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SBI's Q4 update leaves the Street unimpressed. Shares of State Bank of India (SBIN) were under pressure on Monday morning, down nearly 2% to ₹786 on BSE. The dip came after the lender reported a 10% drop in net profit for the March 2025 quarter.
It's not that the numbers were all bad—SBI announced its biggest dividend in over a decade and approved plans to raise ₹25,000 crore in equity. But investors seemed more concerned about what didn't click.
What dragged the stock?
SBI's net profit came in at ₹18,643 crore, down from ₹20,698 crore a year ago. That's a 10% fall, missing Street estimates.
Margins were also under pressure. Net interest margin (NIM)—a key profitability metric—slipped 32 basis points to 3.15% for the domestic business.
Yes, operating profit grew and asset quality improved, but it wasn't enough to offset the disappointment.
Here's a quick summary of the key numbers:
table
A solid dividend and a capital cushion
Despite the earnings dip, SBI declared a ₹15.90 per share dividend—the highest it has paid in 12 years. The record date is May 16, and the payout is due by May 30.
The bank also plans to raise ₹25,000 crore in equity capital in FY26 through a QIP or FPO. That's a sign SBI is gearing up for future growth and wants to shore up its capital base.
What brokerages are saying
Brokerages remain broadly positive on SBI.
Motilal Oswal retained a 'Buy' with a target of ₹915. Nuvama is even more bullish with a ₹950 target. They're betting on healthy loan growth, improving asset quality, and better return ratios.
But some analysts trimmed their FY26-27 earnings estimates, citing margin worries and provisioning risks.
Value Research Online Ratings
Value Research Stock Rating gives State Bank of India an overall rating of 5 stars out of 5. The bank's specific scores are as follows:
- Quality Score: 7/10
- Growth Score: 8/10
- Valuation Score: 7/10
- Momentum Score: 6/10<
Final take
SBI is a fortress — the kind of bank that can weather macro storms and still deliver meaty earnings. But even giants aren't immune to cycle turns.
Margins are clearly under pressure, and provisioning is back in the spotlight. That doesn't make SBI risky, but it does raise questions about how much headroom is left for upside, especially after a strong rally over the last two years.
- Want to compare SBI's metrics with other banks? Use our Stock Screener
- Get SBI's key ratios, past performance, and analyst views with our Stock Card
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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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