Equitas Small Finance Bank Limited (EQUITASBNK) Earnings Call Transcripts

Equitas Small Finance Bank Limited's Latest Earnings Call - Q4 FY2026

In Q4 FY '26, Equitas Small Finance Bank reported a significant increase in profitability, achieving a record PAT of INR 213 crores, a 406% year-on-year growth. The bank's NIM improved to 7.29%, up 57 bps from the previous quarter, driven by robust advances growth of 22% YoY and a strong focus on asset quality, with credit costs declining to 1.11%. Management provided guidance for FY '27, projecting a normalized credit cost of around 1.5% and an exit ROA of approximately 1.5%, indicating a cautious outlook amidst potential macroeconomic challenges.

Reported metrics

Guidance from management

Management expects a credit cost normalization to around 1.5% and an exit ROA of approximately 1.5% for FY '27, indicating a cautious outlook amidst potential macroeconomic challenges.

What management said

Right. So NBFC for us is a filler. It's not a product where we have a target to lend. It's a filler. So wherever we have surplus money, we lend to the NBFCs because otherwise, we would have to park it in government securities. So last year, we had some excess liquidity at some point. In fact, our CD ratio had gone down as low as 79% at some point in time during the last year, and we were stuck with some excess liquid...

See, bulk, we got it noncallable. If you see year-on-year, till quarter 3, we were spreading it and building a retail portfolio. And there was an opportunity available at bulk and noncallable across segment, government, insti and financial institution. It is not skewed towards one segment. So we leveraged what we had at that point of time and built it up. But our entire strategy for insti as always is hold and grow s...

What analysts pressed on

Analysts raised concerns about the sustainability of NIM improvements and potential impacts from geopolitical tensions on asset quality. There were questions regarding the bank's strategy for managing credit risks in light of rising fuel prices affecting commercial vehicle borrowers.

Main topics on the call

• Record Profitability — Equitas achieved a PAT of INR 213 crores in Q4, marking a 406% increase YoY. This is the highest quarterly profit in the bank's history, reflecting strong operational performance.
• NIM Improvement — The bank's NIM rose to 7.29%, a 57 bps increase from Q3 FY '26, attributed to higher income levels and reduced cost of funds. Management noted, 'The NIM continued to show an upward trajectory.'
• Asset Quality Enhancement — Gross NPA improved to 2.49%, down 13 bps QoQ, while net NPA decreased to 0.68%. Management highlighted, 'Credit cost at 1.11% for Q4 came in lowest compared to the previous 8 quarters.'
• Advances Growth — Gross advances grew by 22% YoY, with a record disbursement of INR 7,347 crores in Q4. Management expressed confidence in maintaining a growth trajectory of 20%+ for FY '27.

Read the full Equitas Small Finance Bank Limited transcript (Q4 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 14 Equitas Small Finance Bank Limited earnings call transcripts on record, spanning July 31, 2021 to July 29, 2026. Based on this history, Equitas Small Finance Bank Limited reports semi-annually. The most recent call on file is dated July 29, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

EQUITASBNK

Exchange

NSEI

Country

IN

Sector

Financials

Industry

Banks

Calls on record

14

First call

July 31, 2021

Most recent

July 29, 2026

Reporting cadence

semi-annually