SBI Q1FY27: Consolidated PAT Up 13.7% YoY to ₹24,113 Cr as Provisions Undershoot Street Fears

On a consolidated basis (primary), State Bank of India's net profit for the period was ₹24,579 Cr in Q1 FY27 (quarter ended June 30, 2026), up 13.7% YoY from ₹21,627 Cr and 21.9% QoQ from ₹20,161 Cr; profit attributable to shareholders after minority interest was ₹24,113 Cr, also up 13.7% YoY. Standalone PAT was ₹21,121 Cr, up 10.2% YoY from ₹19,160 Cr. Consolidated total income rose 8.4% YoY to ₹1,80,062 Cr on interest income of ₹1,36,240 Cr (+8.4% YoY). There were no exceptional items in either the current or year-ago quarter, so reported and adjusted YoY growth are identical. The beat was driven more by contained provisioning than by a topline surprise. Standalone provisions of ₹5,047 Cr rose just 6.0% YoY against a Street-feared 20.7% jump to ₹5,744 Cr (brokerage estimates cited by Business Standard), keeping annualized credit cost near 27bps — well inside management's 50bps FY27 guidance. Margins, the quarter's central pre-result debate, held up rather than compressed: operating margin (operating profit/interest income) expanded to 28.4% from 27.4% YoY and 22.7% QoQ, and net margin rose to 13.7% of total income from 12.95% YoY, even as Motilal Oswal had modelled NIM near 2.84% on continued deposit repricing. Standalone net interest income (interest earned less interest expended) grew ~12.1% YoY and consolidated NII ~14.2% YoY, both roughly in line with or ahead of the ~13% YoY NII growth Street had penciled in (Equentis). Analyst views were split heading in: Kotak Institutional Equities had modelled a 10.4% profit decline to ₹17,160 Cr, while Systematix expected 13.3% growth to ₹21,713 Cr; the actual ₹21,121 Cr standalone print lands close to the bullish case, confirming profitability held up better than the median Street call and better than management's own prior caution implied. Asset quality improved alongside — gross NPA fell to 1.47% from 1.83% YoY (net NPA 0.38% vs 0.47%), with PCR at 74.2% (91.8% including AUCA). Standalone advances grew 19.0% YoY to ₹49.92 lakh Cr, comfortably ahead of management's guided 13-15% FY27 credit-growth range, while CET1 improved to 12.89% from 11.10% YoY — all before the ₹4,691 Cr AT1 bond raise (7.75% coupon) the bank closed in late July, after this quarter's cut-off. The quarter's other corporate action, subsidiary SBI Funds Management's July 21 listing, and the senior management changes flagged July 31 (visible in this filing's revised MD signatories) sit alongside, not directly tied to the P&L. The bank also transferred its entire ₹11,522.30 Cr Investment Fluctuation Reserve to General Reserve this quarter under RBI's May-2026 directive discontinuing the IFR requirement — a reserves reclassification with no P&L impact. Going into Q2 FY27, the key monitorable is whether domestic NIM — not separately disclosed in this filing — holds above management's guided 3% floor as the rate-cut cycle progresses, and whether the July AT1 raise shows up as a further lift to capital ratios next quarter. With credit cost tracking well inside guidance and credit growth running ahead of target, the print gives management room on both the P&L and capital fronts heading into the RBI's ECL provisioning transition it has flagged.