EQUITASBNK
Micro CapEquitas Small Finance Bank Limited
Financial Services
Equitas Small Finance Bank Limited provides a full range of banking products and services across 18 states and UTs with 1060 banking outlets. It focuses on underserved and unbanked market segments, offering microfinance, small business loans, housing finance, and vehicle finance.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 75/100Rev +12% YoY · PAT +407% YoY · +9% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,836 Cr | +11.7% | +8.5% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹213 Cr | +407.1% | +136.7% |
| PAT margin | 11.6% | +905 bps | +628 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Equitas SFB reports strong Q4FY26 with PAT up 406% YoY and 136% QoQ, driven by robust advances growth (22% YoY), significant NIM expansion to 7.29%, and improved asset quality with GNPA at 2.49% and NNPA at 0.68%.
The bank delivered strong Q4FY26 results, exceeding its own RoA guidance. Asset quality showed significant improvement, and key growth drivers like non-MFI and gold loans performed well. Management's positive FY27 outlook, including 20%+ advances growth and higher RoA targets, supports the current investment thesis.
Gross Advances by Product (Q4FY26)
Latest issuer-disclosed distribution across 8 reported categories.
Non-MFI Portfolio Growth
Non-MFI book grew 21% YoY, led by 21% growth in HF, 24% in MSE, and 180% in Gold loan.
Gold Loan Portfolio
Gold loan portfolio crossed Rs. 850 Cr during the quarter, registering 180% YoY growth.
Secured Business Loans (SBL)
Secured BL advances, part of SBL, grew 27% YoY, contributing 33% of the overall SBL portfolio.
Used Vehicle Finance
Used Car and Used CV Advances registered growth of 31% YoY and 25% YoY respectively, aligning with the plan to shift towards used segments.
Declining Cost of Funds
The cost of funds has commenced a downward trajectory and is anticipated to decline further.
Improved Collection Efficiencies
Credit cost is expected to taper down, supported by improved collection efficiencies, with MFI X-bucket CE at 99.71%.
MFI Asset Quality Improvement
MFI DPD (1-90) reduced to 1.43% in Q4FY26 from 7.82% in Q4FY25, indicating credit stress has largely stabilized.
CASA Ratio Decline
CASA Ratio declined to 26% in Q4FY26 from 29% in Q4FY25.
Expected Increase in Cost of Funds
Following upward revisions in SA (Feb’26) and TD rates (Mar’26), cost of funds is expected to increase in Q1FY27.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth and annual trends in a financial services business. QoQ comparison is vital for tracking sequential momentum in asset quality, NIM, cost of funds, and disbursement trends, which are key for a bank.
Gross Advances Growth
Gross Advances grew by 22% YoY to Rs. 46,165 Cr and 7% QoQ.
Disbursements Growth
Overall Disbursements were Rs. 7,347 Cr in Q4FY26, a growth of 72% YoY and 12% QoQ. Non-MFI Disbursements grew 49% YoY and 8% QoQ.
Net Interest Margin (NIM)
NIM significantly improved by ~57 bps QoQ to 7.29% in Q4FY26, driven by increased interest income from advances and reduced cost of funds.
Cost of Funds
Cost of Funds for Q4FY26 reduced by 19 bps QoQ to 6.94% (from 7.13% in Q3FY26) and by over 50 bps YoY (from 7.54% in Q4FY25).
FY27 Advances Growth Target
Management expects 20%+ growth in overall advances for FY27, driven by growth across products.
FY27 RoA Target
Management expects to achieve an exit RoA of about 1.5% in Q4FY27, with a full year FY27 RoA of ~1.2%.
MFI Advances Mix
MFI advances are expected to be maintained at around 10% of the overall advances.
Cost to Income Moderation
Cost to Income is expected to moderate further in H2FY27 driven by operating leverage with growth in advances.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Overall Advances Growth | 22% YoY (Q4FY26) | Sustaining 20%+ growth for FY27 as guided by management. |
| Return on Assets (RoA) | 1.46% (Q4FY26) | Achieving ~1.2% for full year FY27 and 1.5% exit RoA in Q4FY27. |
| Cost to Income Ratio | 67.52% (Q4FY26) | Further moderation in H2FY27, despite Q1FY27 being elevated due to annual increments. |
| MFI Advances Mix | 12% (Q4FY26) | Maintenance at around 10% of overall advances as per management's expectation. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
60BullishSMA20 +10.0% / mo · near 52W high
Technical chart
EQUITASBNKdaily · 5Y+28.5%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 67.
- SMA20 rising (~3.4% over last month) — short-term momentum positive.
- RSI(14) at 67 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Cash flow contributes 3/10 to the score.
- Balance sheet contributes 3/15 to the score.
- Growth contributes 4/25 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -3756.9%.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 11th percentile of the scored universe and 20th percentile within Financial Services. Main check: financial discipline is weak at 28/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-3316 Cr.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Financial Services: 20th pctile, median 62 · Micro: 8th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸8/8 recent quarters had positive YoY revenue growth.
Trust risks
- ▸Operating cash flow is negative at ₹-3316 Cr.
- ▸Altman Z is 1.72.
- ▸5 recent quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 6.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 83.60
- P/B
- 1.40
- EV/EBITDA
- —
- Market Cap
- 8616.00Cr
Profitability
- ROE
- 1.69%
- ROCE
- 6.44%
- ROA
- 0.17%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- -23.00%
- Revenue 3Y
- 18.00%
- EPS 3Y
- -44.00%
Balance Sheet
- Debt/Equity
- 0.12
- Interest Coverage
- —
- Altman Z
- 1.76
- Book Value
- 53.70
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -3316.00 Cr
- EPS TTM
- 0.90
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 93%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.