Bandhan Bank Q4FY26: Profit up 68%, stock at high

What triggered the rally in Bandhan Bank shares

Bandhan Bank shares jumped more than 9-10% in early trade after the lender reported a sharp rise in Q4FY26 profit and showed steady improvement in asset quality. On the BSE, the stock was up 10.68% at ₹197.35, valuing the bank at a market capitalisation of ₹31,784.61 crore. The stock touched a 52-week high of about ₹198 on the BSE and an intraday low of ₹185. On the NSE, it hit a 52-week high of ₹199.59 and was trading around ₹195.20 at about 09:35 AM, compared with the previous close of ₹178.65.

The market reaction also reflected a broader positive session in benchmarks. The Nifty50 was quoted near 24,099.75, up 105 points or 0.43% around the same time. While the Bank Nifty was described as relatively steady, Bandhan Bank drew stock-specific buying after the March 2026 quarter results.

Q4FY26 profit jump: the key headline number

Bandhan Bank reported net profit (profit after tax) of ₹534 crore for Q4FY26, up from ₹318 crore in Q4FY25, a rise of about 68-69% year-on-year. The bank’s profit improvement was supported by lower provisions and improving collections in stressed pockets, as highlighted by broker notes. One report also noted profit before tax of ₹770 crore for Q4FY26, up 145.5% from ₹310 crore a year ago.

Net interest income (NII) rose 1.4% year-on-year to ₹2,795.4 crore in Q4FY26 from ₹2,756 crore in Q4FY25. Separately, net total income was reported at ₹3,567 crore in Q4FY26 versus ₹3,456 crore in Q4FY25, a 3.2% rise. Sequentially, NII increased to about ₹2,796 crore from ₹2,684 crore in Q3FY26, and net total income rose from ₹3,361 crore.

Margins and funding: NIM improves, guidance remains constructive

Motilal Oswal said the quarter was led by margin expansion and improved credit costs. It highlighted that net interest margins improved to 6.2% and were guided to expand further by 10-20 basis points over the next 2-3 quarters, aided by repricing of term deposits. The brokerage also referred to management commentary indicating an exit FY27 NIM guidance of about 6.5% on earning assets (about 6% on total assets).

JM Financial also flagged margin improvement, noting NIMs expanded 11 bps quarter-on-quarter, helped by a 39 bps decline in cost of funds, partly offset by lower yields. These elements, combined with reduced credit costs, helped markets treat the quarter as part of an earnings recovery phase.

Asset quality: small but steady improvements in NPAs

On asset quality, gross non-performing assets (GNPA) eased to 3.27% in Q4FY26 from 3.33% in Q3FY26. Net NPA also moved down to 0.97% from 0.99% sequentially. Another data point in the same results coverage pegged GNPA at about 3.3% and net NPA at about 1.0%.

Provisions were reported to have declined 46.3% year-on-year to ₹680 crore, supporting the earnings jump. A separate update also mentioned the provision coverage ratio at 84.9%, while another reference put provision coverage at about 85% including technical write-offs.

Business growth: advances and deposits trends

Bandhan Bank’s loans and advances (including on-book and PTC) reached ₹154,000 crore as of March-end, rising 12.6% year-on-year and 6.2% sequentially. The same results coverage reported gross advances at ₹154,233 crore as of March 31, 2026.

On liabilities, total deposits rose 10% year-on-year to ₹166,344 crore from ₹151,212 crore. CASA deposits were reported at ₹48,752 crore. These figures were cited alongside commentary that the bank is improving earnings visibility as stress in microfinance (MFI) moderates.

Dividend for FY26: what the board recommended

Bandhan Bank’s board recommended a dividend of ₹1.50 per equity share (face value ₹10 each), described as 15%, from profits for the financial year ended March 31, 2026. The dividend recommendation was disclosed through a BSE filing.

For shareholders, the dividend announcement came alongside a results print that showed a clear quarter-on-quarter improvement in profitability, with profit after tax reported at ₹534 crore in Q4FY26 versus ₹206 crore in Q3FY26.

Broker calls and target prices: Buy/Add ratings reaffirmed

Brokerages cited improving collections, easing microfinance stress and normalising credit costs as reasons to turn more constructive on the stock. Motilal Oswal maintained a ‘Buy’ rating and revised its target price to ₹210. It also upgraded earnings estimates by 4-5% for FY27/FY28 and expected RoA of 1.3%/1.5% in FY27E/FY28E versus 0.6% in FY26.

JM Financial maintained an ‘Add’ rating and raised its target price to ₹200 from ₹160 after upgrading valuation to 1.1x FY28E BVPS. Emkay maintained a ‘Buy’ and lifted its target price to ₹220 from ₹180, while flagging monitorable risks in West Bengal and Assam due to elections and potential El Niño-related disruptions.

Key numbers at a glance

Market impact: what changed for investors after the results

The immediate impact was a sharp price move and a new 52-week high, reflecting stronger confidence in earnings normalisation. The stock had recovered about 46% from its 52-week low of ₹134.25 touched on December 9, 2025, according to the reported trading data.

From a fundamentals lens, broker commentary focused on two moving parts: margin trajectory and credit costs. Motilal Oswal pointed to term deposit repricing as a support for margins. JM Financial, meanwhile, highlighted significantly lower provisions and better collections as key drivers behind the quarter’s profitability.

Why the Q4 print matters in context of FY26

While Q4FY26 was strong, annual performance numbers still show FY26 was a tougher year. Total operating income in FY26 was reported at ₹21,689.11 crore versus ₹21,948.23 crore in FY25, a 1.18% decline. FY26 profit after tax was ₹1,224 crore versus ₹2,745 crore in FY25, a 55.4% drop.

This contrast is central to how brokerages framed the story: a transition from a clean-up phase to an earnings recovery phase, provided asset quality and collections continue to improve and funding costs remain supportive.

Conclusion: what to track next

Bandhan Bank’s Q4FY26 results combined a sharp profit jump with incremental improvements in margins and asset quality, helping the stock hit a 52-week high. The board’s ₹1.50 per share dividend recommendation added to the positive headline flow, while brokerages raised targets to ₹200-₹220.

The next set of signals for investors will likely come from how NIMs track the 10-20 bps expansion guidance over the next 2-3 quarters and whether the reported improvements in credit costs and NPAs sustain across portfolios, including microfinance.