AU Small Finance Bank Limited Earnings Summary — Q1 FY2027
AU Small Finance Bank Reports Healthy Net Profit Growth Amid Universal Bank Transition
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹5,019 Cr is 17.5% higher year-on-year.
- Revenue has compounded at 31.0% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹832 Cr is 65.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 42.4% annualised across the period.
- Operating margin stands at 55.5% in Q4 FY2026.
- Operating margin expanded by 701 bps year-on-year.
- Over the last two years operating margin has expanded by 313 bps.
- PBT margin is 21.6%.
- Expense growth of 1.5% remained below revenue growth of 17.5%.
- Operating profit of ₹2,788 Cr is 34.5% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 87/100 (Excellent) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 | Q3 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 5,019 | 4,727 | 4,511 | 4,378 | 4,271 | 4,113 | 3,911 | 3,769 | 2,830 | 2,736 |
| Expenses | Improving | 2,231 | 2,181 | 2,128 | 2,076 | 2,197 | 1,938 | 1,854 | 1,761 | 1,346 | 1,269 |
| Operating Profit | Improving | 2,788 | 2,547 | 2,383 | 2,302 | 2,073 | 2,176 | 2,057 | 2,008 | 1,483 | 1,467 |
| Operating Margin | Stable | 55.5% | 53.9% | 52.8% | 52.6% | 48.5% | 52.9% | 52.6% | 53.3% | 52.4% | 53.6% |
| Other Income | Improving | 731 | 724 | 713 | 811 | 761 | 618 | 638 | 509 | 464 | 442 |
| Interest | Improving | 2,437 | 2,386 | 2,367 | 2,334 | 2,177 | 2,091 | 1,936 | 1,848 | 1,492 | 1,411 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 1,082 | 884 | 729 | 779 | 657 | 703 | 759 | 669 | 455 | 498 |
| Tax | Improving | 250 | 217 | 168 | 198 | 153 | 175 | 188 | 166 | 84 | 123 |
| Net Profit | Improving | 832 | 668 | 561 | 581 | 504 | 528 | 571 | 503 | 371 | 375 |
| Net Margin | Stable | 16.6% | 14.1% | 12.4% | 13.3% | 11.8% | 12.8% | 14.6% | 13.3% | 13.1% | 13.7% |
Key Takeaways
- Net profit grew 37% year-on-year to ₹79,595 Lakh, though it saw a sequential decline of 4% from Q4 FY2026.
- The Bank is actively pursuing a final Universal Bank license following RBI's in-principle approval granted in August 2025.
- Asset quality showed slight deterioration sequentially with Gross NPA at 2.10% versus 2.03% in the prior quarter.
- Management leadership was strengthened with the elevation of Mr. Yogesh Jain from COO to Deputy CEO.
- Capital Adequacy Ratio remains healthy at 18.93%, providing sufficient buffer for growth.
- Retail Banking remains the primary revenue driver, contributing ₹4,45,030 Lakh to total segment revenue.
Management Guidance
The Bank has submitted its application for the final Universal Banking license as of March 2026. The transition strategy involves a focus on strengthening management bandwidth and leadership structure to handle the growing scale of operations as a potential Universal Bank.
Sentiment Shift
Stable
Strong YoY profitability growth and progress toward a universal banking license maintain a positive outlook, despite minor sequential fluctuations in asset quality and net profit.
Outlook
The outlook is centered on the successful transition to a Universal Bank, which is expected to enhance the bank's competitive positioning and product range. The bank continues to invest in technology and digital banking units to drive future retail growth.
From the Annual Report (Key Quotes)
“His elevation is intended to further strengthen the Bank’s leadership structure and management bandwidth, commensurate with the growing scale of operations.”
“Grant of the final license shall remain subject to RBI’s assessment of the Bank’s compliance with applicable regulatory guidelines and instructions.”
“The business operations of the Bank are in India and for the purpose of segment reporting the bank is considered to operate only in domestic segment.”
Official Quarterly Documents
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This summary is AI-generated from AU Small Finance Bank Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.