Regulatory
MEDIUMTrigger: ECL framework typically front-loads provisioning; AU's new universal bank avatar would bring it under the framework directly
Monitor: regulatory
AU Small Finance Bank Ltd: Why Is It Outperforming Nifty 500?
ActiveAverage
In , AU Small Finance Bank Ltd (Banks - Small Finance) is outperforming Nifty 500 with +7.3% relative strength. Fundamentals: Average.
AU Small Finance Bank Ltd Key Facts
- PE Ratio
- 29.8x
- Market Cap
- ₹78,628 Cr
- PAT Growth YoY
- +65%
- Revenue Growth YoY
- +18%
- RS vs Nifty 500
- +7.3%
PB: Early ExpansionRiding Wave
What's Happening
📊PB near cycle lows — valuation reset is underway
🌐FII stake decreased 6.2% this quarter
🏛️DII accumulation — stake up 11.8%
🏦GNPA at 2.03% — stable asset quality
💰Trading 43% above estimated fair value — significant premium
Key Risks
1. Regulatory
MEDIUM2. Regulatory
MEDIUM3. Geopolitical
LOWKey Numbers
PAT Growth YoY
+65%
Stable
Revenue YoY
+18%
Stable
GNPA
2.03%
Stable
Price to Book
4.0
Current Price
₹1,050
Dividend Yield
0.10%
Fundamental Score
51/100
Average
3Y PAT CAGR
+23%
Market Cap
78.6K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for AU Small Finance Bank Ltd?
Earnings deceleration risks from management commentary
Regulatory
MEDIUMTrigger: Seasonal Q4 NIM print sets a high base; Q1 reversal is mechanical
Monitor: regulatory
Geopolitical
LOWTrigger: Credit cycle risk if fuel-driven inflation hits unsecured borrower repayment capacity
Monitor: geopolitical
Regulatory
LOWTrigger: License is the gating event for cost-of-funds re-rating thesis
Monitor: regulatory
What Is AU Small Finance Bank Ltd's Management Saying?
Key quotes from recent conference calls
“ECL guideline as it would come and we need to follow from 1st April 2027, obviously some of it will have an impact on Stage 1, Stage 2, but then your accelerated provisioning at Stage 3 might get released [Risk (regulatory): MEDIUM]”
“to the extent that Q4 is strong seasonally and Q1 is weaker, you won't see this benefit in the next quarter. these one-offs will not be there and cost of funds have more or less bottomed out and should increase from here [Risk (regulatory): MEDIUM]”
“Geopolitical tensions in West Asia continue to weigh on global energy prices, currency markets, and supply chain, elevating overall risk sentiment. Indian macroeconomic environment, whilst relatively on a better footing [Risk (geopolitical): LOW]”
“Pursuant to the Bank's request, the RBI has amended the NOFHC requirement, which will now apply to the transition, universal bank only if the Bank or its promoter group proposes to establish any group entity in the future. Following this amendment, we filed the final license application in March '26 [Risk (regulatory): LOW]”
How Fast Is AU Small Finance Bank Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +18% | +31% | Stable |
| PAT (Net Profit) | +65% | +23% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 29, 2026.
Other Top Banks - Small Finance Stocks Beating Nifty 500
Frequently Asked Questions: AU Small Finance Bank Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were AU Small Finance Bank Ltd's latest quarterly results?
AU Small Finance Bank Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +65.1% (stable)
- Revenue Growth YoY: +17.5%
- Net Interest Margin: 7.00%
- Gross NPA: 2.03%
Is AU Small Finance Bank Ltd's profit growing or declining?
AU Small Finance Bank Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +65.1% (latest quarter)
- PAT Growth QoQ: +24.6% (sequential)
- 3-Year PAT CAGR: +22.8%
- Trend: Stable — consistent growth pattern
What is AU Small Finance Bank Ltd's revenue growth trend?
AU Small Finance Bank Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +17.5%
- Revenue Growth QoQ: +6.2% (sequential)
- 3-Year Revenue CAGR: +31.4%
What is AU Small Finance Bank Ltd's asset quality trend?
AU Small Finance Bank Ltd's asset quality trend is stable.
- Gross NPA: 2.03%
- Net NPA: 0.74%
- GNPA Change YoY: -0.3% bps
What is AU Small Finance Bank Ltd's 3-year profit and revenue CAGR?
AU Small Finance Bank Ltd's long-term compounding rates
- 3-Year Profit CAGR: +22.8%
- 3-Year Revenue CAGR: +31.4%
Is AU Small Finance Bank Ltd's growth accelerating or decelerating?
AU Small Finance Bank Ltd's earnings growth is stable with improving on a sequential basis.
- YoY Acceleration: +38.6% bps
- Sequential Acceleration: +5.5% bps
What is AU Small Finance Bank Ltd's trailing twelve month (TTM) performance?
