Shares of State Bank of India (SBI) rose 2.3% to their day’s high of Rs 822.85 on the BSE on Monday after the country’s largest lender reported a 12% year-on-year (YoY) rise in standalone net profit for the June quarter (Q1FY26), post which, brokerage firms raised the stock’s target price as high as Rs 955.
SBI’s profit for the quarter stood at Rs 19,160 crore, up from Rs 17,035 crore in the corresponding period last year, surpassing Street estimates of Rs 17,095 crore. The bank’s interest income rose 6% to Rs 1,17,996 crore during the quarter, compared with Rs 1,11,526 crore in the year-ago period.
On the expenditure side, interest costs increased 9% to Rs 76,923 crore from Rs 70,401 crore in the same quarter last year.
Post the bank’s Q1 results, here’s what analysts across various brokerage firms said:
Motilal Oswal: Buy| Target price: Rs 925
Motilal Oswal maintained a ‘buy’ rating on the stock with a target price of Rs 925.
State Bank of India (SBI) reported Q1FY26 PAT of Rs 19,160 crore, a 13% beat, driven by strong treasury gains and controlled opex. NII fell 4% QoQ to Rs 41,070 crore, with NIM down 10 bps QoQ to 2.9%. Opex dropped 22% QoQ to Rs 27,278 crore, mainly on lower employee and other expenses.
Loan book grew 12% YoY, deposits rose 11.7% YoY, and CASA ratio declined 61 bps QoQ to 39.4%. Slippages were Rs 8,393 crore (0.75% ratio), GNPA rose 1 bp QoQ to 1.83%, and NNPA remained at 0.47%, with PCR at 74.5%.
JM Financial: Buy| Target price: Rs 950
JM Financial maintained a ‘buy’ rating on the stock with a target price of Rs 950.
SBI posted Q1FY26 PAT growth of 12% YoY and 3% QoQ, about 15% above estimates, with RoA/RoE at ~1.1%/17%. Loan growth was stable at 12% YoY, supported by home and international segments. NII fell 4% QoQ due to a 16 bps drop in NIM to 2.65%, but higher core fee income
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