SBI Q4 FY26 profit rises 5.6% to ₹19,684 crore; FY26 earnings top ₹80,000 crore
Synopsis
SBI's FY26 full-year profit crossing ₹80,000 crore is a historic milestone for Indian public sector banking — but the quarterly story is more nuanced. Sequential margin compression, a sharp drop in operating profit, and a 5.7% stock slide on results day suggest investors are looking past the headline and asking harder questions about NIM sustainability heading into FY27.
Key Takeaways
SBI reported a standalone Q4 FY26 net profit of ₹19,683.75 crore , up 5.6% YoY .
Consolidated Q4 net profit rose a modest 1.1% YoY to ₹20,161.30 crore .
Full-year FY26 profit hit ₹80,032.01 crore , up nearly 13% from ₹70,900.63 crore in FY25.
Operating profit fell 11.45% YoY and 15.7% QoQ to ₹27,704 crore ; domestic NIM slipped to 2.93% .
Gross NPA ratio improved to 1.49% from 1.82% a year ago; net NPA ratio at 0.39% .
SBI shares fell 5.70% to ₹1,029.80 during the session following the results.
State Bank of India (SBI) on Friday, 8 May 2025, reported a standalone net profit of ₹19,683.75 crore for the fourth quarter of FY26 (January–March 2025), a 5.6% year-on-year rise from ₹18,642.59 crore in the same period last year. On a consolidated basis, net profit grew a more modest 1.1% YoY to ₹20,161.30 crore, aided by steady growth in advances and deposits.
Full-Year Earnings Cross ₹80,000 Crore
For the full financial year FY26, SBI posted a consolidated profit of ₹80,032.01 crore, up nearly 13% from ₹70,900.63 crore in FY25 — a milestone that cements India's largest lender's position as one of the most profitable public sector banks in the country's history. The full-year print marks a significant acceleration from the previous year's trajectory.
Sequential Dip and Margin Pressure
Despite the annual gains, the quarter-on-quarter picture was softer. Standalone net profit declined 6.4% sequentially from ₹21,028.15 crore in the December quarter (Q3 FY26). Operating profit fell more sharply — down 11.45% YoY and 15.7% QoQ — to ₹27,704 crore, reflecting rising cost pressures and a tighter interest rate environment.
Net Interest Income (NII) rose 4.13% year-on-year to ₹44,380 crore but slipped 1.35% sequentially. Notably, SBI's domestic Net Interest Margin (NIM) moderated to 2.93%, declining 21 basis points YoY and 18 basis points from the previous quarter — a signal that the bank is navigating a tighter spread environment as deposit repricing catches up with loan yields.
Asset Quality Continues to Improve
One of the quarter's clearest positives was asset quality. Gross Non-Performing Assets (NPAs) fell 4.46% YoY to ₹73,452 crore, pulling the gross NPA ratio down to 1.49% from 1.82% a year earlier. The net NPA ratio also improved to 0.39% from 0.47% in the year-ago quarter, despite a marginal sequential uptick in absolute net NPA figures. This marks a sustained multi-quarter trend of cleaner books — a sharp contrast to the NPA crisis that plagued Indian public sector banks through much of the previous decade.
Market Reaction
Investors appeared cautious following the results. SBI shares were trading at ₹1,029.80, down ₹62.20 or 5.70% during the session, suggesting the market had priced in stronger operating metrics or was reacting to the sequential compression in margins and operating profit. This comes amid a broader recalibration in banking stocks as the Reserve Bank of India (RBI) navigates its rate easing cycle.
What to Watch
With NIM under pressure and operating profit declining sequentially, the key question for SBI heading into FY27 is whether loan growth can offset margin compression. Analysts will also watch credit cost trends and the trajectory of deposit mobilisation as competition for retail funds intensifies across the banking sector.
Point of View
000 crore full-year milestone will dominate the headlines, but the quarter itself tells a more cautious story. Operating profit contracting 11% YoY while NIM slides 21 basis points suggests SBI is feeling the structural squeeze that comes when deposit costs rise faster than lending rates can adjust. The NPA improvement is real and meaningful — but it can only carry the narrative so far. The 5.7% stock fall on results day is the market's verdict: headline profit is fine, but the quality of earnings is under scrutiny. If NIM stays compressed into FY27, the gap between SBI's profit optics and its operating momentum will become harder to ignore.
NationPress
28 Jun 2026
Frequently Asked Questions
What was SBI's net profit in Q4 FY26?
SBI reported a standalone net profit of ₹19,683.75 crore in Q4 FY26 (January–March 2025), up 5.6% year-on-year. On a consolidated basis, net profit rose 1.1% YoY to ₹20,161.30 crore.
How much profit did SBI make in FY26?
SBI's full-year FY26 consolidated profit was ₹80,032.01 crore, a nearly 13% increase from ₹70,900.63 crore in FY25. This is a historic milestone for India's largest public sector lender.
Why did SBI's operating profit fall in Q4 FY26?
SBI's operating profit declined 11.45% YoY and 15.7% QoQ to ₹27,704 crore in Q4 FY26, reflecting margin pressure as domestic NIM moderated to 2.93% — down 21 basis points year-on-year — amid a tighter spread environment.
How did SBI's asset quality change in Q4 FY26?
Asset quality improved: the gross NPA ratio fell to 1.49% from 1.82% a year earlier, and the net NPA ratio improved to 0.39% from 0.47%. Gross NPAs in absolute terms declined 4.46% YoY to ₹73,452 crore.
Why did SBI shares fall after Q4 results?
SBI shares fell 5.70% to ₹1,029.80 during the session following the results, reportedly as investors reacted to the sequential decline in operating profit and NIM compression, despite the headline profit growth.
