Shares of State Bank of India (SBI) increased 2.3% to their day’s high of Rs 822.85 on the BSE on Monday after the nation’s biggest loan provider reported a 12% year-on-year (YoY) increase in standalone net revenue for the June quarter (Q1FY26), post which, brokerage companies raised the stock’s target rate as high as Rs 955.
SBI’s revenue for the quarter stood at Rs 19,160 crore, up from Rs 17,035 crore in the matching duration in 2015, going beyond Street quotes of Rs 17,095 crore. The bank’s interest earnings increased 6% to Rs 1,17,996 crore throughout the quarter, compared to Rs 1,11,526 crore in the year-ago duration.
On the expense side, interest expenses increased 9% to Rs 76,923 crore from Rs 70,401 crore in the exact same quarter in 2015.
Post the bank’s Q1 outcomes, here’s what experts throughout numerous brokerage companies stated:
Motilal Oswal: Buy|Target rate: Rs 925
Motilal Oswal preserved a ‘purchase’ ranking on the stock with a target cost 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 regulated 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, generally on lower worker and other costs.
Loan book grew 12% YoY, deposits increased 11.7% YoY, and CASA ratio decreased 61 bps QoQ to 39.4%. Slippages were Rs 8,393 crore (0.75% ratio), GNPA increased 1 bp QoQ to 1.83%, and NNPA stayed at 0.47%, with PCR at 74.5%.
JM Financial: Buy|Target rate: Rs 950
JM Financial kept a ‘purchase’ ranking on the stock with a target cost of Rs 950.
SBI published Q1FY26 PAT development of 12% YoY and 3% QoQ, about 15% above price quotes, with RoA/RoE at ~ 1.1%/ 17%. Loan development was steady at 12% YoY, supported by home and worldwide sections. NII fell 4% QoQ due to a 16 bps drop in NIM to 2.65%, however greater core cost earnings and lower opex drove 13% QoQ PPOP development. Property quality remained steady, with slippages and SMA book stable YoY, and credit expense down 18 bps QoQ to 46 bps.
Management restated FY26 assistance of 12% credit development, 3% domestic NIM, and slippages listed below 0.6%, at 0.9 x FY27E Adj. BVPS, evaluations stay appealing.
Antique: Buy|Target rate: Rs 955
Antique Stock Broking has actually preserved its ‘Buy’ ranking on State Bank of India (SBI) with a target cost of Rs 955.
The brokerage stated greater other earnings and lower business expenses drove the profits beat. It has, nevertheless, cut its FY26 and FY27 development approximates to 12% and 13%, respectively, from 13% and 14%, pointing out soft system development.
The modified quotes likewise consider lower business expenses and greater credit expenses. Antique thinks about evaluations appealing, supported by a healthy typical RoA/RoE of 1% and 15% for FY26– 28.
Avendus: Buy|Target cost: Rs 938
Avendus has actually updated State Bank of India (SBI) to a ‘Buy’ from ‘Add’ and raised its target rate to Rs 938 from Rs 852.
The brokerage anticipates faster-than-system development, together with other earnings and running cost levers, to balance out the NIM effect from rate cuts. It predicts SBI’s FY26 NIM at 2.7%, supported by greater cost savings account rate cuts than earlier prepared for.
Slippages for FY26E are approximated at 0.7% on strong possession quality. RoA/RoE is anticipated to moderate from 1.1%/ 18.6% in FY25 to 1.0%/ 15.1% in FY26E. Avendus has actually increased the target numerous to 1.1 x Jun-27E ABV and projections revenues and core ABV CAGR at 4.3% and 17.3%, respectively, over FY25– 27E.
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(Disclaimer: Recommendations, tips, views and viewpoints offered by the professionals are their own. These do not represent the views of The Economic Times)