Equitas Small Finance Bank LimitedQuarter ended Results & Financial Update
Equitas Small Finance Bank Limited: Quarter ended standalone results and company financials – total income ₹2,357.51 Cr, PAT ₹218.04 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 Equitas Small Finance Bank Quarter ended 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
Equitas Small Finance Bank crossed the ₹1 lakh crore milestone for total business during the quarter ended September 30, 2026, driven by sustained loan expansion and deposit mobilization.
Total income for the quarter reached ₹2,357.51 crore, up from ₹1,846.29 crore in the corresponding quarter of the previous year and ₹2,215.50 crore in the preceding quarter.
The bank recorded its highest-ever quarterly profit after tax (PAT) at ₹218.04 crore for Q2 FY27, compared to ₹24.14 crore in Q2 FY26 and ₹183.61 crore in Q1 FY27.
Profit before tax (PBT) for the quarter stood at ₹287.38 crore, reflecting an improvement over both the year-ago period (₹33.54 crore) and the previous quarter (₹244.07 crore). Basic earnings per share (EPS) rose to ₹1.91 compared to ₹0.21 a year earlier.
Net interest margins (NIM) stood at 6.69% for Q2 FY27, showing a contraction of 55 basis points quarter-on-quarter, alongside a slight rise in the cost of funds to 7.12%.
Asset quality showed sequential improvement with gross non-performing assets (GNPA) ratio declining to 2.29% from 2.42% in Q1 FY27, while net NPA ratio edged down to 0.70%.
The bank's capital adequacy remained robust with total CRAR at 20.92% as of September 30, 2026, comfortably above regulatory thresholds.
01 · Business model
What does Equitas Small Finance Bank do?
Equitas Small Finance Bank operates as a scheduled commercial small finance bank offering retail banking, microfinance, wholesale banking, and treasury operations across India. Its primary business model focuses on providing credit and deposit products to unbanked and underbanked micro and small entrepreneurs, individuals with limited access to formal banking channels, as well as mass-affluent and SME segments.
The bank generates its revenue primarily through interest earned on advances and bills, income from investments, and various fee-based services including third-party product distribution, asset recovery, and priority sector lending certificate (PSLC) transactions.
Liability mobilization relies on granular retail deposits, current and savings accounts (CASA), and term deposits, supported by certificate of deposit issuance programmes and Tier II capital raising.
02 · Historical context
What shaped the business before this quarter
The bank crossed the milestone of ₹50,000 crore in gross advances and ₹50,000 crore in total deposits during Q2 FY27.
The bank raised Tier II capital of ₹500 crore and issued non-convertible debentures of ₹500 crore in September 2026.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Quarter ended | Year-ago | Previous quarter |
|---|---|---|---|
| Total income | ₹2,357.51 Cr | ₹1,846.29 Cr | ₹2,215.50 Cr |
| Profit before tax | ₹287.38 Cr | ₹33.54 Cr | ₹244.07 Cr |
| Profit after tax | ₹218.04 Cr | ₹24.14 Cr | ₹183.61 Cr |
| EPS | ₹1.91 | ₹0.21 | ₹1.60 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Interest earned on advances and bills rose to ₹1,817.55 crore during Q2 FY27, up from ₹1,410.40 crore in Q2 FY26 and ₹1,754.65 crore in Q1 FY27.
Income on investments contributed ₹180.40 crore during the quarter compared to ₹162.85 crore in the year-ago period.
Other income, which includes retail banking fees, third-party product commissions, PSLC income, and investment revaluations, stood at ₹291.52 crore for Q2 FY27.
NIM, spread, funding cost and credit cost
Cost of funds increased by 7 basis points quarter-on-quarter to 7.12% in Q2 FY27 from 7.05% in Q1 FY27.
Total operating expenses rose to ₹914.86 crore, comprising employee costs of ₹546.05 crore and other operating expenses of ₹368.80 crore.
The cost-to-income ratio stood at 69.36% for Q2 FY27 compared to 68.38% in Q1 FY27 and 75.89% in Q2 FY26.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Gross advances grew by 30% year-on-year and 6% quarter-on-quarter, crossing the ₹50,000 crore threshold to reach ₹46,751.47 crore as balance sheet advances.
Overall disbursements during Q2 FY27 reached ₹7,450 crore, marking a 38% increase year-on-year and 10% quarter-on-quarter.
Non-MFI advances expanded 24% year-on-year, led by MSE growth of 38%, Housing Finance growth of 27%, Used Car growth of 29%, Used Commercial Vehicle growth of 21%, and Gold Loan growth of 193%.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Retail banking segment revenue reached ₹1,996.59 crore, generating a segment result before tax of ₹217.79 crore.
Treasury segment recorded revenue of ₹275.39 crore and a segment result of ₹54.76 crore for the quarter.
Wholesale banking segment reported revenue of ₹56.65 crore with a segment profit of ₹5.51 crore.
