Suryoday Small Finance Bank LimitedQ2 FY27 Results & Financial Update
Suryoday Small Finance Bank Limited: Q2 FY27 standalone results and company financials – revenue ₹702.46 Cr, PAT ₹76.55 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore Suryoday Small Finance Bank Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Suryoday Small Finance Bank reported strong financial expansion in Q2 FY27, driven by sustained momentum across loan advances, disbursements, and retail deposit acquisition.
Net interest income expanded robustly year-on-year to INR 368.8 crore, supported by growth in the paying inclusive finance book and stable effective yields on advances.
Profit after tax for the quarter reached INR 76.55 crore, representing a significant increase over the same period in the previous year and building sequentially on the Q1 FY27 performance.
Asset quality metrics registered meaningful improvement during the quarter, aided by credit recoveries, write-offs, and claims receivable under the Credit Guarantee Fund for Micro Units (CGFMU) scheme.
Operating efficiency improved as reflected by a lower cost-to-income ratio compared to the previous year, even as the bank continued to invest in branch expansion and its digital banking division.
The bank maintained a healthy capital adequacy position with a total capital-to-risk weighted assets ratio (CRAR) comfortably above regulatory minimums, providing adequate headroom for ongoing portfolio expansion.
01 · Business model
What does Suryoday Small Finance Bank do?
Suryoday Small Finance Bank Limited is a scheduled commercial bank that commenced operations as a non-banking financial company (NBFC) serving unbanked and underbanked segments before transitioning to a small finance bank in January 2017.
The bank operates across 17 states and union territories through a network of 726 banking outlets, with particular regional concentration in Maharashtra, Tamil Nadu, and Odisha.
Its primary revenue model is built around asset products spanning inclusive finance (joint liability groups and individual Vikas loans), secured retail assets including commercial vehicles, mortgages, and micro-mortgages, financial institutions group lending, and micro, small, and medium enterprise financing.
The bank funds its loan book through a granular retail deposit franchise, current and savings accounts (CASA), and digital deposit channels alongside term deposits and borrowings.
02 · Historical context
What shaped the business before this quarter
Having operated as an NBFC for over a decade focusing on financial inclusion, the institution commenced operations as a small finance bank on January 23, 2017.
In prior periods, the bank initiated a strategic shift from group-based lending toward individual Vikas loans and secured retail assets such as mortgages and commercial vehicles to build a more resilient balance sheet.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Total income | ₹829.38 Cr | ₹599.50 Cr | ₹770.22 Cr |
| Profit before tax | ₹104.24 Cr | ₹39.30 Cr | ₹101.90 Cr |
| Profit after tax | ₹76.55 Cr | ₹30.41 Cr | ₹75.18 Cr |
| EPS | ₹7.20 | ₹2.86 | ₹7.07 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Gross advances expanded by 34.6% year-on-year to INR 14,972 crore as of September 2026, driving interest earned up to INR 702.9 crore for the quarter.
Effective yield on advances improved to 16.8% in Q2 FY27 compared to 16.4% in Q2 FY26, supported by growth in the inclusive finance paying book.
Other income contributed INR 126.5 crore during the quarter, supported by expanding fee streams from digital credit lines on UPI and partner-led customer acquisitions.
NIM, spread, funding cost and credit cost
Net interest margin (NIM) stood at 7.2% in Q2 FY27, improving by 28 basis points year-on-year from 6.9% in Q2 FY26.
Cost of funds moderated to 7.4% in Q2 FY27 compared to 7.7% in Q2 FY26, driven by a reduction in the cost of deposits to 7.3% despite wider term deposit rate pressures.
Cost-to-income ratio improved significantly by 596 basis points year-on-year to 70.6% in Q2 FY27 compared to 76.6% in Q2 FY26, reflecting operating leverage.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Total customer count reached approximately 7.0 million as of September 2026, representing a 92.0% increase compared to ~3.6 million in September 2025.
Total quarterly disbursements reached INR 3,096 crore in Q2 FY27, up 27.4% year-on-year from INR 2,430 crore in Q2 FY26.
Current bucket collection efficiency for inclusive finance stood at 99.3%, while overall collection efficiency (1 EMI adjusted) stood at 93.6% compared to 85.3% in Q2 FY26.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Inclusive finance represented 40.8% of total gross advances, with Vikas loans accounting for 78.3% of the inclusive finance portfolio and registering strong disbursement growth.
Secured retail assets continued to expand as a share of the portfolio, led by commercial vehicle advances growing 36.0% year-on-year and mortgage advances growing 35.8% year-on-year.
The credit line on UPI (CLOU) business scaled rapidly, reaching a book size of INR 371 crore with approximately 14.2 lakh cumulative customer counts.
Geography and market mix
The bank operated 726 banking outlets across 17 states and union territories as of September 2026, comprising 388 asset-focused outlets, 139 liability-focused outlets, and 199 rural centers.
Core regional presence remained anchored in Maharashtra, Tamil Nadu, Odisha, and Karnataka across both overall advances and deposit distribution.
