KARURVYSYA
Small CapKarur Vysya Bank Limited
Financial Services
Karur Vysya Bank Limited is an Indian private sector bank. The Q4 FY26 investor presentation highlights strong financial performance with significant growth in advances and deposits, improved profitability metrics, and maintained asset quality. The bank emphasizes its RAM-led growth strategy and comfortable capital adequacy.
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.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
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 +15% YoY · PAT +41% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,904 Cr | +15.4% | +3.9% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹725 Cr | +41.3% | +5.1% |
| PAT margin | 25.0% | +458 bps | +27 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
Karur Vysya Bank reports strong Q4 FY26 with Net Profit up 41% YoY and 5% QoQ, driven by robust advances growth (17% YoY) and improved NIM (4.25%). Asset quality remains strong with GNPA at 0.75%.
The bank reports strong Q4 and FY26 results, with robust advances and deposit growth, improved NIM, and stable asset quality. However, the sustainability of high NIMs and ROA, especially with increasing competition and potential shifts in borrowing costs, warrants close monitoring. The reliance on secured retail products is a positive.
Gross Advance Mix by Segment (Mar-26)
Latest issuer-disclosed distribution across 4 reported categories.
RAM-led Growth
RAM Verticals (Retail, Agri, MSME) grew by 18% YoY to ₹85,260 Cr, contributing to consistent and credible progress.
Retail-Jewel Loans
Retail-Jewel loans grew by 61% YoY to ₹5,560 Cr, anchoring retail portfolio growth.
Mortgage (LAP) Loans
Mortgage (LAP) loans grew by 56% YoY to ₹9,222 Cr, contributing significantly to retail growth.
MSME Advances
MSME advances growth is driven by focused execution across identified high potential branches.
RM Channel Introduction
RM channel has been introduced for small ticket loans in MSME hotspots to drive growth.
CRM Module Implementation
CRM module has been introduced for sharing leads, monitoring, and timely conversion into business.
Consistent Growth & Profitability
The bank highlights 'Consistent Growth with Sustained Profitability and Asset Quality' as an overarching theme.
Comfortable Capital Position
Management states that the 'Capital position remains comfortable to support growth'.
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.
For financial services, both year-on-year (YoY) growth is crucial for assessing long-term trends and seasonal impacts, while quarter-on-quarter (QoQ) provides insight into sequential momentum, utilization, spreads, and project execution.
Gross Advances Growth
Gross Advances grew by 17% YoY and 2% QoQ to ₹98,754 Cr.
Deposits Growth
Deposits grew by 13% YoY and 1% QoQ to ₹1,15,666 Cr.
Net Interest Margin (NIM)
NIM for Q4 FY26 was 4.25% (26 bps QoQ increase). Full year FY26 NIM was 3.97%.
Cost of Funds
Cost of Funds for Q4 FY26 was 5.38% (vs 5.75% in Mar-25).
Product Tweaking & New Launches
Management is focused on 'Tweaking of existing products, launch of new products and cash flow-based lending model' for MSME growth.
Digital Banking Focus
The presentation includes a section on 'Digital Banking and ESG', indicating a focus on these areas.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Interest Margin (NIM) | Q4 FY26: 4.25% | Sustainability of NIM given potential shifts in borrowing costs and competitive pressures. |
| Gross Advances Growth | 17% YoY | Continued momentum in RAM-led growth, particularly in Retail and MSME segments. |
| Asset Quality (GNPA/NNPA) | GNPA 0.75%, NNPA 0.19% | Maintenance of low NPA levels, especially with increasing loan book size and any changes in economic conditions. |
| Return on Assets (ROA) | Q4 FY26: 2.10% | Ability to sustain high ROA amidst operational costs and provisioning requirements. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
43NeutralSMA20 -4.1% / mo
Technical chart
KARURVYSYAdaily · 1Y+16.2%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 47.
- SMA20 falling (~1.6% over last month) — short-term momentum negative.
- RSI(14) at 47 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 17% off 52W high · 21% above 52W low.
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
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 66.5%.
- Valuation contributes 21/30 to the score.
- Growth contributes 16/25 to the score.
Main drags
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
- Quality is weaker at 9/20; verify the latest quarterly trend.
- Balance sheet is weaker at 7/15; verify the latest quarterly trend.
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.
Mixed Trust: Claim history is still being built. It ranks around the 57th percentile of the scored universe and 75th percentile within Financial Services. Main check: cash conversion is weak at 52/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-554 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 75th pctile, median 62 · Small: 62nd pctile, median 65
77 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed 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.
- ▸Debt/equity is 0.02.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Operating cash flow is negative at ₹-554 Cr.
- ▸Promoter holding is only 2.1%.
- ▸ROCE is low at 7.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 10.80
- P/B
- 1.91
- EV/EBITDA
- —
- Market Cap
- 26999.00Cr
Profitability
- ROE
- 19.30%
- ROCE
- 7.64%
- ROA
- 1.84%
- Dividend Y
- 0.78%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- 48.00%
- Revenue 3Y
- 19.00%
- EPS 3Y
- 31.00%
Balance Sheet
- Debt/Equity
- 0.02
- Interest Coverage
- —
- Altman Z
- 2.27
- Book Value
- 146.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -554.00 Cr
- EPS TTM
- 25.97
Shareholding
- Promoter Hold
- 2.07%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 56%
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.