Jana Small Finance Bank Hikes FY27 Profit Guidance to 100% Growth After Record Q2

Key numbers

Q2 Net Profit	₹170 Cr127% YoY Growth
FY27 PAT Guidance	~100%Revised from 80%
Net Interest Margin	7.54%vs 6.5% YoY
Price to Book	0.9xAdjusted BV

Key highlights

• Q2 FY27 PAT reached ₹170 crore, a 127% YoY increase, while H1 FY27 PAT of ₹326 crore matched the full-year FY26 total
• Management revised FY27 PAT growth guidance upwards to 100% from the previously stated 80%
• Net Interest Margin (NIM) improved to 7.54% from 6.5% YoY, supported by a 40 bps reduction in cost of deposits
• Secured assets now comprise 73.7% of the total loan book, up from 72.5% in March 2026
• Gross NPA moderated to 2.17% despite a 0.3% slippage impact from drought conditions in Assam, Maharashtra, and Karnataka

Record Profitability Triggers Guidance Revision

Jana Small Finance Bank delivered a robust performance in the second quarter of FY27, reporting a 127% year-on-year surge in net profit to ₹170 crore. Net Interest Income (NII) grew 35% YoY to ₹819 crore, driven by expanding margins and a portfolio shift toward secured products. The bank's profit for the first half of the fiscal year has already reached ₹326 crore, effectively matching its entire net profit for the previous full financial year.

Consequently, management has revised its annual PAT growth guidance upward to 100%, signaling high confidence in sustaining current momentum despite sectoral headwinds in unsecured lending.

Asset Quality and Microfinance Dynamics

• Gross NPA declined to 2.17% from 2.75% YoY, while Net NPA stood at 1.08% for the quarter.
• Management expects Net NPA to fall below 1% in Q3 FY27 following the settlement of a ₹68 crore claim lodged with CGFMU and CGTMSE.
• Drought conditions in Assam, Maharashtra, and Karnataka impacted slippages by approximately 0.3%.
• A single secured account contributed 0.2% to the slippage ratio as a one-time event.
• Microfinance (MFI) book growth remains subdued as the bank tightens selection criteria, with 97% of new customers having two or fewer lenders.
• Gold loan growth of 81.4% YoY faced a slow quarter sequentially due to price volatility and subsequent margin calls.

Management on Strategic Guidance

PAT for H1 FY27 at Rs. 326 Crs v/s PAT Full year FY 26 of Rs. 326 Crs. Hence, guidance of 80% increase in PAT revised upwards to 100%

Secured Portfolio Expansion and Capital Pipeline

The bank continues to pivot toward secured assets, which now represent 73.7% of total advances. Significant growth was observed in high-yield segments, with Vehicle Loans growing 76% and Gold Loans up 81% year-on-year. Deposit growth remained steady at 17.5% YoY, reaching ₹38,221 crore.

Regarding capital infusion, JSFB expects to receive ₹626 crore over the next 15 months through the conversion of share warrants priced at ₹464 per share. This follows a previous receipt of ₹103 crore in June 2026, part of a proposed stake acquisition by the TVS Venu Group that remains subject to final regulatory approvals from the Reserve Bank of India.

What to watch next

• Settlement of ₹68 crore CGFMU/CGTMSE claim expected in Q3 FY27 to bring NNPA below 1%
• RBI approval for the TVS Venu Group stake acquisition via share warrant conversion
• Effective leadership transition with the Head of Internal Audit retiring on 02nd December 2026
• Expansion of 38 remaining planned branch openings in H2 FY27 to meet the annual target of 78

“Slippage to start downward trend following drop in SMA. One single account impacting by 0.2% in Slippages which is a secured loan.”

“Collection efficiency has improved to pre-stress levels across all buckets for the overall Unsecured book: over 99% B0 collection efficiency consistently in Q2 FY 27.”

Jana Small Finance Bank · financial snapshot

Share price	₹391.65
Market capitalisation	₹4,144.52 Cr
Revenue (annual)	₹5,352.86 Cr
Net profit (annual)	₹326.43 Cr
Revenue (latest quarter)	₹1,514.53 Cr+4.84% vs previous quarter
Net profit (latest quarter)	₹155.23 Cr+11.02% vs previous quarter
P/E (TTM)	10.91×Sector 20.59×
Promoter holding	16.87%-0.07% QoQ
FII holding	5.1%Current quarter

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