ESAF Small Finance Bank Net Profit Swings to ₹160 Crore in Q2 FY27; Margin Hits 15.5%

Key numbers

1-Year Price Change	38.55%Growth
Market Cap	₹2,111.1 CrBanking & Finance
Revenue TTM	₹3,806.7 CrOperating
Promoter Holding	63.23%Stable

Key highlights

• Net profit reached ₹160 crore, representing a 238.3% year-on-year turnaround from a loss of ₹116 crore
• Revenue from operations grew 43.3% year-on-year to ₹1,175 crore from ₹820 crore
• Operating margin expanded significantly to 15.5%, up from 7.9% in the preceding quarter
• Asset quality improved sharply with Gross NPA ratio declining to 2.84% from 8.54% in Q2 FY26
• The Board of Directors recommended the re-appointment of George Kalaparambil John as Executive Director

Revenue and Profit Growth Dynamics

ESAF Small Finance Bank's financial performance in Q2 FY27 was marked by a substantial recovery in profitability, with net profit reaching ₹160 crore. This represents a 100% sequential increase from the ₹80.1 crore reported in the June 2026 quarter and a complete reversal from the ₹116 crore net loss recorded in the year-ago period. Total income for the period stood at ₹1,388 crore, bolstered by ₹1,175 crore in revenue from operations.

The bank's operating margin improved to 15.5%, reflecting improved cost efficiencies and a turnaround from the negative 16.1% margin recorded in Q2 FY26.

Asset Quality and Operational Metrics

• Gross Non-Performing Assets (NPA) ratio improved to 2.84% as of September 30, 2026, down from 8.54% a year earlier
• Net NPA ratio declined to 0.34%, significantly lower than the 3.83% reported in September 2025
• Net worth of the bank increased to ₹2,023.24 crore from ₹1,748.50 crore in the previous year
• Capital Adequacy Ratio (CAR) under Basel II stood at 24.14% at the end of the quarter
• Provisions and contingencies for the period were maintained at ₹147.89 crore to manage credit risk

Management Transition and Board Appointments

The Board has recommended the re-appointment of Shri George Kalaparambil John as a Whole Time Director, designated as Executive Director, for a three-year term effective from May 18, 2027. John, who currently oversees IT and Operations, has over 30 years of experience and played a significant role in scaling the bank's microfinance business. This leadership recommendation is subject to necessary approvals from the Reserve Bank of India and the bank's shareholders.

The bank confirmed that the appointee is not disqualified from holding office under any SEBI order or the Companies Act, 2013.

Strategic Targets and Growth Outlook

• Management is targeting a loan asset growth rate between 22% and 25% for the full 2026-27 fiscal year
• The bank maintains a target to achieve 70% secured assets in total gross advances by March 31, 2027
• The ESAF 2.0 StratoNeXt digital transformation program is scheduled for full completion by December 31, 2026
• Provisioning on standard assets remains robust at ₹17.45 crore as of September 30, 2026

What to watch next

• Completion of ESAF 2.0 StratoNeXt digital transformation program by December 31, 2026
• RBI approval for the re-appointment of George Kalaparambil John as Executive Director
• Achievement of the 70% secured asset target by March 31, 2027

ESAF Small Finance Bank · financial snapshot

Share price	₹40.9
Market capitalisation	₹2,111.10 Cr
Revenue (annual)	₹3,537.18 Cr
Net profit (annual)	-₹166.40 Cr
Revenue (latest quarter)	₹1,097.77 Cr+10.32% vs previous quarter
Net profit (latest quarter)	₹80.08 Cr+240.62% vs previous quarter
P/E (TTM)	-413.93×Sector 19.7×
Promoter holding	63.23%-0.02% QoQ
FII holding	0.19%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.