Equitas SFB Q2 PAT at ₹218 Cr, YoY turnaround as provisions halve, GNPA to 2.29%

Equitas Small Finance Bank's standalone PAT came in at ₹218.04 Cr for Q2 FY27, up from just ₹24.14 Cr a year ago (+803% YoY) and up 18.8% sequentially from ₹183.61 Cr in Q1 FY27. The YoY jump is a base effect — Q2 FY26 profit was crushed by elevated microfinance-led credit costs — so the cleaner read is the sequential trend: a second straight profitable quarter with PAT still climbing. Total income was ₹2,357.51 Cr (+27.7% YoY, +5.4% QoQ) on interest earned of ₹2,066.00 Cr, and NPM expanded to 9.25% from 8.29% in Q1 and 1.31% a year ago. This beat our own pre-result expectation of ₹190-200 Cr net profit, even as gross advances (₹50,694 Cr) and deposits (₹52,483 Cr) both landed a touch under the ₹51-52K Cr / ₹53-54K Cr ranges flagged going in.

The swing was driven almost entirely by provisions, which fell to ₹114.99 Cr from ₹207.02 Cr a year ago and ₹160.66 Cr in Q1 — confirming management's ~1.5% FY27 credit-cost guidance is being met comfortably. Asset quality backs this up: GNPA eased to 2.29% (Q1: 2.42%, year-ago: 2.92%) and NNPA to 0.70% (Q1: 0.71%, year-ago: 0.98%). Pre-provision operating profit rose to ₹402.37 Cr (+67.3% YoY), but OPM (operating profit/interest earned) actually eased to 19.48% from 20.65% in Q1, so the pre-provision growth engine slowed a touch sequentially even as the bottom line kept improving on lower credit costs.

The stock went into the print at ₹67.86, up 2.8% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.

Advances grew 29.58% YoY to ₹50,694 Cr — ahead of management's 20%+ FY27 guidance and above even Q1's 27% pace. Capital adequacy rose to 20.92% (19.44% in Q1) after the bank raised ₹500 Cr of Tier II capital via NCDs listed September 25, 2026, which also bolsters the capital-raise argument in the Street's bull case. Net interest margin is not disclosed in this regulatory filing — management had guided to 7.0-7.1% moderating from Q1's 7.24% — so that watch item stays open pending the press release/concall. A GST matter was also resolved favourably this quarter, with the proposed tax demand cut 95.5%, trimming a contingent liability. No company press release was available alongside this filing to check management's own framing of the quarter against these numbers.