DCB Bank Ltd. share price target

DCB Bank reported a strong Q1FY27, delivering its highest-ever quarterly profit, driven by lower funding costs, improving operating efficiency and stable asset quality. Management reiterated its focus on consistent, predictable and sustainable growth, led by stronger liabilities, higher productivity and disciplined capital allocation. Advances grew 17.1% YoY to Rs599.51bn, driven by mortgages, gold loans and Agri & Inclusive Banking, while deposits increased 20.1% YoY to Rs744.82bn. NIM expanded 15bps YoY to 3.35% and core fee...

We maintain our BUY recommendation on the stock.

DCB Bank delivered a strong performance for another quarter, supported by healthy growth in balance-sheet (deposits up 20.1% y/y and advances up 17.1% y/y); core operating profit outpacing balance-sheet growth; and healthy asset quality.

DCB Bank (DCB) reported a strong quarter with healthy delivery on growth, NIM, fee, opex and AQ. Q1FY27 PAT of INR 2.13bn grew 36% YoY (8% beat), driven by 18% NII growth and 50% dip in provisioning.

DCB Bank (DCBB) reported 36% YoY growth in PAT to INR2.13b (broadly in line), as lower provisions compensated for modest other income. NII grew 18% YoY to INR6.8b (in line, up 4% QoQ).

DCB Bank reported a resilient quarter with ROE improving to 13.53% the highest in 11 years while core fee income hit a record Rs 198 cr in Q4. NIM stood at 3.39%, aided by a product mix shift as lower-yielding co-lending declined. Credit cost came in at 40 bps for FY26, beating guidance of 45 bps. Cost-to-income improved 300 bps YoY. Balance sheet doubled from Rs 29,800 cr in March 2022 to Rs 60,000 cr a consistent four-year doubling cycle. We largely maintain estimates. We maintain our rating to BUY with target price of Rs 224 valuing the bank at 0.9x FY28E P/ABV....

DCB reported a strong performance in Q4FY26 with balance sheet growth remaining above system (deposits up 20.9% y/y and loans up 17.6% y/y), NIM up 12bps q/q, along with a sharp q/q and y/y improvement in asset quality.

We maintain our BUY recommendation on the stock.

DCB Bank (DCBB) reported 16.1% YoY growth in PAT at INR2.06b (broadly in line), aided by lower provisions and lower tax rate.

Earnings largely in line with estimates and margins improving; AQ improved, driven by lower slippages

DCB Bank delivered a strong Q3 FY26 performance, reflecting healthy growth momentum, improving profitability and stable asset quality. Advances grew ~18% YoY, driven by traction in secured retail products, co-lending and construction finance, while deposits rose ~19% YoY, supported by improvement in granularity and a stable retail-to-bulk mix. PAT increased ~22% YoY, despite a one-off regulatory expense related to new labour codes. Asset quality improved sequentially, with GNPA declining to 2.72% and NNPA moderating to 1.10%, aided by controlled slippages, recoveries and higher provisioning coverage....

We maintain our BUY rating on the stock.

DCB Bank (DCBB) reported 22% YoY growth in PAT to INR1.85b (broadly inline) driven by higher other income offset by higher opex and provisions. NII grew 15.1% YoY to INR6.2b (inline, up 4.8% QoQ). NIM expanded 4bp QoQ to 3.27% in 3QFY26.

Delivering Stable Performance Across Cycles

DCB Bank (DCB) hosted its maiden analyst day. The bank intends to remain focused on the underserved MSME segment through secured and granular loan offerings.

We value the stock at 0.95x FY27E ABV to arrive at a target price of Rs 200/share, implying an upside of 14% from the CMP.

DCB Bank (DCBB) has been delivering healthy loan growth and has guided for a steady growth rate of 18-20% over the coming years. The bank continues to focus on granular retail loans with a retail mix (ex-Agri) at 65% of the total portfolio.

We maintain our BUY recommendation on reasonable valuations.

Business growth remains strong; promoter infused equity capital of Rs 830 mn or ~21bps of Tier I capital

DCB Bank's NIM declined by 9bps QoQ to 3.2% led by decline in yield on assets. Management targets improvement in NIMs to 3.2% with 20% liability book growth planned. Asset quality remain stable with GNPA at 2.98% vs 2.99% QoQ led by higher write offs. However, slippage ratio inched up led by stress in MFI and unsecured portfolio. Banks deposits growth remained strong at 20% YoY; credit growth too witnessed strong growth at 21% YoY. We expect 18% CAGR (FY25-27E) credit growth. NII grew by 17% YoY led by decline in margins. Core fee income grew by 18% Yoy; while one time gain during the quarter supported higher other income....