YES Bank Q1: consolidated PAT ₹1,072 Cr, +33% YoY on margin gains & lower tax; flat QoQ
PAT +32.54% YoY · revenue +5.91% · margins expanding · beat vs street
₹8,054.49 Cr
+5.91% YoY
₹1,071.8 Cr
+32.54% YoY
10.8%
+2.2pp YoY
₹0.34
YES Bank reported a margin-led June quarter. Consolidated net profit rose ~32.5% YoY to ₹1,072 Cr on interest income of ₹8,054 Cr (+5.9% YoY) and total income of ₹9,925 Cr; net interest income of ₹2,785 Cr beat the Street's ₹2,712 Cr (Kotak) estimate. Net interest margin expanded meaningfully year-on-year, lifting net profit margin to 10.8% (from 8.6% a year ago) and the OPM proxy to 21.2% (from 18.0%). Sequentially, however, the print was flat-to-soft — PAT slipped ~1% versus Q4's ₹1,082 Cr and NPM eased from 11.4% — so the story is YoY recovery, not fresh momentum.
Q1 FY-2027 vs prior quarters
A large part of the profit jump is below the operating line: pre-tax profit grew a more modest ~20.9% YoY, and the effective tax rate dropped to 18.2% (from ~25.4%), so tax-normalised PAT growth is closer to ~21%. Provisions also rose sharply — ₹394 Cr versus ₹188 Cr in Q4 and ₹284 Cr a year ago — trimming what would otherwise have been stronger operating flow-through, even as asset quality improved (GNPA 1.3% vs 1.6% YoY, NNPA 0.2%). Advances of ₹2.85 tn (+18.4% YoY, +4.3% QoQ) confirm the strong loan momentum flagged in the July 3 provisional update.
The stock went into the print at ₹23.61, down 6% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
Board separately cleared fund-raising of up to ₹16,000 Cr (June 29) — ₹728 Cr IFR moved to P&L reserves; ₹879 Cr tax refund and AT-1 bond SLP still pending.
Management guides for loan growth to accelerate to 13-15% in FY27, in line with the industry, after seeing strong sequential momentum. They project continued margin expansion, supported by a significant RIDF rundown of INR 6,500-9,000 crores and disciplined cost of funds management, with a medium-term NIM target of 3.2
— This quarter: met
Versus the last concall, management's bullish framing is broadly borne out on growth (loan growth well ahead of the 13-15% FY27 guide) and YoY margins, but the key 1% ROA objective slipped to 0.9% this quarter and credit costs stepped up — the two watch-points against its 'sustain 1% ROA on low credit costs' guidance. The result lands alongside the board's June 29 approval to raise up to ₹16,000 Cr and the pending ₹879 Cr tax-refund and AT-1 bond matters (SLP reserved for Supreme Court judgment), any of which could move future reported numbers. Standalone PAT (₹1,071 Cr) is effectively identical to consolidated, so basis makes no difference to the read.
What to watch
W1
ROA back to the guided 1%: it slipped to 0.9% this quarter versus management's 'sustain 1% ROA' objective.
W2
Credit costs: provisions doubled QoQ to ₹394 Cr — whether this normalises or signals rising slippage next quarter.
W3
Tax-rate normalisation: the 18.2% effective rate (vs ~25%) flattered PAT; a reversion would compress reported growth even if core profit holds.
Source in ₹ Lakhs, converted to Cr (÷100). Bank format: revenueFromOperations = interest earned; totalExpenses includes provisions & contingencies (₹394.48 Cr consol) so totalIncome−totalExpenses = PBT. Minority interest negligible (₹0.01 Cr); consol PAT before minority ₹1071.81 Cr. No exceptional items either period. Effective tax rate fell to 18.2% (vs ~25.4% YoY/25.3% QoQ) — tax tailwind (other income incl. interest on income-tax refund) inflates PAT growth above PBT growth. Note 15: ₹728 Cr IFR transferred to P&L reserves (balance-sheet, not income). Separate ₹879 Cr tax-refund matter pending. AT-1 bond SLP reserved for Supreme Court judgment.
Informational and educational content only. Not investment advice.