AU Small Finance Bank Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹3,000 Cr
- TTM PAT Growth: +25.4% YoY
- TTM Revenue: ₹19,000 Cr
- TTM Revenue Growth: +16.0% YoY
Is AU Small Finance Bank Ltd overvalued or undervalued?
AU Small Finance Bank Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 29.8x
- Price-to-Book: 4.0x
What is AU Small Finance Bank Ltd's current PE ratio?
AU Small Finance Bank Ltd's current PE ratio is 29.8x.
- Current PE: 29.8x
- Market Cap: 78.6K Cr
- Dividend Yield: 0.10%
How does AU Small Finance Bank Ltd's valuation compare to its history?
AU Small Finance Bank Ltd's current PE is 29.8x.
- Current PE: 29.8x
- Valuation Assessment: Significantly Overvalued
What is AU Small Finance Bank Ltd's price-to-book ratio?
AU Small Finance Bank Ltd's price-to-book ratio is 4.0x.
- Price-to-Book (P/B): 4.0x
- Book Value per Share: ₹264
- Current Price: ₹1050
Is AU Small Finance Bank Ltd a fundamentally strong company?
AU Small Finance Bank Ltd is rated Average with a fundamental score of 50.5/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +65.1% (20% weight)
- PAT Growth QoQ: +24.6% (15% weight)
- Earnings trend: stable (5% weight)
Is AU Small Finance Bank Ltd debt free?
AU Small Finance Bank Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹14,000 Cr
What is AU Small Finance Bank Ltd's return on equity (ROE) and ROCE?
AU Small Finance Bank Ltd's return ratios over recent years
- FY2024: ROE 13.0%
- FY2025: ROE 14.0%
- FY2026: ROE 14.0%
Is AU Small Finance Bank Ltd's cash flow positive?
AU Small Finance Bank Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹2,000 Cr
- Free Cash Flow (FCF): ₹-3,000 Cr
- CFO/PAT Ratio: 69% (adequate)
What is AU Small Finance Bank Ltd's dividend yield?
AU Small Finance Bank Ltd's current dividend yield is 0.10%.
- Dividend Yield: 0.10%
- Current Price: ₹1050
Who holds AU Small Finance Bank Ltd shares — promoters, FII, DII?
AU Small Finance Bank Ltd's shareholding pattern (Mar 2026)
- Promoters: 22.8%
- FII (Foreign): 37.3%
- DII (Domestic): 31.3%
- Public: 8.7%
Is promoter holding increasing or decreasing in AU Small Finance Bank Ltd?
AU Small Finance Bank Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 22.8% (Mar 2026)
- Previous Quarter: 22.8% (Dec 2025)
- Change: -0.03% (decreasing — worth monitoring)
How long has AU Small Finance Bank Ltd been outperforming Nifty 500?
AU Small Finance Bank Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.
Is AU Small Finance Bank Ltd a new momentum entry or an established outperformer?
AU Small Finance Bank Ltd is an established outperformer with 3 weeks of consecutive Nifty 500 outperformance.
What are the key risks in AU Small Finance Bank Ltd?
AU Small Finance Bank Ltd has 4 key risks worth monitoring
- [MEDIUM] Regulatory — ECL framework typically front-loads provisioning; AU's new universal bank avatar would bring it under the framework directly
- [MEDIUM] Regulatory — Seasonal Q4 NIM print sets a high base; Q1 reversal is mechanical
- [LOW] Geopolitical — Credit cycle risk if fuel-driven inflation hits unsecured borrower repayment capacity
- [LOW] Regulatory — License is the gating event for cost-of-funds re-rating thesis
What did AU Small Finance Bank Ltd's management say in the latest earnings call?
In Q4 FY26, AU Small Finance Bank Ltd's management highlighted
- "ECL guideline as it would come and we need to follow from 1st April 2027, obviously some of it will have an impact on Stage 1, Stage 2, but then your ..."
- "to the extent that Q4 is strong seasonally and Q1 is weaker, you won't see this benefit in the next quarter. these one-offs will not be there and cost..."
- "Geopolitical tensions in West Asia continue to weigh on global energy prices, currency markets, and supply chain, elevating overall risk sentiment. In..."
Is AU Small Finance Bank Ltd worth studying for long term investment?
Based on quantitative research signals, here is why AU Small Finance Bank Ltd may be worth studying
- Earnings growing at +65.1% YoY
- Cash flow is positive — CFO ₹2,000 Cr
What is the investment thesis for AU Small Finance Bank Ltd?
AU Small Finance Bank Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +17.5% YoY
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Regulatory
What is the future outlook for AU Small Finance Bank Ltd?
AU Small Finance Bank Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Valuation: Significantly Overvalued
- Key Risk: Regulatory
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.