Suryoday SFB Q1: PAT more than doubles to ₹75 Cr YoY as credit costs ease, net NPA crashes to 1.3%

Suryoday Small Finance Bank reported a strong Q1 FY27 (standalone; the bank has no subsidiaries, so no consolidated accounts). Net profit rose 113% YoY to ₹75.18 Cr (₹35.28 Cr a year ago) and 51% QoQ, on interest earned of ₹622.36 Cr (+25.7% YoY, +3.5% QoQ) and total income of ₹770.22 Cr. EPS was ₹7.07 versus ₹3.32 a year ago. Operating profit before provisions grew 27% YoY to ₹138.56 Cr, so the print is not purely a provisioning story — but lower credit costs did the heavy lifting on the bottom line, with provisions at ₹36.66 Cr against ₹62.09 Cr a year ago. Net interest margin, proxied by net profit margin, expanded to 9.8% from 5.8% YoY. The swing factor is the ₹387.45 Cr CGFMU credit-guarantee claim (net of recovery) that the bank recognised as virtually certain at 30-Jun and realised in full on 1-Jul-26. Rather than showing up as a one-off gain, it worked through the asset side: net NPAs fell to ₹169.55 Cr from ₹541.88 Cr in Q4, dropping the net NPA ratio to 1.27% from 4.21% QoQ (and 5.64% YoY), while gross NPA held broadly flat at 6.60%. Normalising credit costs back to the year-ago level would put adjusted PAT growth nearer ~60% YoY — still strong, but well below the 113% headline, and the sharp net-NPA improvement is unlikely to repeat at this scale next quarter. Growth context supports the print: the bank's Q1 update flagged gross advances up 32.5% YoY to ₹14,374 Cr, deposits up 29.4% to ₹14,634 Cr and CASA up 53.4% to ₹3,072 Cr (CASA ratio 21.0%). Capital adequacy stood at 20.03% and RoA improved to 0.38% (from 0.22% YoY). Management gives no formal quarterly guidance and there is no prior concall on record; consensus is thin (one analyst, ~96.6% FY27 profit-growth estimate per Trendlyne, no Q1 poll), so the quarter can't be cleanly graded beat/miss — the +113% YoY print does run ahead of that full-year pace. The board also fixed a 17-Jul record date for the final dividend and is seeking approval for a ₹500 Cr fundraise. The concall is on 24-Jul-26.