Suryoday Small Finance Bank Q4FY26: Net Profit ₹4,972 Lakhs; Asset Quality Improves QoQ

Suryoday Small Finance Bank posted a robust financial performance for the quarter and year ended March 31, 2026, with its Board of Directors approving the audited financial results at a meeting held on May 07, 2026. The bank recorded a net profit of ₹4,972 lakhs in Q4FY26, reversing a net loss of ₹3,378 lakhs in the corresponding quarter of the previous year. For the full financial year ended March 31, 2026, net profit rose to ₹15,197 lakhs from ₹11,497 lakhs in FY25, reflecting steady growth across income streams and improved provisioning metrics. The financial results were audited by joint statutory auditors M/s. Mukund M. Chitale & Co. and M/s. Gokhale & Sathe, Chartered Accountants, who issued an unmodified audit opinion.

Financial Performance Highlights

The bank's total income for Q4FY26 stood at ₹69,189 lakhs, up from ₹53,068 lakhs in Q4FY25. Interest earned for the quarter rose to ₹60,159 lakhs from ₹47,058 lakhs in Q4FY25, driven primarily by higher interest and discount on advances. For the full year, total income increased to ₹2,51,996 lakhs from ₹2,17,100 lakhs in FY25. The following table summarises the key financial metrics:

Metric: Q4FY26 Q3FY26 Q4FY25 FY26 FY25 Interest Earned (₹ Lakhs): 60,159 54,387 47,058 2,16,029 1,95,375 Other Income (₹ Lakhs): 9,030 8,088 6,010 35,967 21,725 Total Income (₹ Lakhs): 69,189 62,475 53,068 2,51,996 2,17,100 Total Expenditure (₹ Lakhs): 58,492 53,574 48,404 2,13,591 1,78,180 Operating Profit (₹ Lakhs): 10,697 8,901 4,664 38,405 38,920 Provisions & Contingencies (₹ Lakhs): 4,132 4,122 9,342 18,448 24,537 Net Profit / (Loss) (₹ Lakhs): 4,972 3,656 (3,378) 15,197 11,497

Asset Quality and Key Ratios

The bank's asset quality showed improvement both on a quarter-on-quarter and year-on-year basis. Gross NPAs as a percentage of gross advances declined to 6.55% as at March 31, 2026, from 6.69% as at December 31, 2025 (QoQ), and from 7.16% as at March 31, 2025 (YoY). Net NPAs as a percentage of net advances also improved to 4.21% from 4.35% QoQ and from 4.58% YoY. The Capital Adequacy Ratio (CRAR), computed as per RBI directions, stood at 20.45% as at March 31, 2026, compared to 21.94% as at December 31, 2025 and 25.83% as at March 31, 2025. The bank carries a floating provision of ₹5,917 lakhs as on March 31, 2026, of which ₹2,210 lakhs was created during the year.

Ratio: 31.03.2026 31.12.2025 31.03.2025 Gross NPA (%): 6.55% 6.69% 7.16% Net NPA (%): 4.21% 4.35% 4.58% Capital Adequacy Ratio (%): 20.45% 21.94% 25.83% Basic EPS (₹): 4.68 3.44 (3.18) Diluted EPS (₹): 4.68 3.44 (3.18) Return on Assets (%)*: 0.27% 0.22% (0.23%) Net Worth (₹ Lakhs): 2,05,473 1,98,074 1,90,014 Debt Equity Ratio: 1.50 0.83 1.41 Total Debts to Total Assets (%): 15.70% 9.86% 17.36%

Figures for the respective quarter ended are not annualized.

Balance Sheet Overview

The bank's total assets grew to ₹19,88,396 lakhs as at March 31, 2026, from ₹15,61,439 lakhs as at March 31, 2025. Advances increased to ₹12,87,876 lakhs from ₹9,97,435 lakhs, while deposits rose significantly to ₹13,99,404 lakhs from ₹10,57,961 lakhs. Reserves and surplus stood at ₹1,97,203 lakhs as at March 31, 2026, compared to ₹1,82,081 lakhs in the previous year.

