State Bank of India Posts Strong Profit Growth as Margins Expand
India's largest bank reported a 13.7% YoY profit jump, with net profit margin climbing to 18% in the June quarter.
State Bank of India's Q1 FY27 earnings show robust growth, with profit rising sharply both year-on-year and sequentially. The bank's net profit margin expanded significantly, indicating improved profitability.
State Bank of India kicked off the new fiscal year with a strong earnings report, demonstrating healthy growth in both revenue and profit. The bank's profit surged 21.9% compared to the previous quarter, a significant acceleration that highlights improving operational momentum.
Revenue for the quarter ended June 2026 stood at ₹1,36,240 crore, an 8.5% increase from the same period last year. Profit after tax grew even faster, rising 13.7% year-on-year to ₹24,579 crore. This faster profit growth translated into an expansion of the net profit margin, which improved by 80 basis points year-on-year to reach 18.0%.
A look at the recent quarterly performance shows a clear uptrend in revenue and a notable profit rebound in the latest quarter.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 1,36,240YoY +8.5% | 1,31,080 | 1,25,563 |
| Profit (₹ Cr) | 24,579YoY +14% | 20,161 | 21,627 |
| Net Profit Margin (%) | 18.0YoY +4.7% | 15.4 | 17.2 |
The bank's trailing twelve-month (TTM) net profit margin stands at 16.8%, with TTM profit at ₹88,121 crore. This solid earnings performance is reflected in the stock's strong long-term returns, which have delivered a 90.4% absolute return over the past three years, equivalent to a 23.9% annualised gain.
Key Points
- The bank maintains a robust return on equity (ROE) of 16.68%.
- Its valuation, at a price-to-earnings (P/E) ratio of 10.9, trades at a 13% discount to the industry average.
Overall, SBI's latest earnings show it is effectively converting steady revenue growth into stronger profitability, a positive signal for the nation's banking bellwether.
Live Chart
· SBIN
(BSE)
ISIN: INE062A01020
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