| Metric | Value (₹ Cr) | Q3 FY26 | Q4 FY25 |
|---|---|---|---|
| Revenue | 1.2K | 33.8% | 33.9% |
| Total Income | 1.2K | 2.8% | 15.4% |
| Expenditure | 955.16 | 4.9% | 1.0% |
| PBT | 27.09 | 196.7% | 111.3% |
| Net Profit | 23.51 | 230.2% | 112.8% |
| OPM | 20.17% | 8.07pp | 10.02pp |
| NPM | 1.96% | 1.35pp | 19.63pp |
| EPS | 0.46 | 228.6% | 87.1% |
ESAF SFB Q4 FY26 Operating Profit up 166.1% YoY; Net Profit ₹24 Cr
30 Apr 2026 · 30 Apr, 10:04 pm
Summary
ESAF Small Finance Bank reported a strong financial performance for Q4 FY26, achieving a net profit of ₹24 crore, a substantial improvement from a loss of ₹183 crore in the prior year's comparable quarter. This turnaround was supported by a 166.1% year-on-year growth in operating profit and an improved Net Interest Margin of 6.4%. The bank's total business expanded by 14.8% year-on-year to ₹48,276 crore, fueled by robust growth in gross advances and deposits. Dr. K. Paul Thomas, MD & CEO, highlighted the successful execution of their MARG strategy, which has accelerated the shift towards a more secured and sustainable portfolio, with secured assets now comprising over 60% of advances, building a resilient balance sheet for long-term growth.
Key Highlights
- 1
ESAF Small Finance Bank reported a net profit of ₹24 crore for Q4 FY26, a significant turnaround from a loss of ₹183 crore in the same quarter last year.
- 2
Operating profit saw a remarkable year-on-year growth of 166.1% to ₹241 crore in Q4 FY26.
- 3
Total business expanded by 14.8% year-on-year to ₹48,276 crore as of March 31, 2026, driven by a 19.4% growth in gross advances to ₹22,426 crore and an 11.1% increase in deposits to ₹25,850 crore.
- 4
The bank's focus on a more secured portfolio resulted in secured loan disbursements growing by 73.8% year-on-year to ₹10,134 crore, with secured assets now constituting 61% of gross advances, up from 53% a year ago.
- 5
Gold loans emerged as a key growth driver, with the portfolio expanding by 54.5% year-on-year to ₹8,858 crore.
- 6
Asset quality improved meaningfully, with Gross NPA reducing to 5.4% from 5.6% in the previous quarter, and Net NPA declining to 1.8% from 2.7%.
- 7
Net Interest Margin improved to 6.4%, supported by a better asset mix and lower slippages.
Management Comments
Dr. K. Paul Thomas
Q4 FY26 reflects a continued strengthening of our business with improved profitability and steady progress in asset quality. The successful execution of our MARG strategy—focusing on MSME, Agri, Retail, and gold lending—has accelerated our shift towards a more secured, granular, and sustainable portfolio. With secured assets now accounting for over 60% of our advances, we are building a resilient balance sheet for long- term growth. We remain confident that this strategic shift, supported by investments in technology, operational efficiency, and risk management, will continue to drive consistent performance while staying true to our mission. With strong business momentum and a clear strategic direction, we are well p
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