07 · Asset quality & capital strength
How credit quality and balance-sheet capacity changed
Asset quality, stages and credit risk
Gross NPA ratio improved significantly to 2.9% as of September 2026 compared to 5.9% in September 2025 and 6.5% in June 2026, after giving effect to CGFMU claims.
Net NPA ratio stood at 1.5% as of September 2026 (or 0.3% when adjusted for CGFMU claims receivable of INR 181 crore against gross NPA of INR 438 crore and net NPA of INR 224 crore). Provision coverage ratio (excluding technical write-offs) stood at 48.8%.
Capital adequacy, net worth and balance-sheet capacity
The bank maintained a healthy capital position with a total CRAR of 19.4%, comprising Tier I capital of 18.7% and Tier II capital of 0.7% as of September 2026.
Book value per share (BVPS) rose to INR 208.6 as of September 2026, an 11.3% increase compared to INR 187.4 in September 2025.
08 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The bank continued to scale its digital deposit and lending partnerships, with partner-led digital deposits accounting for 19.1% of total deposits and supporting lower customer acquisition costs.
The pivot from group-based JLG lending to individual Vikas loans progressed further, supported by robust underwriting and pre-qualified customer pipelines exceeding 1 million.
09 · Reported developments
What changed operationally
Profit after tax for H1 FY27 reached INR 151.7 crore, already exceeding the full-year net profit recorded in FY26.
Sharp reduction in GNPA ratio to 2.9% alongside lower net slippages and robust collection efficiencies across retail and inclusive finance segments.
10 · Items worth noticing
The line items that can distort a quick read
Asset quality metrics and provision coverage reflect the impact of claims received and receivable under the CGFMU credit-guarantee scheme, with INR 181 crore recognized as receivable against net NPAs.
11 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Total deposits grew by 35.0% year-on-year to INR 16,184 crore as of September 2026, with retail deposits representing 84.5% of total deposits.
CASA deposits stood at INR 3,142 crore, representing a CASA ratio of 19.4%, while total borrowings stood at INR 2,532 crore.
12 · Management guidance & targets
What management is targeting from here
Management guided for annual advance and deposit growth of 30% to 35%, a target Return on Assets (RoA) of 1.3% to 1.4% (and Return on Equity of 13% to 14%), and gross NPA of ~3% with net NPA below 0.3% (CGFMU adjusted).
13 · Beyond the numbers
What changed beyond the numbers
Reported update
CSR and Community Initiatives
The bank established a fully equipped modern chemistry laboratory at Government Higher Secondary School in Kandigai, Tamil Nadu, benefiting approximately 1,250 students as part of its community outreach.
14 · Previous-quarter changes
What changed since the previous quarter
Gross advances grew 4.2% quarter-on-quarter to INR 14,972 crore, while total deposits expanded 10.6% quarter-on-quarter to INR 16,184 crore from INR 14,634 crore in Q1 FY27.
GNPA ratio improved substantially from 6.5% in Q1 FY27 to 2.9% in Q2 FY27 following CGFMU claim realizations and recoveries.
15 · Key Q&A
The quarter, answered directly
What does Suryoday Small Finance Bank do?
Suryoday Small Finance Bank Limited is a scheduled commercial bank that commenced operations as a non-banking financial company (NBFC) serving unbanked and underbanked segments before transitioning to a small finance bank in January 2017.
What is the clearest takeaway from Q2 FY27?
Suryoday Small Finance Bank reported strong financial expansion in Q2 FY27, driven by sustained momentum across loan advances, disbursements, and retail deposit acquisition.
What drove earnings or loan-book movement?
Gross advances expanded by 34.6% year-on-year to INR 14,972 crore as of September 2026, driving interest earned up to INR 702.9 crore for the quarter.
What mattered most for margins, funding or credit cost?
Net interest margin (NIM) stood at 7.2% in Q2 FY27, improving by 28 basis points year-on-year from 6.9% in Q2 FY26.
What changed operationally beyond the headline numbers?
Gross NPA ratio improved significantly to 2.9% as of September 2026 compared to 5.9% in September 2025 and 6.5% in June 2026, after giving effect to CGFMU claims.
What is management guiding or targeting from here?
Management guided for annual advance and deposit growth of 30% to 35%, a target Return on Assets (RoA) of 1.3% to 1.4% (and Return on Equity of 13% to 14%), and gross NPA of ~3% with net NPA below 0.3% (CGFMU adjusted).
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality and CGFMU Realizations: Monitor the actual cash realization of the INR 181 crore receivable under the CGFMU scheme and the stabilization of gross and net NPA ratios.
- 02
Digital Lending Scale: Track the growth trajectory of the Credit Line on UPI (CLOU) portfolio and digital deposit contribution relative to overall balance sheet growth.
- 03
Margin and Cost Trends: Observe the sustainability of net interest margins around 7.2% and further improvements in the cost-to-income ratio through operating leverage.
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