Equitas Small Finance Bank Shares Soar 11% to New High on Strong Q4 Profit

Equitas Small Finance Bank share price today:Equitas Small Finance Bank shares surged over 11 per cent on Tuesday, hitting a new 52-week high following a multi-fold jump in Q4FY26 profit. The stock opened with a gap-up of 6 per cent at ₹71 and quickly climbed to an intraday high of ₹74.60.As of 11:50 AM,shares of Equitas SFBwere trading 10.4 per cent higher at ₹73.80, supported by a sharp spike in trading volume. Around 33 million shares had changed hands on the National Stock Exchange (NSE), compared to just two million shares traded in the previous session.On the BSE, the stock was up 10 per cent at ₹73.89, with volumes surging more than 6.6 times.Equitas Small Finance Bank Q4 resultsIn an exchange filing, Equitas Small Finance Bank said that it hasreported highest quarterly PAT of ₹213 crore in Q4FY26, registering a growth of 406 per cent on Y-o-Y basis. Sequentially, the PAT was up 136 per centThe lender's net interest margin improved 57 bps Q-o-Q to 7.29 per cent, led by interest income on advances and reduced cost of funds. The cost of funds reduced by 19 bps to 6.94 per cent in Q4FY26 from 7.13 per cent in Q3FY26. The net income grew by 18 per cent Y-o-Y and 9 per cent Q-o-Q, the bank said in a filing.Also ReadStock Market LIVE: Sensex gains 400 pts; Nifty near 24,100; ECI data shows BJP leading in BengalBHEL zooms 13%, stock hits all-time high after 18 years; here's whyTN election results trends weigh on Sun TV Network; stock tumbles over 9%Dr Lal PathLabs hits 20% upper band on strong Q4; brokerages stay positiveOnEMI Technology IPO Day 2 update: Subscription lags at 34%, GMP 2%The asset quality improved significantly, with GNPA declining by 13 bps Q-o-Q at 2.49 per cent in Q4FY26 as compared to 2.62 per cent in Q3FY26. The NNPA reduced by 20 bps Q-o-Q to 0.68 per cent in the reporting quarter as compared to 0.88 per cent in the preceding quarter.The Chennai headquartered lender's credit cost slipped to 1.11 per cent in the March quarter from 1.88 per cent in the December quarter and 2.74 per cent in the corresponding period a year ago. Its net slippages fell by 173 bps Q-o-Q to 0.79 per cent in the quarter under review.CHECKQ4 Results TodayEquitas Small Finance Bank share price targetPost quarterly results, Axis Direct has maintained 'Buy' recommendation on Equitas Small Finance Bank shares with a target price of ₹85, implying an upside of 15 per cent from the CMP.Analysts said that Equitas SFB appears to be coming out of the woods, with asset quality stress having stabilised, and credit costs normalising, supported by healthy performance across key portfolios and limited near-term impact from external geopolitical risks.The bank, analysts said, is gearing up for a sustainable growth phase, with strong disbursement momentum and a balanced portfolio mix. In Q4FY26, the bank reported highest ever overall disbursements at ₹7,347 crore, showing a growth of 72 per cent Y-o-Y and 12 per cent Q-o-Q."A steady improvement in RoA and consistent performance on asset quality remain key re-rating drivers for the bank," analysts said, adding that the stock is currently available at reasonable valuations, with a potential RoA recovery to 1.3 per cent by FY28.The brokerage has valued Equitas SFB at 1.3x FY28E vs current valuation of 1.0x FY28E.===============Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.