Federal Bank Q2 FY27 Results: Consolidated Net Profit Surges 53.4% YoY to ₹1,564 Crore

Key numbers

1-Year Price Change	54.85%Stock Performance
Market Cap	₹82,488 CrBanking Industry
P/E TTM	17.61Sector PE: 21.33
Institutional Holding	76.98%Institutional Stake

Key highlights

• Consolidated net profit reached ₹1,564 crore, up 20.5% sequentially from ₹1,298 crore
• Total income crossed ₹9,903 crore, driven by ₹8,383 crore in revenue from operations
• Operating margin improved to 21.4% from 16.5% in the same quarter last year
• Standalone Gross NPA ratio declined to 1.32% compared to 1.83% in September 2025
• Net NPA ratio stood at a healthy 0.17% versus 0.48% on a year-on-year basis

Revenue Mix and Segment Performance

The Federal Bank Limited reported consolidated total income of ₹9,903 crore for Q2 FY27, a significant rise from ₹8,322 crore in the same quarter last year. Operating revenue contributed ₹8,383 crore to this total. The bank standalone retail banking segment, which includes its digital banking operations, generated revenue of ₹8,645 crore.

Meanwhile, the corporate and wholesale banking division recorded ₹3,804 crore. Notably, the bank transitioned its ESOP accounting policy from the intrinsic value method to the fair value method effective April 2026. This change resulted in a ₹32.73 crore increase in standalone employee costs for the quarter, though the operating margin still expanded to 21.4%.

Asset Quality and Capital Position

• Standalone Gross NPA fell to ₹3,990 crore (1.32%) from ₹4,532 crore (1.83%) year-on-year
• Net NPA declined to ₹492 crore (0.17%) from ₹1,165 crore (0.48%) in the prior year period
• The bank maintained a healthy Capital Adequacy Ratio of 16.84% under Basel III regulations
• Standalone net worth reached ₹41,126 crore as of September 30, 2026
• Provisions other than tax for the quarter stood at ₹342 crore on a standalone basis

Subsidiary and Group Contributions

Consolidated results for the quarter include performance from subsidiaries Fedbank Financial Services Limited and Federal Operations and Services Limited, along with associate Ageas Federal Life Insurance Company. The two subsidiaries combined reflected total revenues of ₹758 crore for the quarter. Ageas Federal Life Insurance contributed ₹4.15 crore to the group net profit.

The group consolidated net worth reached ₹43,948 crore as of September 30, 2026. Total consolidated assets stood at ₹4,43,260 crore, representing growth from the ₹3,67,566 crore reported in September 2025. This expansion highlights the bank scaling operations across both its core banking and diversified financial services arms.

What to watch next

• Next quarterly results announcement expected in January 2027
• Review of credit cost guidance against the 50-60 bps target for FY27
• Implementation of updated Pillar 3 disclosures on the bank's website

The Federal Bank · financial snapshot

Share price	₹333.6
Market capitalisation	₹82,488.57 Cr
Revenue (annual)	₹29,674.10 Cr
Net profit (annual)	₹4,345.30 Cr
Revenue (latest quarter)	₹7,861.58 Cr-1.07% vs previous quarter
Net profit (latest quarter)	₹1,256.09 Cr-6.33% vs previous quarter
P/E (TTM)	17.61×Sector 21.33×
Promoter holding	0%0.00% QoQ
FII holding	27.71%Current quarter

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