Equitas SFB Q2 PAT Soars 803% YoY to ₹218 Cr

Profit After Tax (PAT): ₹218 crore in Q2FY27, representing 803% YoY growth and 19% QoQ growth (Q2FY26: ₹24 crore, Q1FY27: ₹184 crore)
Return on Assets (RoA): 1.31% in Q2FY27, improved from 1.18% in Q1FY27 and 0.18% in Q2FY26
Return on Equity (RoE): 13.50% in Q2FY27, improved from 11.76% in Q1FY27 and 1.65% in Q2FY26
Net Interest Income: ₹1,026 crore in Q2FY27, showing 33% YoY growth but flat QoQ (Q2FY26: ₹773 crore, Q1FY27: ₹1,030 crore)
Net Interest Margin (NIM): 6.69% in Q2FY27, declined from 7.24% in Q1FY27 and 6.34% in Q2FY26
Other Income: ₹287 crore in Q2FY27, comprising Asset Fee Income (₹213 crore), Treasury & PSLC Fee Income (₹29 crore), and Liability & Distribution Income (₹45 crore)
Cost to Income Ratio: Improved to 5.49% in Q2FY27 from 5.61% in Q1FY27
Credit Cost: 0.94% in Q2FY27 (1.12% excluding ARC transaction), improved from 1.37% in Q1FY27

Gross Advances: ₹50,669 crore as of Q2FY27, showing 30% YoY growth and 6% QoQ growth
Advance Composition: Small Business Loans (39%), Vehicle Finance (22%), Housing Finance (13%), Micro Finance & Micro Loans (12%), MSE Finance (5%), NBFC (4%), Gold Loans (2%), Others (1%)
Disbursements: ₹7,450 crore in Q2FY27, showing 38% YoY growth and 10% QoQ growth
Non-MFI Disbursements: ₹6,161 crore in Q2FY27, showing 31% YoY growth and 13% QoQ growth
Product Performance: Gold loans grew 193% YoY, NBFC grew 104% YoY, MSE grew 38% YoY, Used Car grew 29% YoY, Used CV grew 21% YoY
Direct Assignment Outstanding: ₹579 crore as of Q2FY27

Gross NPA (GNPA): 2.29% in Q2FY27, improved from 2.42% in Q1FY27 and 2.92% in Q2FY26
Net NPA (NNPA): 0.70% in Q2FY27, improved from 0.71% in Q1FY27 and 0.98% in Q2FY26
Provision Coverage Ratio (PCR): 70.08% (86.73% including technical write-offs)
Net Slippages Ratio: 1.39% in Q2FY27, improved from 1.43% in Q1FY27
1-90 DPD: 7.24% for the bank, with Non-MFI portfolio at 8.08%
NPA Movement: Closing GNPA balance of ₹1,086.30 crore after ₹165.65 crore net slippages, ₹69.74 crore write-offs, and ₹110.00 crore ARC sale

Total Deposits: ₹52,483 crore as of Q2FY27, showing 19% YoY growth and 7% QoQ growth
Deposit Composition: CASA 26% (₹13,480 crore), Term Deposits 74% (₹39,003 crore including Certificate of Deposits of ₹2,376 crore)
Cost of Funds: 7.12% in Q2FY27, increased from 7.05% in Q1FY27 and 7.35% in Q2FY26
Retail Deposits: 68% of overall deposits
FCNR(B) Deposits: $138 million as of Q2FY27, including $110 million mobilized under RBI scheme
CD Ratio: 90.53% (80.27% after reducing refinance borrowings from advances)

Shareholders' Funds: CRAR 20.92% (Tier I 16.35%, Tier II 4.57%)
Tier-II Bonds: Raised ₹500 crore through issuance for 10-year tenure during the quarter
Credit Ratings: CD programme rated A1+, issuer rating AA-/Stable by India Ratings & CareEdge Ratings
Liquidity Coverage Ratio: 173.30% as of September 30, 2026
Investment Portfolio: ₹12,247 crore (SLR ₹11,090 crore, Non-SLR ₹1,157 crore)

ROA Guidance: Revised upward to ~1.35% for FY27 from previous guidance of 1.20%
Exit ROA: Expected to reach ~1.5% in Q4FY27
Advances Growth: Maintained at 25%+ for FY27
Cost to Income: Expected to moderate further in H2FY27
Credit Costs: Expected to normalize with marginal increase and stabilization towards H2FY27
MFI Portfolio: Expected to be maintained at around 10% of overall advances

IRDAI Consultation Paper: Potential impact estimated at ~₹45 crore on FY26 insurance distribution income of ~₹90 crore
UPI Merchant MDR: Potential fee income opportunity of ~₹18 crore per annum based on current volumes
El Nino/Monsoon Impact: MFI exposure to drought-affected geographies in MH & KA is ~2.9% of overall advances, with stable collection efficiency
Management Appointment: Mr. Sivaraman appointed as Head - Operations (SMP) effective September 7, 2026