2% increase in SBI shares above Q1 earnings. Do you want to purchase?

After reporting a standalone net profit of Rs 19,160 crore for the June quarter (Q1FY26), up from Rs 17,035 crore in the same period the previous year, sbi’s share price increased.

Following the release of the lender’s impressive first-quarter profits, shares of State Bank of India (SBI) increased by almost 2% in early trading on Monday. SBI shares rose to a high of Rs 822.85 in morning trades after opening at Rs 807, which was higher than the previous close of Rs 804.55.

SBI’s June quarter (Q1FY26) standalone net profit of Rs 19,160 crore, up from Rs 17,035 crore in the same period the previous year, was the reason for the increase. The amount was far higher than the Rs 17,095 crore that the market had anticipated.

Interest income increased from Rs 1,11,526 crore to Rs 1,17,996 crore, a 6% increase from the previous year. The outcomes were well received by brokerage companies.

According to Motilal Oswal Financial Services (MOFSL), robust treasury gains and well-managed operating expenses helped the earnings surpass its projections by 13%. The net interest margin (NIM) decreased by 10 basis points from quarter to quarter and 32 basis points from year to year to 2.9%, while net interest income (NII) decreased 4% sequentially. Nonetheless, the bank anticipates that domestic NIMs would rebound from the third quarter of the year and remain above 3% in FY26.

Despite seasonal slippages in Q1, SBI maintained stable performance, according to MOFSL, with credit growth of 12% annually. Although the unsecured Xpress Credit book stayed unchanged, growth in the upcoming quarters is anticipated to be supported by a robust credit pipeline. The domestic credit-deposit ratio remains comfortable, supporting incremental lending. It has reiterated a buy call with a target price of Rs 925 and increased its earnings expectations by 3% for FY26 and 3.5% for FY27.

Other brokerages echoed similar optimism. Nuvama maintained a buy rating with a target price of Rs 950, while JM Financial also kept its buy call with the same target price. Key positives for the forecast, according to analysts, were the bank’s recent capital increase, improved liquidity prospects, and a decrease in deposit costs.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. Before actually making any trading or investment decisions, it is advised to speak with a licensed broker or financial advisor.)