SBI Q2 FY27 Results (NSE: SBIN)
Signal: Earnings grew
The read
The trajectory is core-profit softness rather than an operating acceleration: consolidated operating profit fell 1.6% YoY to ₹31,591.84 crore and margin contracted to 16.8%, while PAT growth of 20.0% to ₹25,361.16 crore was lifted by a ₹6,879.26 crore exceptional gain and lower provisions.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,87,756.19 Cr | +6.7% | +4.3% |
| EBIT | ₹31,591.84 Cr | -1.6% | |
| Net profit | ₹25,361.16 Cr | +20.0% | |
| EPS | ₹27.48 | +20.5% | |
| EBIT margin | 0% |
P&L walk
Consolidated income reached ₹1,87,756.19 crore, +6.7% YoY and +4.3% QoQ, but operating profit declined to ₹31,591.84 crore, -1.6% YoY and -18.2% QoQ; PAT rose to ₹25,361.16 crore, +20.0% YoY, aided by a ₹6,879.26 crore exceptional gain.
Segments
Retail Banking was the main consolidated earnings driver at ₹17,262.74 crore of segment result, while Corporate/Wholesale Banking contributed ₹7,590.70 crore; Treasury result fell to ₹1,316.23 crore from ₹4,336.03 crore YoY, dragging on the mix.
Key positives
- Consolidated total income rose to ₹1,87,756.19 crore, +6.7% YoY and +4.3% QoQ, reversing the recent deceleration in reported revenue growth from +4.6% in Q3FY26 and +3.3% in Q4FY26.
- Gross NPA improved to 0.36% from 0.42% YoY, while provisions declined 24.2% YoY to ₹4,915.69 crore.
- Retail Banking generated ₹17,262.74 crore of segment result and remained the largest earnings contributor.
- Capital adequacy was 16.09% and CET1 was 13.34%, providing a stronger capital cushion than the year-ago 14.62% and 11.47% levels.
Key concerns
- Consolidated operating profit fell 1.6% YoY to ₹31,591.84 crore and operating margin compressed to 16.8%, despite total income growth of 6.7%.
- PAT growth of 20.0% to ₹25,361.16 crore includes a ₹6,879.26 crore exceptional gain from the SBI Funds Management stake sale, reducing the quality and repeatability of reported earnings.
- Treasury segment result dropped to ₹1,316.23 crore from ₹4,336.03 crore YoY, a ₹3,019.80 crore decline that offset gains elsewhere.
- H1 operating cash flow declined 29.4% YoY to ₹35,829.64 crore while reported H1 profit increased, warranting monitoring of cash conversion.
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