Remaining in a selling zone for the second straight day, shares of (SBI) dropped another 4.5% in Monday’s trade on May 11 to hit a four-month low of ₹975 apiece, as investors continued to dump the counter following the lender’s earnings miss in the March quarter.
The two-day selloff has dragged the stock down by a cumulative 11%, eroding nearly ₹1,11,683 crore in market capitalisation and pulling the lender’s valuation below the ₹9 lakh crore mark to ₹8,99,925 lakh crore.
The lender announced its Q4 and fiscal 2025-2026 results on Friday during market hours, which came in below Street estimates. The impact was immediately reflected in the stock, which suffered a sharp decline and ended the session with a steep 7% loss.
Domestic brokerage firm Motilal Oswal said SBI reported a mixed quarter, impacted by a decline in NII and contraction in NIM due to repo rate transmission, MCLR cuts, and migration of select corporate loans from MCLR-linked rates to T-bill-linked rates. Treasury profits were also weaker during the quarter amid a spike in bond yields.
Asset quality remained resilient overall, although slippages were slightly higher in 4Q, reflecting the seasonality typically seen across PSU banks.
Consequently, the brokerage trimmed its earnings estimates by 3% and 5% for FY27 and FY28, respectively, as it cut NIM estimates, partly offset by lower provisions. However, it maintained its ‘buy’ rating on the stock with a target price of ₹1,300 apiece.
“SBI’s core fundamentals are stable, and delivery on growth along with controlled credit costs should support return ratios sustaining above 1%. However, we believe these outcomes will be overshadowed by the NIM/NII performance in FY27E,” said JM Financial.
The brokerage expects SBI to maintain a 1% RoA and an average RoE of 14% over FY26–28E. It broadly maintained its EPS estimates but revised its target price marginally to ₹1,200 from the earlier ₹1,210, valuing the stock at 1.3x FY28E BVPS.
Similarly, Axis Direct also lowered its on SBI to ₹1,285 apiece from the earlier ₹1,350 apiece, while retaining its ‘buy’ rating.
SBI Q4 Results 2026
State Bank of India reported ain standalone net profit for the January–March quarter of FY26 (Q4FY26) to ₹19,683.75 crore. In the corresponding quarter of the previous financial year, the PSU bank’s profit stood at ₹18,643 crore.
However, sequentially, or on a quarter-on-quarter (QoQ) basis, profit declined 6.4% from ₹21,028.15 crore reported in Q3FY26.
Operating profit declined 11.45% YoY and 15.70% QoQ to ₹27,704 crore.
Net interest income (NII) increased just 4.13% YoY and declined 1.35% QoQ. The whole bank NIM for Q4FY26 stood at 2.81%, down 18 basis points QoQ, while domestic NIM declined to 2.93%.
Asset quality continued to improve, with the gross NPA ratio declining to 1.49% and net NPA remaining low at 0.39%.
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