Jana SFB Q1: PAT +52% YoY to ₹155 Cr on margin gains & lower provisions, but trails ≥80% FY27 guide

Jana Small Finance Bank opened FY27 with standalone net profit of ₹155.23 Cr for the June quarter, up 52.3% YoY (₹101.93 Cr) and 11% QoQ (₹139.82 Cr), on interest earned of ₹1,514.53 Cr (+21% YoY) and total income of ₹1,741.45 Cr. EPS rose to ₹14.74 from ₹9.69 a year ago. The profit growth outpaced topline growth because the bank pays no current tax (nil in both periods, utilising accumulated DTA) and because credit costs fell: provisions dropped to ₹177.93 Cr from ₹186.71 Cr YoY and ₹194.90 Cr in Q4. Pre-provision operating profit was ₹333.16 Cr, up 15.4% YoY but flat sequentially. There are no exceptional or one-off items, so reported and adjusted growth are identical at +52.3%. Margins and returns are the real story. Net profit margin expanded to 8.91% from 6.72% a year ago (8.18% in Q4), and annualised RoA improved to 1.35% from 1.07% — already ahead of the street's 1.2% FY27E return assumption. Asset quality strengthened, with gross NPAs at 2.39% (2.91% YoY) and net NPAs at 0.91%. Capital adequacy rose to 20.18% (Basel II), lifted 43 bps by the ₹102.76 Cr received as 25% subscription on 88.43 lakh warrants issued during the quarter (balance 75% due within 18 months on conversion) — the same warrant issue flagged in this quarter's corporate actions. The caveat is pace versus expectations. Management guided to >80% FY27 PAT growth on the last concall (deposit growth 23-25%, gross loan growth 19-21%, secured book +25-30%) and analyst previews modelled >90% FY27E PAT growth on a low base; Q1's +52% YoY, while strong in absolute terms, is running below both, implying an H2-weighted delivery reliant on the guided decline in cost of funds and operating leverage. Management gives no separate quarterly guidance. A CCO resignation was disclosed during the quarter and the parent (Jana Holdings) sold TVS Motors shares — neither bears on the bank's operating numbers. Consolidation is not applicable as the bank has no subsidiaries.