SBI Q1 FY27 Results (NSE: SBIN)
Signal: Earnings grew
The read
The quarter's trajectory is mixed: consolidated income growth decelerated to 7.8% YoY from 10.4% in Q3FY25 and 8.0% in Q4FY25, while pre-provision operating profit grew only 1.7% YoY and fell 13.8% QoQ; the positive offset is improving credit quality, with GNPA falling to 1.47% from 1.83% and NNPA to 0.38% from 0.47%, allowing PAT to rise 13.7% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,80,061.86 Cr | +7.8% | -0.6% |
| EBIT | ₹29,736.90 Cr | +1.7% | |
| Net profit | ₹24,113.00 Cr | +13.7% | |
| EPS | ₹26.12 | +9.9% | |
| EBIT margin | 0 |
P&L walk
Consolidated total income of ₹1,80,061.86 crore rose 7.8% YoY, but pre-provision operating profit of ₹29,736.90 crore grew only 1.7% and fell 13.8% QoQ; lower gross and net NPAs supported PAT of ₹24,113.00 crore, up 13.7% YoY.
Segments
The consolidated group materially outperformed the parent, with consolidated PAT of ₹24,113.00 crore versus standalone PAT of ₹21,121.22 crore and YoY growth of 13.7% versus 10.3%, indicating subsidiaries, associates and other group businesses lifted reported earnings.
Key positives
- Advances reached ₹50,95,828.84 crore, +18.9% YoY, substantially ahead of deposit growth of 9.8%, while GNPA improved to 1.47% from 1.83%.
- NNPA declined to 0.38% from 0.47% and PCR was 74.20%, supporting PAT of ₹24,113.00 crore, +13.7% YoY.
- Capital adequacy strengthened to 15.67% from 14.63%, providing balance-sheet capacity for continued loan growth.
Key concerns
- Consolidated operating profit grew only 1.7% YoY to ₹29,736.90 crore versus total-income growth of 7.8%, and fell 13.8% QoQ, showing weak pre-provision earnings momentum.
- Deposits grew 9.8% YoY versus advances growth of 18.9%, increasing reliance on alternative funding and potentially pressuring future funding costs.
- Standalone provisions rose to ₹5,046.77 crore from ₹2,472.16 crore QoQ even as reported asset-quality ratios improved.
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