Equitas Small Finance Bank Ltd. share price target

Equitas SFB (EQUITASB) reported 2QFY26 PAT at ~INR241m (87% YoY, miss to our estimate) vs. loss of INR2.2b in 1QFY26, owing to higher-than-expected provisions.

Gross advances grew 7.8% YoY, driven by strong momentum in small business loans (+21.9% YoY), used vehicle finance (+50.2% YoY), and housing finance (+12.0% YoY). Deposits rose 18.3% YoY, though slower CASA growth (+11.3% YoY) led to a 1.8% YoY...

We maintain our BUY recommendation on reasonable valuations.

Equitas SFB (Equitas)’s financial performance continues to be marred by elevated credit cost and a >20% QoQ decline in the high-yielding MFI portfolio.

Equitas continued to post dismal results, as it slipped into loss of Rs2.2bn, mainly due to persistent higher MFI/non-MFI stress and accelerated standard provisions on MFI loans (Rs1.9bn, mainly to ease provisioning in 9MFY26).

Equitas SFB (EQUITASB) reported a net loss of INR2.24b vs our estimate of PAT of INR220m, driven by a sharp rise in provisions due to stress in MFI and changes in the provisioning policy.

We recommend a BUY rating on the stock with a target price of Rs 74/share, implying an upside of 11% from the CMP.

expected to support earnings recovery. The bank is projected to exit FY26 with a Return on Assets (ROA) of 1% and sustain an ROA above 1% throughout FY27. With stress in the microfinance segment subsiding, we assign an "Accumulate" rating to the stock, with a target price of 68, based on 1.1x FY27E Book Value per Share (BVPS)....

We upgrade our rating to BUY from HOLD earlier.

Equitas SFB (EQUITASB) reported 4QFY25 PAT of ~INR421m, down 37% QoQ and 43% below our est., due to lower other income and higher-thanexpected provisions.

Rising share of diversified and secured portfolio with MFI mix likely to decline further; scaling up granular deposit franchise

We maintain our HOLD recommendation on the stock.

Equitas SFB (EQUITASB) reported 3QFY25 PAT of ~INR663m (-67% YoY; 17% miss to MOFSLe) amid lower other income, partially offset by slightly lower provisions.

We maintain our HOLD recommendation on the stock.

Equitas SFB (EQUITASB) reported 2QFY25 PAT of ~INR129m (-93.5% YoY; 93% miss on MOFSLe) as the bank made additional provision of INR1.46b toward the MFI segment.

Equitas Small Finance Bank (EQUITASB) has demonstrated a strong business growth trajectory with a 26% CAGR in its loan book and 38% CAGR in deposits from FY22-FY24.

We revise our recommendation to HOLD from BUY earlier.

Equitas SFB (EQUITASB) reported a 1QFY25 PAT of ~INR0.3b (-87% YoY), 85% lower than MOFSLe amid higher floating provisions, as the bank reduced its NNPA to <1% and raised PCR to >70%.