SBI’s profit for the quarter stood at Rs 19,160 crore, up from Rs 17,035 crore in the corresponding period last year, surpassing Street estimates of Rs 17,095 crore. The bank’s interest income rose 6% to Rs 1,17,996 crore during the quarter, compared with Rs 1,11,526 crore in the year-ago period.
On the expenditure side, interest costs increased 9% to Rs 76,923 crore from Rs 70,401 crore in the same quarter last year.
Post the bank’s Q1 results, here’s what analysts across various brokerage firms said:
Motilal Oswal: Buy| Target price: Rs 925
Motilal Oswal maintained a ‘buy’ rating on the stock with a target price of Rs 925.
State Bank of India (SBI) reported Q1FY26 PAT of Rs 19,160 crore, a 13% beat, driven by strong treasury gains and controlled opex. NII fell 4% QoQ to Rs 41,070 crore, with NIM down 10 bps QoQ to 2.9%. Opex dropped 22% QoQ to Rs 27,278 crore, mainly on lower employee and other expenses.Loan book grew 12% YoY, deposits rose 11.7% YoY, and CASA ratio declined 61 bps QoQ to 39.4%. Slippages were Rs 8,393 crore (0.75% ratio), GNPA rose 1 bp QoQ to 1.83%, and NNPA remained at 0.47%, with PCR at 74.5%.
JM Financial: Buy| Target price: Rs 950
JM Financial maintained a ‘buy’ rating on the stock with a target price of Rs 950.
SBI posted Q1FY26 PAT growth of 12% YoY and 3% QoQ, about 15% above estimates, with RoA/RoE at ~1.1%/17%. Loan growth was stable at 12% YoY, supported by home and international segments. NII fell 4% QoQ due to a 16 bps drop in NIM to 2.65%, but higher core fee income and lower opex drove 13% QoQ PPOP growth. Asset quality stayed stable, with slippages and SMA book steady YoY, and credit cost down 18 bps QoQ to 46 bps.
Management reiterated FY26 guidance of 12% credit growth, 3% domestic NIM, and slippages below 0.6%, at 0.9x FY27E Adj. BVPS, valuations remain attractive.
Antique: Buy| Target price: Rs 955
Antique Stock Broking has maintained its ‘Buy’ rating on State Bank of India (SBI) with a target price of Rs 955.
The brokerage said higher other income and lower operating expenses drove the earnings beat. It has, however, trimmed its FY26 and FY27 growth estimates to 12% and 13%, respectively, from 13% and 14%, citing muted system growth.
The revised estimates also factor in lower operating expenses and higher credit costs. Antique considers valuations attractive, supported by a healthy average RoA/RoE of 1% and 15% for FY26–28.
Avendus: Buy| Target price: Rs 938
Avendus has upgraded State Bank of India (SBI) to a ‘Buy’ from ‘Add’ and raised its target price to Rs 938 from Rs 852.
The brokerage expects faster-than-system growth, along with other income and operating expense levers, to offset the NIM impact from rate cuts. It projects SBI’s FY26 NIM at 2.7%, supported by higher savings account rate cuts than earlier anticipated.
Slippages for FY26E are estimated at 0.7% on strong asset quality. RoA/RoE is expected to moderate from 1.1%/18.6% in FY25 to 1.0%/15.1% in FY26E. Avendus has increased the target multiple to 1.1x Jun-27E ABV and forecasts earnings and core ABV CAGR at 4.3% and 17.3%, respectively, over FY25–27E.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)