Stock Report

ESAF Small Finance Bank Posts Turnaround Performance with Rs 8,008 Lakh Net Profit in Q1 FY27

Posted On : 2026-07-31 22:48:48( TIMEZONE : IST )

ESAF Small Finance Bank Limited has published its unaudited financial results for the first quarter ended June 30, 2026, registering a sharp operational turnaround and returning to profitability compared to the corresponding period in the previous fiscal year.

Top-Line Expansion Driven by Core Lending and Retail Operations

The bank reported total income of Rs 1,34,601 lakh for the quarter ended June 30, 2026, representing a 31.53% growth compared to Rs 1,02,337 lakh recorded in Q1 FY26 (quarter ended June 30, 2025). On a sequential basis, total income expanded by 12.50% from Rs 1,19,645 lakh in Q4 FY26.

Interest earned during the quarter grew to Rs 1,09,777 lakh (up from Rs 82,823 lakh in Q1 FY26 and Rs 99,508 lakh in Q4 FY26). Key components of interest income included:

Interest/discount on advances/bills: Rs 99,239 lakh

Income on investments: Rs 10,366 lakh

Interest on balances with RBI and other inter-bank funds: Rs 172 lakh

Other income for the quarter stood at Rs 24,824 lakh, up from Rs 19,514 lakh in the same period last year.

Operating Expenses and Margin Trajectory

The bank's total expenditure (excluding provisions and contingencies) stood at Rs 99,703 lakh for Q1 FY27, up from Rs 89,845 lakh in Q1 FY26.

Interest Expended: Rose to Rs 51,369 lakh, compared to Rs 45,036 lakh in Q1 FY26.

Operating Expenses: Reached Rs 48,334 lakh, comprising Rs 17,979 lakh in employee costs and Rs 30,355 lakh in other operating expenses.

Operating profit before provisions and contingencies surged to Rs 34,898 lakh, nearly tripling from Rs 12,492 lakh reported in Q1 FY26 and rising 44.63% sequentially from Rs 24,129 lakh in Q4 FY26. Provisions (other than tax) and contingencies were recorded at Rs 24,196 lakh.

Net Profit and Asset Quality Realignment

ESAF Small Finance Bank posted a net profit after tax of Rs 8,008 lakh for Q1 FY27, turning around from a net loss of Rs 8,122 lakh in Q1 FY26 and improving on the Rs 2,351 lakh net profit reported in Q4 FY26. Tax expenses for the quarter came in at Rs 2,694 lakh.

Basic and diluted earnings per share (EPS) for the quarter improved to Rs 1.55 per equity share (face value Rs 10/- each), up from negative Rs 1.58 in Q1 FY26 and Rs 0.46 in Q4 FY26.

Asset quality indicators demonstrated clear strengthening:

Gross NPA: Stood at Rs 1,25,334 lakh, representing 5.40% of gross advances, compared to 7.48% (Rs 1,36,363 lakh) in Q1 FY26 and 5.41% in Q4 FY26.

Net NPA: Reduced significantly to Rs 18,412 lakh, representing 0.83% of net advances, down from 3.77% (Rs 66,090 lakh) in Q1 FY26 and 1.77% in Q4 FY26.

Capital Adequacy Ratio (Basel II): Strengthened to 23.86%, up from 22.74% in Q1 FY26 and 22.22% in Q4 FY26.

Return on Assets (Annualized): Reached 0.26%, recovering from negative 0.30% in Q1 FY26.

Net Worth: Stood at Rs 1,86,382 lakh (Rs 1,863.82 crore), with paid-up equity share capital at Rs 51,595 lakh.

Segment Performance Analysis

Segment Revenue

Retail Banking: Rs 1,14,136 lakh (up from Rs 81,636 lakh in Q1 FY26)

Treasury Operations: Rs 15,430 lakh (up from Rs 13,754 lakh in Q1 FY26)

Wholesale Banking: Rs 2,221 lakh

Other Banking Operations: Rs 2,814 lakh

Segment Profitability (Profit / Loss Before Tax)

Retail Banking: Rebounded to a profit of Rs 2,990 lakh, compared to segment losses of Rs 18,100 lakh in Q1 FY26 and Rs 2,826 lakh in Q4 FY26.

Treasury Operations: Generated Rs 5,051 lakh in segment profit, up from Rs 2,677 lakh in Q1 FY26.

Other Banking Operations: Contributed Rs 2,038 lakh.

Wholesale Banking: Recorded Rs 623 lakh in segment results.

Total assets of the bank expanded to Rs 31,42,922 lakh as of June 30, 2026, up from Rs 26,70,347 lakh as of June 30, 2025, with Retail Banking assets accounting for Rs 22,37,431 lakh of the overall asset base.

Shares of ESAF Small Finance Bank Limited was last trading in BSE at Rs. 42.35 as compared to the previous close of Rs. 36.49. The total number of shares traded during the day was 1272305 in over 3482 trades.

The stock hit an intraday high of Rs. 42.95 and intraday low of 35.80. The net turnover during the day was Rs. 51423613.00.