Balance Sheet Item: 31.03.2026 (₹ Lakhs) 31.03.2025 (₹ Lakhs) Capital: 10,629 10,628 Reserves and Surplus: 1,97,203 1,82,081 Deposits: 13,99,404 10,57,961 Borrowings: 3,12,236 2,71,029 Other Liabilities and Provisions: 68,924 39,740 Total Assets/Liabilities: 19,88,396 15,61,439 Cash and Balances with RBI: 1,71,372 1,46,614 Investments: 3,69,256 3,13,748 Advances: 12,87,876 9,97,435 Fixed Assets: 29,804 29,014 Other Assets: 91,583 50,304

Cash Flow Summary

For the year ended March 31, 2026, the bank generated net cash flow from operating activities of ₹65,233 lakhs, compared to ₹1,31,998 lakhs in the previous year. Net cash used in investing activities stood at ₹79,157 lakhs, while net cash flow from financing activities was ₹41,213 lakhs. Cash and cash equivalents at the end of the year stood at ₹1,97,584 lakhs, up from ₹1,70,295 lakhs at the beginning of the year.

Cash Flow Item: FY26 (₹ Lakhs) FY25 (₹ Lakhs) Net Cash Flow from Operating Activities: 65,233 1,31,998 Net Cash Used in Investing Activities: (79,157) (1,05,899) Net Cash Flow from Financing Activities: 41,213 26,832 Net Increase in Cash and Cash Equivalents: 27,289 52,931 Cash and Cash Equivalents at End of Year: 1,97,584 1,70,295

Segment Performance

Retail Banking remained the dominant revenue contributor, generating segment revenue of ₹2,34,263 lakhs for FY26, compared to ₹2,03,911 lakhs in FY25. The Treasury segment contributed revenue of ₹30,275 lakhs in FY26 versus ₹23,861 lakhs in FY25, while the Corporate segment reported revenue of ₹16,244 lakhs against ₹12,341 lakhs in FY25. Other Banking Operations contributed ₹5,216 lakhs in FY26 compared to ₹3,442 lakhs in FY25. Total segment assets expanded to ₹19,88,396 lakhs as at March 31, 2026, from ₹15,61,439 lakhs as at March 31, 2025.

Segment: Revenue FY26 (₹ Lakhs) Revenue FY25 (₹ Lakhs) Assets 31.03.2026 (₹ Lakhs) Assets 31.03.2025 (₹ Lakhs) Treasury: 30,275 23,861 5,84,316 4,84,537 Retail Banking: 2,34,263 2,03,911 11,68,302 9,00,326 Corporate: 16,244 12,341 2,32,675 1,67,441 Other Banking Operations: 5,216 3,442 661 971 Total: 2,85,998 2,43,555 19,88,396 15,61,439

Loan Transfers and Other Disclosures

During the year ended March 31, 2026, the bank transferred loans not in default through assignment, with aggregate principal outstanding of ₹13,661.84 lakhs and aggregate consideration received (including interest) of ₹12,978.75 lakhs. The weighted average residual maturity was 28.12 months and the weighted average holding period was 20.59 months, with retention of beneficial economic interest at 13%. Additionally, the bank transferred stressed loans to ARCs involving 1 account with aggregate principal outstanding of ₹1,166 lakhs and aggregate consideration of ₹566 lakhs. The bank also recognised an estimated incremental impact of ₹18.13 lakhs under employees cost during the year ended March 31, 2026, on account of the New Labour Codes notified by the Government of India on November 21, 2025.

Dividend and Corporate Actions

The Board of Directors recommended a final dividend of ₹1.50 (Rupee One and Fifty Paise) per equity share of face value ₹10 each, representing 15% of face value, out of profits for the financial year ended March 31, 2026. The dividend is subject to shareholder approval at the ensuing Annual General Meeting. The Board also approved the initiation of a Postal Ballot process to seek shareholder approval for the appointment of two Independent Directors:

Mr. Sunil Satyapal Gulati (DIN: 00016990) — appointed as Independent Director for a period of five consecutive years effective March 12, 2026 to March 11, 2031, not liable to retire by rotation.

Mr. Alok Sethi (DIN: 00277481) — appointed as Independent Director for a period of five consecutive years effective March 12, 2026 to March 11, 2031, not liable to retire by rotation.

Additionally, the Board deliberated on the agenda item relating to the raising of funds through equity and debt securities and decided to take up the matter for detailed discussion at a subsequent meeting. The bank confirmed that during the quarter and year ended March 31, 2026, it did not issue any non-convertible debt securities and has no outstanding secured listed non-convertible debt securities as on March 31, 2026.

Source: None/Company/INE428Q01011/6ec11f7b512a4c3e.pdf

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