SBI Q1FY27 results beat market estimates. Is this a stock to buy?

The State Bank of India (SBI) declared its Q1 results 2026 on Friday. In its first-quarter results for the financial year 2026-27, the PSU bank recorded a standalone net profit of ₹21,121 crore. Beating the market estimates, SBI reported Q1FY27 PAT of ₹21,120 crore, up by 7.3% QoQ and 10.2% YoY. After the announcement of the first-quarter results for FY27, SBI shares saw strong buying, hitting a new intraday high of ₹1,124.50 on the NSE. However, the state-owned banking stock soon retraced and finally closed at ₹1,097 apiece, up over 1% from the previous close.

SBI Q1 results 2026 review

Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes SBI delivered a strong operational performance in Q1 FY27, recording a standalone net profit of ₹21,121 crore, representing 10.23% year-on-year and 7.30% quarter-on-quarter growth. This earnings growth was propelled by a 14.88% year-on-year surge in Net Interest Income (NII) to ₹46,992 crore and a 9.77% year-on-year increase in operating profit to ₹33,529 crore.

“Profitability was further bolstered by sequential margin expansion, as the Whole Bank Net Interest Margin (NIM) rose by 5 basis points quarter-on-quarter to 2.86% and Domestic NIM expanded by 7 basis points quarter-on-quarter to 3.00%. Overall, the bank maintained robust profitability metrics, achieving a Return on Assets (ROA) of 1.11% and a Return on Equity (ROE) of 17.87%,” the SMC expert added.

SBI results beyond market expectations

Siddharth Rajpurohit, Lead Analyst — Banking and Non-Lending Financials at Systematix, said that SBI reported Q1FY27 PAT of ₹21102 crore (8.4% above Bloomberg consensus), up by 7.3% QoQ and 10.2% YoY. The sequential growth in PAT was mainly driven by healthy operating performance, despite a moderation in other income. Net advances grew 18% YoY, led by growth across SME, Corporate and agri segments. The management has guided an advanced growth of 14-15% for FY27.

“Aided by the lower cost of deposits, the domestic NIM improved 7bps QoQ to 3.0%, with management reiterating FY27 NIM guidance of approximately 3.0%. The bank has repriced its T-bill rate and is working towards increasing the share of MCLR loans. SBI mobilised approximately US$6bn of FCNR(B) deposits along with US$1.3bn of overseas borrowings, taking total overseas funding to USD 7.3bn, with expected FCNR(B) mobilisation of around USD 10bn during the scheme period,” said Siddharth Rajpurohit of Systematix.

The annualised gross slippage ratio has increased by 13 bps QoQ but decreased -20 bps YoY to 0.6%. Gross slippages of ₹70.5bn are primarily driven by Agriculture, SME and Personal Banking, while approximately Rs. 14-15bn has already been recovered or upgraded post-quarter-end. The credit costs stood at 0.41%, up 17 bps QoQ but down -5 bps YoY.

Seema Srivastava of SMC Global said that the bank's balance sheet expansion was anchored by an 18.63% year-on-year increase in Whole Bank Advances to ₹50.47 lakh crore, led by an 18.15% growth in domestic advances, an 18.05% expansion in corporate advances, and a 21.38% surge in foreign office advances in rupee terms. Retail momentum remained robust, with the RAM (Retail, Agriculture, SME) portfolio growing 18.20% year-on-year, driven by impressive growth across Agriculture at 25.43%, SME at 22.33%, and Retail Personal advances at 15.15%. On the liability side, total deposits grew 9.73% year-on-year to ₹60.06 lakh crore, backed by a 9.30% rise in CASA deposits, bringing the CASA ratio to 39.24% as of June 30, 2026, while Retail Term Deposits posted a healthy 14.39% year-on-year growth.

“Provision coverage remained strong with a PCR of 74.20% and a PCR including AUCA at 91.82%, providing a robust buffer against stress. Furthermore, capital adequacy ratios remained comfortable, with CRAR at 15.67%, Tier-I at 13.90%, and CET-1 at 12.89%, ensuring adequate capacity to support future credit expansion,” Seema Srivastava of SMC Global said.

Should you buy SBI shares after Q1 FY27 results?

Advising investors to buy SBI shares, Siddharth Rajpurohit of Systematix said, “We have revised our target price to Rs. 1300 ( ₹1250 earlier) and maintain our BUY rating on SBIN. We are valuing the standalone bank at 1.5x on its FY28E adjusted book value per share of ₹678.”

According to Hitesh Rathi, Technical Analyst – Equity & Derivatives at Angel One, SBI's technical structure remains largely range-bound, indicating continued uncertainty in the stock's near-term direction. He noted that a bearish 100% pole in the ₹1,200 to ₹1,220 zone points to strong overhead supply, while a bullish 100% pole in the ₹940 to ₹950 range highlights robust buying interest at lower levels. As a result, the stock continues to trade within this broad range.

Rathi said the ₹1,115 to ₹1,135 zone is the immediate resistance area to watch. A decisive breakout above this range would mark an exit from the ongoing consolidation and confirm a breakout above the 45-degree objective trendline, signalling the potential start of a sustained uptrend. Until such a move occurs, he expects SBI to remain in a sideways trading phase, with the resistance zone holding the key to its next directional move.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.