ROE) for the quarter stood at 1.46% and 14.10%, respectively.

On the capital front, the bank remained well-capitalized, with net worth at Rs 6,125 crore. As of March 31, 2026, its capital adequacy ratio (CRAR) stood at 20.31%, including Tier I capital of 16.68% and Tier II capital of 3.63%.

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