3 weeks ago
SBI Q1FY27 results beat market estimates; should you buy?
There is a very big bank in India called the State Bank of India, or SBI for short.
Big companies like SBI have to tell people how much money they made every few months.
SBI just shared its results for the first three months of its new financial year.
It made a profit of about ₹21,121 crore, which is more than many experts expected.
That is about 10% more money than it made at the same time last year.
One big reason is that the bank is giving out more loans and earning more interest on them.
When the good news came out, the price of SBI's share went up on the stock market.
Some experts think people should buy SBI shares because the bank is doing well and the price may keep rising.
Another expert says the price may stay mixed for a while before it goes higher.
The bank is also keeping plenty of money saved up in case some loans cannot be paid back.
SBI reported Q1 FY27 standalone net profit of ₹21,121 crore, up 7.3% quarter-on-quarter and 10.2% year-on-year, beating market estimates (Systematix pegs PAT at ₹21,102 crore, 8.4% above Bloomberg consensus).
Net Interest Income surged 14.88% year-on-year to ₹46,992 crore, while domestic Net Interest Margin expanded 7 basis points to 3.00% and whole bank NIM rose to 2.86%.
Whole bank advances grew 18.63% year-on-year to ₹50.47 lakh crore and total deposits rose 9.73% to ₹60.06 lakh crore, with the CASA ratio at 39.24% as of June 30, 2026.
SBI shares hit an intraday high of ₹1,124.50 on the NSE after the results before closing at ₹1,097, up over 1% from the previous close.
Systematix raised its target price on SBI to ₹1,300 from ₹1,250 with a BUY rating, while Angel One's technical analyst sees the stock as range-bound within ₹940-1,220 with immediate resistance at ₹1,115-1,135.
- Who
- State Bank of India (SBI), India's state-owned bank, with comment from analysts at SMC Global Securities, Systematix and Angel One.
- What
- Announced Q1 FY27 quarterly results, reporting standalone net profit of ₹21,121 crore, up 10.2% year-on-year and beating market estimates.
- Where
- India; the bank's shares trade on the National Stock Exchange (NSE).
- When
- Friday, for the quarter ended June 30, 2026 (Q1 of financial year 2026-27).
- Why
- Earnings growth was driven by a 14.88% year-on-year surge in net interest income, margin expansion, and strong loan growth across SME, corporate and agriculture segments.
Bullish: Buy on Strong Fundamentals
Cautious: Range-Bound Technicals
Should investors buy SBI shares after Q1 results?
Bullish: Buy on Strong Fundamentals
Systematix maintains a BUY rating on SBI and raised its target price to ₹1,300 from ₹1,250, citing strong Q1 earnings, management guidance of 14-15% advances growth for FY27, and valuation at 1.5x FY28E adjusted book value.
Cautious: Range-Bound Technicals
Angel One's Hitesh Rathi says the stock remains technically range-bound with strong overhead supply in the ₹1,200-1,220 zone and immediate resistance at ₹1,115-1,135; a decisive breakout is needed to confirm a sustained uptrend.
Key facts
- Standalone net profit (Q1 FY27)
- ₹21,121 crore; up 7.3% QoQ and 10.2% YoY
- Net Interest Income
- ₹46,992 crore; up 14.88% YoY
- Net Interest Margin
- Domestic 3.00% (up 7 bps QoQ); Whole Bank 2.86% (up 5 bps QoQ)
- ROA / ROE
- 1.11% / 17.87%
- Whole Bank Advances
- ₹50.47 lakh crore; up 18.63% YoY; RAM portfolio up 18.20% YoY
- Deposits / CASA ratio
- ₹60.06 lakh crore; up 9.73% YoY; CASA ratio 39.24%
- Capital adequacy
- CRAR 15.67%; Tier-I 13.90%; CET-1 12.89%
- Share price and rating
- NSE close ₹1,097 (up over 1%); intraday high ₹1,124.50; Systematix BUY with target ₹1,300
Quotes
Siddharth Rajpurohit
Lead Analyst – Banking and Non‑Lending Financials at Systematix
“Profitability was further bolstered by sequential margin expansion, as the Whole Bank Net Interest Margin rose by 5 basis points quarter‑on‑quarter to 2.86% and Domestic NIM expanded by 7 basis points quarter‑on‑quarter to 3.00%.”
livemint.com
“SBI’s technical structure remains largely range‑bound, indicating continued uncertainty in the stock’s near‑term direction.”
livemint.com
Sources
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