In , Equitas Small Finance Bank Ltd (Banks - Small Finance) is outperforming Nifty 500 with +12.8% relative strength. Fundamentals: Weak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Feb 22, 2026
What: 43bps QoQ NIM expansion to 6.72% with potential for marginal tick-up in coming quarters
Impact: +₹50 Cr revenue
“Murali Vaidyanathan: "So, we should expect our NIM to be -- I mean, I think our NIM is more or less where it will be. Maybe it may marginally tick up a little bit, but somewhere around this range is where we expect it to be"”
What: Credit costs expected to taper down by Q4 FY26 from current 1.85%
Impact: +₹65 Cr revenue
“CFO: "We expect credit costs to taper down by Q4 FY '26"”
What: Non-MFI disbursements reached record ₹5,385 cr (35% YoY growth), now 91% of advances
Impact: +₹80 Cr revenue
“Jagadesh J.: "Our non-MFI, which is a secured book now stands at ₹38,108 crores marking a 19% year-on-year growth"”
Earnings deceleration risks from management commentary
Trigger: If rural economy weakens
Impact: -15 bps margin impact
Management view: CFO: "Because of that, we do not expect a downward pressure on NIM any longer because of MFI going down"
Monitor: MFI slippage rate
Trigger: Future regulatory changes
Impact: -10 bps margin impact
Management view: CEO: "We have delivered a better-than-expected ROA of 0.65% for Q3 after taking into account around INR29 crores of impact due to the new labour code implementation"
Monitor: One-time provisions
Key quotes from recent conference calls
“We have delivered a better-than-expected ROA of 0.65% for Q3 after taking into account around INR29 crores of impact due to the new labour code implementation. But for this onetime impact, the ROA would have been in the range of around 0.8% and cost to income would have been at about 70% level. — CEO”
“We exited quarter 3 and TD, which was at 8.48% today is at 7.3%, which means close to 95 bps on TD on repriced book of 65% of the portfolio. — Murali Vaidyanathan, CFO”
“Net slippages significantly reduced to 2.52% in quarter 3, down from 3.78% in quarter 2. — CFO”
“On advances growth, we have guided for a 15% growth for the year against 12% growth in Q3. That is, I'm talking of without taking into account the DA purchase in Q3. — CEO”
Forward-looking targets from management for Q4 FY26
Revenue Growth Target
15%
Implied PAT Growth
12%
Credit Growth Target
15%
NIM Guidance
6.7%
Key Milestones
• 1% ROA by Q4 FY26
• 15% loan growth for FY26
• Credit costs tapering down by Q4 FY26
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +5% | +22% | Stable |
| PAT (Net Profit) | +36% | -19% | Inflection Up |
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.
Equitas Small Finance Bank Ltd's latest quarterly results (Mar 2026) show
Equitas Small Finance Bank Ltd's profit is growing with an turning around (inflection up) trend.
Equitas Small Finance Bank Ltd's revenue growth trend is stable.
Equitas Small Finance Bank Ltd's asset quality trend is stable.
Equitas Small Finance Bank Ltd's long-term compounding rates
Equitas Small Finance Bank Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
Equitas Small Finance Bank Ltd's trailing twelve month (TTM) performance
Equitas Small Finance Bank Ltd appears significantly overvalued based on our fair value analysis.
Equitas Small Finance Bank Ltd's current PE ratio is 80.2x.
Equitas Small Finance Bank Ltd's price-to-book ratio is 1.4x.
Equitas Small Finance Bank Ltd is rated Weak with a fundamental score of 33.5/100. This score is calculated from objective financial metrics
Equitas Small Finance Bank Ltd has a debt-to-equity ratio of N/A.
Equitas Small Finance Bank Ltd's return ratios over recent years
Equitas Small Finance Bank Ltd's operating cash flow is positive (FY2025).
Equitas Small Finance Bank Ltd currently does not pay a significant dividend (yield 0.00%).
Equitas Small Finance Bank Ltd's shareholding pattern (Dec 2025)
Equitas Small Finance Bank Ltd's promoter holding is 0.0%.
Equitas Small Finance Bank Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Equitas Small Finance Bank Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Equitas Small Finance Bank Ltd has 3 key growth catalysts identified from recent earnings analysis
Equitas Small Finance Bank Ltd has 2 key risks worth monitoring
In Q3 FY26, Equitas Small Finance Bank Ltd's management highlighted
Equitas Small Finance Bank Ltd's management has provided the following forward guidance for Q4 FY26
Based on quantitative research signals, here is why Equitas Small Finance Bank Ltd may be worth studying
Equitas Small Finance Bank Ltd investment thesis summary:
Equitas 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.