Geography and market mix
The bank operates exclusively within domestic segments in India, with no international branch network or digital banking units set up separately.
07 · Asset quality & capital strength
How credit quality and balance-sheet capacity changed
Asset quality, stages and credit risk
Gross NPA improved by 13 basis points sequentially to 2.29% (₹1,086.30 crore) in Q2 FY27 from 2.42% in Q1 FY27. Net NPA improved to 0.70% (₹325.00 crore).
Provision coverage ratio remained stable at 70.08%, and reached 86.73% when including technical write-offs.
Net slippages improved by 4 bps sequentially to 1.39%. Credit cost declined to 0.94% for Q2 FY27 compared to 1.37% in Q1 FY27 (1.12% excluding the ARC transaction).
Capital adequacy, net worth and balance-sheet capacity
Total CRAR stood at 20.92% as of September 30, 2026, comprising Tier I capital of 16.35% and Tier II capital of 4.57%.
The bank's net worth (excluding DTA, revaluation reserve, and intangibles) stood at ₹5,995.77 crore, with total regulatory net worth at ₹6,553 crore.
08 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
During the half year ended September 30, 2026, the bank allotted 30,83,857 equity shares under the ESFB ESOP Scheme and raised ₹500 crore in Tier II capital alongside ₹500 crore via NCD placement.
09 · Reported developments
What changed operationally
Total business crossed the ₹1 lakh crore milestone during Q2 FY27, supported by robust growth in both advances and deposits.
Reported highest-ever quarterly PAT of ₹218.04 crore, reflecting strong operational recovery.
10 · Pressure points & risks
What is not going smoothly
Net interest margin contracted by 55 basis points quarter-on-quarter to 6.69% in Q2 FY27.
11 · Items worth noticing
The line items that can distort a quick read
The bank reversed excess provisions amounting to ₹84.62 crore to the profit and loss account on account of the sale of non-performing advances to an Asset Reconstruction Company (ARC).
Income from investments, including dividend income and net of MTM impact, stood at ₹27 crore for the quarter.
12 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Net cash generated from operating activities for the half year ended September 30, 2026, was ₹506.79 crore.
Liquidity Coverage Ratio (LCR) stood at 173.30% as of September 30, 2026.
Capital allocation & funding
Total deposits grew by 19% year-on-year and 7% quarter-on-quarter, crossing ₹50,000 crore to stand at ₹52,48,272.30 lakh (₹52,482.72 crore) with a CASA ratio of 26%.
Total borrowings stood at ₹6,88,581.00 lakh (₹6,885.81 crore) as of September 30, 2026.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
Registered Office Relocation
The Board of Directors approved shifting the registered office of the bank within Chennai from Spencer Plaza to Equitas Towers, Mount Road, Little Mount, Saidapet, effective October 30, 2026.
Reported update
Chairman Re-appointment
The board approved the re-appointment of Mr. Anil Kumar Sharma as Part-Time Chairman for a further three-year term starting April 25, 2027, subject to RBI approval.
14 · Previous-quarter changes
What changed since the previous quarter
Gross advances grew by 6% quarter-on-quarter in Q2 FY27, while total deposits expanded by 7% sequentially.
15 · Key Q&A
The quarter, answered directly
What does Equitas Small Finance Bank do?
Equitas Small Finance Bank operates as a scheduled commercial small finance bank offering retail banking, microfinance, wholesale banking, and treasury operations across India. Its primary business model focuses on providing credit and deposit products to unbanked and underbanked micro and small entrepreneurs, individuals with limited access to formal banking channels, as well as mass-affluent and SME segments.
What is the clearest takeaway from Quarter ended?
Equitas Small Finance Bank crossed the ₹1 lakh crore milestone for total business during the quarter ended September 30, 2026, driven by sustained loan expansion and deposit mobilization.
What drove earnings or loan-book movement?
Interest earned on advances and bills rose to ₹1,817.55 crore during Q2 FY27, up from ₹1,410.40 crore in Q2 FY26 and ₹1,754.65 crore in Q1 FY27.
What mattered most for margins, funding or credit cost?
Cost of funds increased by 7 basis points quarter-on-quarter to 7.12% in Q2 FY27 from 7.05% in Q1 FY27.
What changed operationally beyond the headline numbers?
Gross NPA improved by 13 basis points sequentially to 2.29% (₹1,086.30 crore) in Q2 FY27 from 2.42% in Q1 FY27. Net NPA improved to 0.70% (₹325.00 crore).
What are the main pressure points disclosed for the quarter?
Net interest margin contracted by 55 basis points quarter-on-quarter to 6.69% in Q2 FY27.
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 Trajectory: Monitor subsequent trends in Gross and Net NPA ratios and credit cost stabilization.
- 02
Margin Stabilization: Track net interest margins and cost of funds movements against lending yield adjustments.
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