FINANCIAL SERVICES · NSE/BSE: CANBK

Canara Bank Earnings Summary — Q1 FY2027

Sentiment: Positive

AI-generated summary

Generated 2026-07-28

Generated using: Official Earnings Press Release

Business Intelligence Report

Canara Bank Reports Robust Profit Growth in Q1 FY2027 with Decadal Low Net NPA

Quarterly Business Intelligence

Q1 FY2027

Financials from Financial Intelligence · data as of 2026-06-30

Revenue

₹32,957 Cr

QoQ +3.5%YoY +4.5%

Net Profit

₹5,181 Cr

QoQ +13.3%YoY +62.2%

Operating Profit

₹22,566 Cr

QoQ -1.8%YoY +22.8%

Operating Margin

68.5%

QoQ -367 bpsYoY +1016 bps

AI Quarterly Scorecard™

/ 100

Strong

Revenue Momentum70

Profit Growth90

Margin Expansion99

Growth Consistency75

Operating Efficiency74

Financial Stability66

Computed deterministically from the last 10 reported quarters.

Quarterly Business Momentum

Revenue & Growth

Revenue has increased for 3 consecutive quarters.
Revenue of ₹32,957 Cr is 4.5% higher year-on-year.
Revenue has compounded at 5.4% annualised over the last 10 quarters.
Revenue is at its highest level in 10 quarters.

Profitability

Net profit of ₹5,181 Cr is 62.2% above the same quarter last year.
Profit growth is outpacing revenue growth, pointing to positive operating leverage.
Net profit has compounded at 12.8% annualised across the period.

Margins

Operating margin stands at 68.5% in Q1 FY2027.
Operating margin expanded by 1016 bps year-on-year.
Over the last two years operating margin has expanded by 964 bps.
PBT margin is 19.9%.

Operating Efficiency

Expense growth of -20.9% remained below revenue growth of 4.5%.
Operating profit of ₹22,566 Cr is 22.8% higher year-on-year.
Operating leverage continues to improve.

Overall Momentum

6 of the last 6 measured quarters delivered year-on-year revenue growth.
Overall quarterly business momentum scores 79/100 (Strong) 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 Q1 FY2027	Q4 FY2026	Q3 FY2026	Q2 FY2026	Q1 FY2026	Q4 FY2025	Q3 FY2025	Q2 FY2025	Q1 FY2025	Q4 FY2024
Revenue	Stable	32,957	31,839	30,938	32,072	31,523	31,496	30,751	30,182	29,173	29,286
Expenses	Volatile	10,391	8,871	4,002	13,251	13,141	12,124	10,752	12,066	12,010	13,198
Operating Profit	Improving	22,566	22,968	26,936	18,821	18,382	19,371	19,999	18,116	17,163	16,088
Operating Margin	Improving	68.5%	72.1%	87.1%	58.7%	58.3%	61.5%	65.0%	60.0%	58.8%	54.9%
Other Income	Volatile	6,739	4,700	2,152	9,942	8,086	8,761	6,679	7,824	7,793	8,098
Interest	Stable	22,737	22,024	22,709	22,412	21,992	21,556	21,163	20,427	19,534	19,226
Depreciation	Insufficient data	—	—	—	—	—	—	—	—	—	—
Profit Before Tax	Improving	6,567	5,644	6,379	6,351	4,475	6,576	5,515	5,513	5,422	4,960
Tax	Improving	1,703	1,263	1,510	1,485	1,472	1,478	1,354	1,412	1,445	1,167
Net Profit	Improving	5,181	4,574	5,254	4,850	3,195	5,070	4,214	4,188	4,068	3,952
Net Margin	Improving	15.7%	14.4%	17.0%	15.1%	10.1%	16.1%	13.7%	13.9%	13.9%	13.5%

Source: Financial Intelligence (Structured Quarterly Data)•Latest Quarter: Q1 FY2027•Figures in ₹ Crore • Margins in %•Automatically updated from Financial Intelligence · 2026-06-30

Key Takeaways

Standalone Net Profit for Q1 FY27 increased to ₹4,855.82 crore, showing steady sequential and annual growth.
Asset quality continues to improve significantly, with Gross NPA falling to 1.57% from 2.69% YoY and Net NPA reaching a decade-low of 0.36%.
Operating Profit before Provisions stood at ₹8,635.86 crore, a sharp recovery from the previous quarter's ₹6,757.38 crore.
The Bank's Provision Coverage Ratio (PCR) remains exceptionally high at 94.76% on a standalone basis.
Capital Adequacy Ratio (Basel III) strengthened to 17.17% in June 2026 compared to 16.52% in the same quarter last year.
Retail Banking remains the primary revenue driver, contributing ₹19,908.64 crore to the total revenue for the quarter.

Management Guidance

Management focus remains on retail/SME growth following a clean-up of the balance sheet. Digital transformation (DBU identification) is a key strategic sub-segment. The bank has successfully transitioned its investment accounting, discontinuing the Investment Fluctuation Reserve (IFR) and transferring ₹1936.63 crore to General Reserves in line with new RBI directions.

Sentiment Shift

Improving

Consistent reduction in NPA Ratios and improved Return on Assets (1.04%) indicate a sustained turnaround following the Syndicate Bank merger integration.

Stable Asset Quality

Operational Efficiency

Capital Strong

Outlook

The outlook is positive driven by a decadal low in Net NPA (0.36%) and high Provision Coverage, though NIMs (Net Interest Margins) remain a focus area given the low CASA ratio compared to private peers. The bank is well-positioned for the current credit cycle with a CAR of 17.17%.