AU Small Finance Bank Ltd (Banks - Small Finance) — fundamental analysis, earnings data, and key metrics. PE: 28.6. ROE: 14.2%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 (ended December 31, 2025) earnings • Updated Feb 22, 2026
What: 25 bps NIM expansion driven by 22 bps lower cost of funds, CRR benefit, and lower surplus liquidity
Impact: +₹750 Cr revenue
“NIM expanded by 25 basis points quarter-on-quarter to 5.7% led by sharp decline of 22 basis points in cost of funds and benefit from CRR cut”
What: Credit costs reduced to 78 bps from 110 bps as slippages declined 13% QoQ and GNPA improved
Impact: +₹400 Cr revenue
“Credit costs reduced to 78 basis points of average assets. Slippages declined by 13% quarter-on-quarter”
What: Secured assets grew 23% YoY while unsecured businesses started turning around with 1% positive growth
Impact: +₹2500 Cr revenue
“Secured assets grew by 23% year-on-year and unsecured businesses have also started to turn around with a 1% positive growth this quarter led by MFI”
Earnings deceleration risks from management commentary
Trigger: If economic slowdown occurs
Impact: 30 bps margin impact
Management view: Unsecured businesses have also started to turn around with a 1% positive growth this quarter led by MFI
Monitor: Unsecured slippage ratio
Trigger: If deposit rate competition intensifies
Impact: 15 bps margin impact
Management view: We expect NIM to settle around 6% in the medium term
Monitor: CASA ratio and deposit pricing
Key quotes from recent conference calls
“NIM expanded by 25 basis points quarter-on-quarter to 5.7% from 5.5% in Q2 benefiting from 22 bps decline in cost of funds, reduction in CRR and lower surplus liquidity during the quarter — Management”
“Slippages declined by 13% quarter-on-quarter to ₹331 crores driven by ongoing normalization in unsecured businesses. Seasonal strengthening in secured assets and enhanced CGFMU coverage in MFI — Management”
“We continue to focus on growing our deposit franchise, optimizing cost of funds, pushing growth in secured assets and driving cost efficiency and fee momentum — Sanjay Agarwal, MD & CEO”
“Profit after tax of ₹668 crores for the quarter with ROA of 1.6%. This included a one-time provision of ₹20 crores due to impact of the new labor code. Excluding this impact, PAT for the quarter was ₹682 crores, up 29% year-on-year — Management”
Forward-looking targets from management for FY27
Revenue Growth Target
20%
Implied PAT Growth
22%
Credit Growth Target
21%
NIM Guidance
6%
Key Milestones
• 20-22% loan growth
• ROA of 1.8%
• NIM of 6% medium term
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
AU Small Finance Bank Ltd's latest quarterly results (Dec 2025) show
AU Small Finance Bank Ltd's current PE ratio is 28.6x.
AU Small Finance Bank Ltd's price-to-book ratio is 3.6x.
AU Small Finance Bank Ltd's fundamental strength based on key financial ratios
AU Small Finance Bank Ltd has a debt-to-equity ratio of N/A.
AU Small Finance Bank Ltd's return ratios over recent years
AU Small Finance Bank Ltd's operating cash flow is positive (FY2025).
AU Small Finance Bank Ltd's current dividend yield is 0.11%.
AU Small Finance Bank Ltd's shareholding pattern (Dec 2025)
AU Small Finance Bank Ltd's promoter holding has decreased recently.
AU Small Finance Bank Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
AU Small Finance Bank Ltd has 3 key growth catalysts identified from recent earnings analysis
AU Small Finance Bank Ltd has 2 key risks worth monitoring
In Q3 FY26 (ended December 31, 2025), AU Small Finance Bank Ltd's management highlighted
AU Small Finance Bank Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why AU Small Finance Bank Ltd may be worth studying
AU Small Finance Bank Ltd investment thesis summary:
AU Small Finance Bank Ltd's forward outlook based on current data signals
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.
