The South Indian Bank Limited Earnings Summary — Q4 FY2026
South Indian Bank Hits Record Profitability with Superior Asset Quality and Dividend Hike
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹2,628 Cr is 11.2% higher year-on-year.
- Revenue has compounded at 6.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹378 Cr is 17.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 12.9% annualised across the period.
- Operating margin stands at 65.9% in Q1 FY2027.
- Operating margin expanded by 909 bps year-on-year.
- Over the last two years operating margin has expanded by 445 bps.
- PBT margin is 19.3%.
- Expense growth of -12.2% remained below revenue growth of 11.2%.
- Operating profit of ₹1,731 Cr is 29.0% 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 78/100 (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 | 2,628 | 2,559 | 2,518 | 2,407 | 2,362 | 2,373 | 2,371 | 2,355 | 2,314 | 2,275 |
| Expenses | Stable | 897 | 755 | 862 | 852 | 1,021 | 981 | 815 | 852 | 893 | 828 |
| Operating Profit | Stable | 1,731 | 1,805 | 1,655 | 1,555 | 1,341 | 1,392 | 1,555 | 1,503 | 1,422 | 1,447 |
| Operating Margin | Stable | 65.9% | 70.5% | 65.8% | 64.6% | 56.8% | 58.6% | 65.6% | 63.8% | 61.4% | 63.6% |
| Other Income | Stable | 380 | 386 | 486 | 516 | 622 | 572 | 409 | 410 | 422 | 346 |
| Interest | Stable | 1,603 | 1,644 | 1,637 | 1,598 | 1,530 | 1,505 | 1,501 | 1,472 | 1,449 | 1,400 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 508 | 547 | 504 | 473 | 433 | 459 | 463 | 440 | 395 | 393 |
| Tax | Stable | 130 | 139 | 130 | 121 | 111 | 117 | 121 | 116 | 101 | 105 |
| Net Profit | Improving | 378 | 407 | 374 | 352 | 322 | 342 | 342 | 325 | 294 | 287 |
| Net Margin | Stable | 14.4% | 15.9% | 14.9% | 14.6% | 13.6% | 14.4% | 14.4% | 13.8% | 12.7% | 12.6% |
Key Takeaways
- Delivered a record standalone Net Profit of ₹1,45,614 Lakhs for the full financial year 2025-26.
- Significant improvement in asset quality with Net NPA dropping to a multi-year low of 0.45% compared to 0.92% YoY.
- Capital Adequacy Ratio (BASEL III) remains robust at 17.84%, providing a strong buffer for future credit growth.
- Recommended an increased dividend of ₹0.45 per equity share (45% of face value) for the fiscal year.
- Gross NPA ratios improved substantially, falling to 2.67% from 3.20% in the same period last year.
- Total balance sheet size crossed ₹1.41 Trillion, driven by steady growth in deposits and advances.
Management Guidance
Management is focused on maintaining the structural transformation of the bank's earnings profile, targeting higher-yielding retail segments and continued digital transformation to drive efficiency.
Sentiment Shift
Improving
The bank has successfully transitioned from a high-stress legacy asset phase to a high-ROE, low-NPA profile, supported by institutional-grade capital adequacy.
Outlook
The outlook is stable to positive as the bank leverages its cleaned-up balance sheet to scale beyond its regional base, though it must navigate thin financing margins and regional competition.
From the Annual Report (Key Quotes)
“The Board of Directors... recommended a dividend of Rs.0.45 per equity shares... subject to the approval of the Shareholders.”
“Net NPA to Net Advances stood at 0.45% as of March 31, 2026.”
“Audit Report issued by the Joint Statutory Auditors of the Bank... with unmodified opinion.”
Official Quarterly Documents
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This summary is AI-generated from The South Indian Bank Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.