The bank's profit after tax surged 803.23% year-on-year and 18.75% quarter-on-quarter to Rs 218.04 crore in Q2 FY27, compared with Rs 24.14 crore in Q2 FY26 and Rs 183.61 crore in Q1 FY27.

Total income increased 27.69% year-on-year and 6.41% sequentially to Rs 2,357.51 crore.

Net interest income rose 32.58% year-on-year to Rs 1,025.72 crore, but declined 0.38% sequentially. Net interest margin stood at 6.69%, down 55 basis points from the preceding quarter. The bank's cost of funds increased seven basis points to 7.12% from 7.05% in Q1 FY27.

Profit before tax stood at Rs 287.38 crore in Q2 FY27, up 17.74% vs previous quarter and 756.83% vs year-ago quarter. Provisions and contingencies declined 44.45% year-on-year and 28.43% sequentially to Rs 114.99 crore. Pre-provision operating profit rose 67.26% year-on-year to Rs 402.37 crore, but declined 0.58% quarter-on-quarter.

The bank's asset quality improved sequentially. Gross non-performing assets declined to 2.29% in Q2 FY27 from 2.42% in Q1 FY27 and 2.92% in Q2 FY26. Net NPAs eased to 0.70% from 0.71% in the preceding quarter and 0.98% a year earlier. Net slippages improved to 1.39% from 1.43% in Q1FY27, while credit cost declined to 0.94% from 1.37% in Q1FY27.

The provision coverage ratio stood at 70.08%, or 86.73% including technical write-offs. The cost-to-income ratio was 69.36%, compared with 68.38% in Q1 FY27 and 75.89% in Q2 FY26.

Gross advances grew 30% year-on-year and 6% sequentially, crossing Rs 50,000 crore. Deposits increased 19% year-on-year and 7% quarter-on-quarter, also crossing Rs 50,000 crore. Consequently, total business crossed the Rs 1 lakh crore milestone. The CASA ratio stood at 26% during the quarter.

Overall disbursements rose 38% year-on-year and 10% sequentially to Rs 7,450 crore. Non-microfinance advances grew 24%, led by growth of 38% in micro and small enterprise advances, 27% in housing finance and 193% in gold loans. Used-car and used commercial vehicle advances increased 29% and 21%, respectively.

The bank's net worth stood at Rs 6,553 crore as of 30 September 2026. Its capital adequacy ratio was 20.92%, comprising Tier I capital of 16.35% and Tier II capital of 4.57%. The liquidity coverage ratio stood at 173.30% during the quarter.

Equitas Small Finance Bank is among India's largest small finance banks, offering banking products and services to underserved individuals, affluent customers, small and medium enterprises, and corporates.