Suryoday Small Finance Bank Ltd (SURYODAY)

Financial Services · Banks · NSE · Updated 12 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹147.2 ↑ 15.91% (1Y)

🎯 Key Takeaways

  • Suryoday Small Finance Bank is in a high-growth phase, marked by aggressive expansion in advances and deposits, improving asset quality, and strong profitability gains. Management is focused on scaling the Vikas Loan portfolio, expanding secured lending, and strengthening retail deposits to sustain growth while maintaining profitability and asset quality.
  • Revenue grew 3.5% QoQ to ₹622 in Q1FY27.
  • ⚠️ Rising gross advances (32.5% YoY) without commensurate capital adequacy improvements may pressure regulatory buffers.
Market Cap
₹1,565
P/E Ratio
8.2
P/B Ratio
0.75
ROE
9.2%
ROCE
26.4%
Debt/Equity
1.50
Div Yield
1.02%
Promoter
22.5%

📖 The Story

Suryoday Small Finance Bank is in a high-growth phase, marked by aggressive expansion in advances and deposits, improving asset quality, and strong profitability gains. Management is focused on scaling the Vikas Loan portfolio, expanding secured lending, and strengthening retail deposits to sustain growth while maintaining profitability and asset quality.

📰 What's Happening

In Q1 FY27 (filed July 23, 2026), the bank reported a 113.1% YoY surge in PAT to ₹75.2 crores, driven by 32.5% growth in gross advances to ₹14,376 crores and 29.4% deposit growth to ₹14,634 crores. Asset quality improved with GNPA ratio declining to 6.5% from 8.5% and NNPA to 1.2% from 5.6%. The bank also expanded its equity base via ESOP allotment of 6,825 shares on August 13, 2026, increasing paid-up capital and total shares. Management emphasized accelerating digital capabilities, retail deposit growth, and sustainable expansion without compromising profitability.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricSep 2025Dec 2025Mar 2026Jun 2026
Revenue520544602622
Operating Profit7989107139
OPM %13.2%14.3%15.5%18.0%
Net Profit30375075
EPS₹2.86₹3.44₹4.68₹7.07

The bank’s financial trajectory shows consistent top-line and bottom-line growth, with revenue rising from ₹520 crores (Sep 2025) to ₹622 crores (Jun 2026) and net profit climbing from ₹30 crores to ₹75 crores over the same period. Operating margins improved from 13.2% to 18.0%, reflecting better cost efficiency and asset deployment. This growth aligns with management’s focus on expanding advances and deposits, supported by declining cost of funds and improved collection efficiency, indicating effective execution of their growth strategy.

🔮 Management Outlook & What's Next

In the Q1 FY27 filing (July 23, 2026), management did not provide explicit forward guidance but reiterated strategic priorities: building the Vikas Loan portfolio, expanding secured lending, strengthening retail deposits, accelerating digital capabilities, and delivering sustainable growth with profitability and asset quality. No new financial targets or timelines were disclosed, but the emphasis on operational efficiency and asset quality improvement suggests continued focus on scalable, prudent growth.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2026Mar 2026Mar 2026
Equity Capital106106106106
Reserves1,8211,8441,8851,972
Borrowings2,7102,2852,1653,122
Total Liabilities15,61416,05916,60419,884
Fixed Assets290286290293
Investments3,1373,3243,4143,693
Total Assets15,61416,05916,60419,884

The balance sheet shows a steady increase in total assets from ₹16,059 crores (Mar 2026) to ₹19,884 crores (Mar 2026), indicating active asset growth. Equity remains stable at ₹106 crores, while reserves grew to ₹1,972 crores, suggesting retained earnings are being capitalized. Borrowings rose to ₹3,122 crores from ₹2,285 crores, reflecting increased funding for expansion. This pattern signals a capital-light growth model funded partly by debt, with asset base expanding faster than liabilities, though leverage remains elevated at D/E of 1.50.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2026
Operating+652
Investing-792
Financing+412
Net Cash Flow+273

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters22.4%22.4%22.5%22.5%
FII4.7%5.0%5.2%5.3%
DII6.6%6.1%5.7%5.5%
Public40.1%39.7%39.7%39.7%
# Shareholders1,02,09899,13895,02689,688

Institutional investor interest is rising, with FII holding increasing from 4.66% (Q2FY26) to 5.35% (Q1FY27), and DII from 6.11% to 5.47% despite a slight dip in recent quarters. Promoter holding remains stable at 22.48%. The growing number of public shareholders (down from 1,02,098 to 89,688) suggests consolidation, but retail participation remains robust. No promoter pledging or significant dilution is evident, and the ESOP issuance reflects long-term incentive alignment without diluting control.

⚖️ Peer Comparison — Banks

Company MCap (₹ Cr) P/E ROCE ROE D/E
HDFCBANK 10.90 L Cr 13.8 25.0% 14.1% 1.00
ICICIBANK 9.89 L Cr 17.6 28.8% 16.4% 0.61
SBIN 9.20 L Cr 10.7 31.8% 14.8% 1.30
KOTAKBANK 4.16 L Cr 7.2 20.7% 11.2% 0.53
AXISBANK 3.88 L Cr 13.9 22.3% 13.1% 1.31
UNIONBANK 1.36 L Cr 6.6 44.9% 15.0% 0.58
PNB 1.34 L Cr 6.1 45.1% 13.7% 0.72
BANKBARODA 1.23 L Cr 6.8 31.2% 10.7% 1.03
INDIANB 1.15 L Cr 9.0 45.8% 15.7% 0.58
CANBK 1.12 L Cr 5.7 42.1% 16.1% 1.32

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Rising gross advances (32.5% YoY) without commensurate capital adequacy improvements may pressure regulatory buffers. 2. Despite improved GNPA, the absolute level (6.5%) remains elevated for a small finance bank, indicating underlying credit risk in the portfolio. 3. Cost of funds remains relatively high at 7.5%, which could compress margins if deposit growth slows. 4. Asset quality trends are mixed — while NNPA improved, the pace of GNPA reduction may not be sufficient to prevent future slippages in a challenging macro environment.

📋 Recent Filings

🧠 Analyst's Read

Suryoday Small Finance Bank is executing a high-growth strategy with improving profitability and asset quality, supported by strong deposit mobilization and advance growth. Investors should monitor credit quality trends, cost of funds trajectory, and pace of retail deposit expansion to assess sustainability. The ESOP-driven capital increase and rising institutional interest are positive, but leverage and macro sensitivity remain key watchpoints.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-12.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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