RBL Bank Q2 FY27 Results (NSE: RBLBANK)
Signal: Earnings grew
The read
The operating inflection is real: consolidated operating profit rose 90.2% YoY to ₹141,661 lakh on 21.6% income growth and 3.1% operating-expense growth, but the shareholder-level recovery is muted because PAT growth of 159.0% translated into only 2.2% EPS growth after the equity infusion; Treasury supplied the main profit swing while Retail Banking remained loss-making.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,401.65 Cr | +21.6% | +13.4% |
| EBIT | ₹1,416.61 Cr | +90.2% | |
| Net profit | ₹498.36 Cr | +159.0% | |
| EPS | ₹3.22 | +2.2% | |
| EBIT margin | 0% |
P&L walk
Total income rose to ₹540,165 lakh, +21.6% YoY and +13.4% QoQ, while operating profit rose to ₹141,661 lakh, +90.2% YoY, as operating expenses grew only 3.1% YoY; provisions increased 53.4% YoY, yet PAT reached ₹49,836 lakh, +159.0%, while EPS rose only 2.2% because of the expanded share base.
Segments
Treasury drove the improvement, moving from a ₹779 lakh loss YoY to a ₹47,980 lakh profit, while Retail Banking remained the drag with a ₹16,045 lakh loss versus a ₹499 lakh loss YoY; Corporate/Wholesale Banking profit rose to ₹25,199 lakh from ₹19,260 lakh.
Key positives
- Consolidated total income reached ₹540,165 lakh, +21.6% YoY and +13.4% QoQ, accelerating from +7.0% YoY in Q4FY26.
- NII increased 37.4% YoY to ₹213,138 lakh as interest earned grew 23.2% while interest expended grew 12.0%.
- Operating profit rose 90.2% YoY to ₹141,661 lakh, with operating expenses up only 3.1% YoY to ₹179,432 lakh.
- Asset quality improved: gross NPA declined to 1.02% from 2.32% YoY and net NPA to 0.29% from 0.57%.
- Treasury turned around from a ₹779 lakh segment loss YoY to a ₹47,980 lakh profit, while capital adequacy stood at 30.10%.
Key concerns
- Retail Banking remained loss-making at ₹16,045 lakh in Q2FY27 versus a ₹499 lakh loss YoY, despite retail segment revenue rising 8.4% YoY to ₹449,184 lakh.
- Provisions increased 53.4% YoY to ₹76,653 lakh, limiting the conversion of operating-profit growth into PAT.
- H1 operating cash flow was negative ₹2,104,051 lakh versus positive ₹61,093 lakh YoY, mainly due to a ₹2,964,269 lakh increase in advances and ₹1,092,723 lakh increase in investments.
- EPS rose only 2.2% YoY to ₹3.22 despite PAT growth of 159.0%, so the enlarged equity base materially diluted per-share earnings.
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