Equitas Small Finance Bank Limited (EQUITASBNK)
Micro CapFinancial Services stocks · Micro cap · NSE
Equitas Small Finance Bank is an SFB focused on financial inclusion, serving semi-formal and informal segments with diversified lending products like Small Business Loans, Vehicle Finance, and Housing Finance. It aims to be the banker of choice for these underserved segments, leveraging strong informal credit assessment capabilities.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 40/100Rev +19% YoY · +7% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,960 Cr | +18.9% | +6.8% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹184 Cr | NDF | -13.6% |
| PAT margin | 9.4% | +2297 bps | -221 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 Gross Advances grew 23% CAGR since FY17 to Rs 46,165 Crs, with Deposits up 42% CAGR to Rs 46,533 Crs. Q4FY26 RoA was 1.46%, up from 0.18% in Q1FY26, showing strong sequential momentum.
The bank demonstrates sustained growth in advances and deposits, with improving profitability metrics. Management's strategic focus on diversified secured assets, controlled microfinance exposure, and digital transformation supports long-term stability. The outlook for 20%+ advances growth and improving ROA suggests continued positive momentum, despite inherent risks in serving informal segments.
Asset Mix by Product (Gross Advances)
Latest issuer-disclosed distribution across 7 reported categories.
Small Business Loans (SBL)
SBL portfolio grew at a robust 27% CAGR between FY18-26, backed by residential property, and forms 40% of the asset mix.
Vehicle Finance (VF)
VF portfolio demonstrates steady growth, with incremental focus on scaling Used CV & Used Car segments through a 270+ branch network.
Housing Finance (HF)
HF portfolio grew at a 46% CAGR between FY20-26, catering to affordable housing needs and expanding through the existing SBL network.
Gold Loans
Gold loans are a strategic focus segment, transitioning to a broader footprint including asset branches to enhance reach and scalability.
Housing Finance Branch Expansion
Housing Finance is currently offered at 90 branches and plans to scale through 60 additional SBL branches in FY27.
Gold Loan Branch Expansion
Gold loans are currently available across ~200 liability and ~50 asset branches, with planned expansion to ~700 additional asset branches.
Liability Branch Network Expansion
Measured and calibrated expansion with ~57 branches added over the last 5 years; planned addition of ~10-20 branches annually.
Acceptance of SFBs by Depositors
Management notes increasing acceptance of 'Small Finance Banks' as a category by depositors, aiding liability growth.
Decreasing Landed Cost of Funds
Landed cost of funds is decreasing, which is expected to improve competitiveness over the medium term.
Large Unmet Credit Demand
An estimated ~84 lakh crore total lending opportunity exists, with ~42 lakh crore addressable for the banking system.
Regulated Banking Model
The highly regulated banking model is conducive for scale-up and provides a stable operating environment.
Compliance Cost
The bank faces ongoing compliance costs associated with its highly regulated banking model.
Perception Challenge
SFBs face a perception challenge, often viewed as different from a conventional bank by some segments.
Event-Driven and Political Risks
The customer base and segments served are exposed to event-driven and political risks, such as farm loan waivers.
Operational Risks in Informal Lending
Credit appraisal relies on field-based cash-flow evaluation, requiring a manpower-heavy operating model and consistency across geographies.
Fragile Credit Profiles
Customer base is characterized by relatively fragile credit profiles, making repayment capacity susceptible to income disruptions and external shocks.
Concentration Risk (Tamil Nadu)
Tamil Nadu & Pondicherry currently account for 45.29% of advances; strategic focus is to reduce this concentration below 35% long-term.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing long-term trends and annual performance, especially for AUM and deposit growth. QoQ comparison is vital for tracking sequential momentum in profitability (NIM, RoA) and asset quality (GNPA, NNPA, Credit Cost) in the financial services sector.
Gross Advances Growth (CAGR FY17-FY26)
Gross Advances grew at a CAGR of 23% from Rs 7,150 Crs in FY17 to Rs 46,165 Crs in FY26.
Deposits Growth (CAGR FY17-FY26)
Deposits grew at a CAGR of 42% from Rs 1,921 Crs in FY17 to Rs 46,533 Crs in FY26.
Net Interest Margin (NIM)
Q4FY26 NIM was 7.54%, up from 7.49% in Q3FY26. FY26 NIM was 7.50%.
Cost of Funds
Q4FY26 Cost of Funds was 5.67%, down from 5.75% in Q3FY26. FY26 Cost of Funds was 6.69%.
FY27 Advances Growth Outlook
Management expects 20%+ growth in overall advances for FY27, driven by growth across products.
FY27 ROA Outlook
Management expects to achieve an exit ROA of ~1.5% in Q4FY27, with a full-year FY27 ROA of ~1.2%.
FY31 Steady State ROA
Management projects a steady state ROA of ~1.5% by FY31, with a potential range of 1% to 1.8% across credit cycles.
Microfinance Exposure Strategy
MFI advances are expected to be maintained at around 10% of the overall advances going forward to balance earnings upside with controlled downside.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Overall Advances Growth | 23% CAGR (FY17-FY26) | Sustaining 20%+ growth in FY27 and beyond, as per management outlook. |
| Return on Assets (ROA) | Q4FY26: 1.46%, FY26: 1.10% | Achievement of exit ROA of ~1.5% in Q4FY27 and steady state ~1.5% by FY31. |
| Credit Costs | Q4FY26: 0.65%, FY26: 1.10% | Normalization and stabilization of credit costs towards FY27, following Q1FY26 impact. |
| Microfinance Exposure | ~10% of overall advances | Maintaining microfinance exposure at ~10% to manage event-driven risks. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
44NeutralSMA20 -3.5% / mo · MACD −
Technical chart
EQUITASBNKdaily · 1Y · AUTO+26.2%Daily technical trend read
Bearish setupTrend is weak — long-term uptrend intact. RSI 40.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~3.6% over last month) — short-term momentum negative.
- RSI(14) at 40 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 13% off 52W high · 42% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 16 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 16 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Cash flow contributes 3/10 to the score.
- Valuation contributes 7/30 to the score.
- Growth contributes 4/25 to the score.
Main drags
- Altman Z is 1.8, in distress territory.
- Fair-value margin of safety is negative at -673.5%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 20th percentile of the scored universe and 35th percentile within Financial Services. Main check: financial discipline is weak at 28/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-3316 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 35th pctile, median 62 · Micro: 13th pctile, median 73
74 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-3316 Cr.
- ▸Altman Z is 1.76.
- ▸ROCE is low at 6.4%.
- ▸ROE is low at 1.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 16.40
- P/B
- 1.36
- EV/EBITDA
- —
- Market Cap
- 8345.00Cr
Profitability
- ROE
- 1.68%
- ROCE
- 6.43%
- ROA
- 0.84%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- -23.00%
- Revenue 3Y
- 18.00%
- EPS 3Y
- -44.00%
Balance Sheet
- Debt/Equity
- 0.12
- Interest Coverage
- —
- Altman Z
- 1.75
- Book Value
- 53.70
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -3316.00 Cr
- EPS TTM
- 4.47
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 67%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.