Equitas SFB Q4 FY26 PAT up 406%, hits 52-week high

Stock jumps to a fresh 52-week high

Equitas Small Finance Bank (Equitas SFB) shares rallied more than 11% on Tuesday, hitting a new 52-week high after the lender reported a multi-fold jump in Q4FY26 profit. The stock opened with a 6% gap-up at ₹71 and moved quickly to an intraday high of ₹74.60. At 11:50 AM, Equitas SFB was trading 10.4% higher at ₹73.80 on the back of a sharp rise in volumes. On the BSE, the stock traded 10% higher at ₹73.89, with volumes reported to be more than 6.6 times higher.

Trading volumes spike across NSE and BSE

Volume was a key feature of the move. Around 33 million shares changed hands on the NSE, compared with about two million shares in the previous session. The combination of a gap-up open and heavy follow-through buying pushed the stock to new highs during the session. The price action reflected how closely the market tracked the bank’s quarterly earnings and operating indicators. The move also came alongside commentary that pointed to improving asset quality and business expansion.

Q4FY26 profit: highest-ever quarterly PAT

In an exchange filing, Equitas SFB said it reported its highest quarterly profit after tax (PAT) of ₹213 crore in Q4FY26. The bank said this represented a 406% year-on-year increase. It also reported that PAT rose 136% sequentially. Another disclosure in the provided material compared Q4FY26 PAT of ₹213 crore with ₹42 crore in the same quarter last year.

Lower provisions and stronger operating profit support earnings

The jump in earnings was accompanied by a sharp reduction in provisions in the quarter. Pre-provision operating profit rose nearly 30% year-on-year to ₹403 crore, compared with ₹311 crore a year earlier. Provisions were reported at ₹124 crore, down from ₹258 crore in the year-ago quarter. Separately, management commentary cited credit costs compressing to 1.11% as another supportive factor for quarterly profitability.

Net interest margin improves as funding costs ease

Equitas SFB reported a sequential improvement in net interest margin (NIM). NIM rose 57 basis points quarter-on-quarter to 7.29%, which the bank attributed to higher interest income on advances and a reduced cost of funds. In the same set of disclosures, cost of funds declined to 6.94% from 7.13% in the previous quarter. The bank also said total net income grew 18% year-on-year and 9% quarter-on-quarter.

Loan book growth and record disbursements

On the operating front, the lender reported robust momentum in advances and disbursements. Gross advances were reported at ₹46,165 crore, up 22% year-on-year and 7% quarter-on-quarter, driven by strong disbursement momentum. A separate provisional figure in the material showed gross advances at ₹46,183 crore (21.58% year-on-year growth and 6.74% quarter-on-quarter growth). The bank also reported its highest-ever quarterly disbursements at ₹7,347 crore, up 72% year-on-year and 12% quarter-on-quarter.

Segment trends: small business, secured lending, vehicle finance

Among key segments cited, small business loans grew 13% annually. Secured business lending within the small business category expanded 27% and was described as contributing about a third of the portfolio. Used car financing and commercial vehicle financing grew 31% and 25%, respectively. These segment disclosures were presented as part of the drivers behind advances growth and improving profitability metrics.

Deposits, capital position, and headline ratios

Deposits were also reported to be higher on a year-on-year basis. Total deposits increased 8% year-on-year to ₹46,533 crore (also shown as 7.96% year-on-year growth and 6.56% quarter-on-quarter growth in a separate table). The bank’s net worth was reported at ₹6,125 crore. Profitability ratios for the quarter were reported at return on assets (ROA) of 1.46% and return on equity (ROE) of 14.10%.

Asset quality indicators cited in disclosures

Improved asset quality was cited as part of the earnings narrative. One disclosure reported X-bucket collection efficiency at 99.71%. It also reported 1-90 DPD reducing to 1.43%, describing this as normalized credit stress. These indicators, along with lower provisions and credit costs, were presented as contributing factors to the quarter’s earnings outcome.

Full-year profit number in the same set of results

While Q4 was strong, the provided material also included a full-year number. Full-year PAT for FY26 was reported at ₹103 crore, down 30% from ₹147 crore in the previous year. This contrast underlines that the quarterly surge came in a year where full-year profitability, as reported, was lower year-on-year.

Why the market reaction was sharp

The stock’s sharp move reflected the scale of the quarterly profit increase and the visible improvement in key operating levers such as NIM and provisions. Investors also appeared to respond to the pace of loan growth and record disbursements, alongside the reported improvement in collection efficiency and delinquency metrics. The unusually high trading volumes on both NSE and BSE suggested broad participation in the move, rather than a narrow, low-liquidity rise.

Conclusion

Equitas SFB’s Q4FY26 update combined a record quarterly PAT of ₹213 crore, a sequential improvement in NIM to 7.29%, and a sharp decline in provisions. The market responded with a surge to a new 52-week high and a significant spike in volumes. The quarter’s operating numbers, including gross advances of about ₹46,165-46,183 crore and record disbursements of ₹7,347 crore, set the immediate context for how investors are tracking the bank’s execution into FY27.