State Bank of India Posts Robust Profit Growth on Stronger Margins
India's largest bank reported a 13.7% YoY rise in profit, with net profit margin expanding to 18% in the June quarter.
SBI's Q1 FY27 profit surged 21.9% sequentially to ₹24,579 crore, driven by revenue growth and a significant expansion in net profit margin.
State Bank of India kicked off the new fiscal year with a strong quarter, delivering robust profit growth supported by expanding margins. The bank's net profit for Q1 FY27 rose 13.7% year-on-year and jumped an impressive 21.9% compared to the previous quarter, signalling a powerful start.
The performance was underpinned by healthy revenue growth of 8.5% YoY and 3.9% sequentially. More importantly, the bank's net profit margin expanded significantly to 18.0%, up from 15.4% in Q4 FY26 and 17.2% in the same quarter last year. This margin expansion indicates improved profitability per rupee of revenue, a positive sign of operating leverage.
A look at the last five quarters shows a steady upward trajectory in revenue, while profit has shown more volatility before this quarter's sharp rebound.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 136,240.49YoY +8.5% | 131,080.12 | 125,563.08 |
| Profit (₹ Cr) | 24,579.04YoY +14% | 20,161.30 | 21,626.64 |
| Net Profit Margin (%) | 18.0YoY +4.7% | 15.4 | 17.2 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 16.8%, suggesting the latest quarter's performance is a positive step up.
- The bank maintains a solid return on equity (ROE) of 16.68%.
- The stock has delivered strong returns, up 31.8% over the past year and 84.0% over three years.
- Despite this performance, SBI trades at a P/E of 10.9, a discount of about 13.6% to the industry average.
The latest results set a high benchmark for profitability, with the key question being whether SBI can sustain this elevated margin level in the coming quarters.
Live Chart
· SBIN
(BSE)
ISIN: INE062A01020
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