The Federal Bank Limited Earnings Summary — Q1 FY2027
Federal Bank Q1 FY27 Net Profit Rises 36.6% YoY Driven by Improved Margin and Asset Quality
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 1.1% sequentially in Q1 FY2027.
- Revenue of ₹7,862 Cr is 9.9% higher year-on-year.
- Revenue has compounded at 10.0% annualised over the last 10 quarters.
- Net profit of ₹1,256 Cr is 36.8% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 12.1% annualised across the period.
- Operating margin stands at 66.1% in Q1 FY2027.
- Operating margin expanded by 115 bps year-on-year.
- Over the last two years operating margin has contracted by 345 bps.
- PBT margin is 22.1%.
- Expense growth of 6.3% remained below revenue growth of 9.9%.
- Operating profit of ₹5,197 Cr is 11.9% 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 74/100 (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 | 7,862 | 7,947 | 7,360 | 7,216 | 7,151 | 7,108 | 7,265 | 7,006 | 6,728 | 6,339 |
| Expenses | Improving | 2,665 | 3,017 | 2,595 | 2,519 | 2,506 | 2,265 | 2,349 | 2,149 | 2,048 | 1,917 |
| Operating Profit | Stable | 5,197 | 4,929 | 4,766 | 4,697 | 4,645 | 4,843 | 4,916 | 4,857 | 4,680 | 4,422 |
| Operating Margin | Stable | 66.1% | 62.0% | 64.8% | 65.1% | 65.0% | 68.1% | 67.7% | 69.3% | 69.6% | 69.8% |
| Other Income | Improving | 1,082 | 1,186 | 1,143 | 1,105 | 1,164 | 1,047 | 931 | 1,010 | 936 | 810 |
| Interest | Stable | 4,538 | 4,402 | 4,401 | 4,429 | 4,540 | 4,456 | 4,570 | 4,393 | 4,212 | 3,936 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 1,741 | 1,714 | 1,507 | 1,373 | 1,270 | 1,434 | 1,277 | 1,473 | 1,404 | 1,296 |
| Tax | Improving | 443 | 320 | 384 | 353 | 323 | 325 | 328 | 369 | 364 | 324 |
| Net Profit | Improving | 1,256 | 1,341 | 1,094 | 992 | 918 | 1,091 | 944 | 1,096 | 1,028 | 971 |
| Net Margin | Stable | 16.0% | 16.9% | 14.9% | 13.8% | 12.8% | 15.3% | 13.0% | 15.7% | 15.3% | 15.3% |
Key Takeaways
- Federal Bank achieved a strong year-on-year net profit growth of 36.91%, reaching ₹1,302 crore in Q1 FY27.
- Total revenue increased nearly 10% YoY to ₹7,862 crore, supported by a healthy financing margin of 8%.
- Asset quality showed significant improvement with Net NPA falling to a historical low of 0.18%.
- Net interest income and other income remained steady, though revenue saw a slight sequential decline of 1.07% compared to Q4 FY26.
- Operating efficiency improved as financing margin expanded to 8% from 7% in the previous two quarters.
- Total liabilities and assets reached ₹4,02,081 crore, reflecting stable balance sheet expansion and deposit growth.
Management Guidance
The board has approved a substantial fund-raising plan of up to ₹10,000 crore via debt instruments to support future growth and liquidity requirements.
Sentiment Shift
Improving
A sharp year-on-year increase in profitability combined with multi-quarter highs in financing margins and record-low NPA levels signals strengthening operational health.
Outlook
The bank appears positioned for continued expansion with a focused debt-raising strategy and robust risk management as evidenced by its declining NPA ratios.
From the Annual Report (Key Quotes)
“Federal Bank Q1 FY27 profit rose 36.57% to ₹1,176.93 crore; net NPA fell to 0.18%.”
“Federal Bank board approved borrowing up to ₹10,000 crore via debt instruments, subject to approvals.”
Official Quarterly Documents
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This summary is AI-generated from The Federal Bank Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.