AU Small Finance Bank shares dive 7% post Q1 FY26 results; here's why
AU Small Finance: The bank posted a net profit of Rs 580.9 crore for Q1 FY26, up 15.6 per cent year-on-year (YoY) from Rs 503 crore in the same period last year. Net interest income (NII) also rose 6.5 per cent YoY to Rs 2,044.6 crore.
- Jul 21, 2025,
- Updated Jul 21, 2025 10:13 AM IST
Shares of AU Small Finance Bank Ltd slumped 7.32 per cent in Monday's trade to hit a day low of Rs 736.40. The decline comes amid a deterioration in asset quality for the private lender during the quarter ended June 2025 (Q1 FY26).
On a sequential basis, asset quality weakened, with gross non-performing assets (GNPA) rising to Rs 2,751.3 crore from Rs 2,477 crore in the previous quarter. Consequently, the GNPA ratio increased to 2.47 per cent from 2.28 per cent. Net NPAs also climbed to Rs 971.3 crore from Rs 791.3 crore quarter-on-quarter (QoQ), pushing the net NPA ratio up to 0.88 per cent from 0.74 per cent.
Despite the pressure on asset quality, the bank posted a net profit of Rs 580.9 crore for Q1 FY26, up 15.6 per cent year-on-year (YoY) from Rs 503 crore in the same period last year. Net interest income (NII) also rose 6.5 per cent YoY to Rs 2,044.6 crore.
On the technical setup, support on the counter could be seen in the Rs 715-700 range.
According to Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, "The next potential support is in the proximity of Rs 700, which is likely to cushion the ongoing correction. On the flip side, the bearish gap of Rs 770-790 is likely to act as an intermediate hurdle in the near period."
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, said support lies at Rs 715 and resistance at Rs 770. A sustained move above Rs 770 could push the stock towards Rs 780, with the near-term trading range seen between Rs 715 and Rs 780.
As of March 2025, promoters held a 22.87 per cent stake in the lender.
Shares of AU Small Finance Bank Ltd slumped 7.32 per cent in Monday's trade to hit a day low of Rs 736.40. The decline comes amid a deterioration in asset quality for the private lender during the quarter ended June 2025 (Q1 FY26).
On a sequential basis, asset quality weakened, with gross non-performing assets (GNPA) rising to Rs 2,751.3 crore from Rs 2,477 crore in the previous quarter. Consequently, the GNPA ratio increased to 2.47 per cent from 2.28 per cent. Net NPAs also climbed to Rs 971.3 crore from Rs 791.3 crore quarter-on-quarter (QoQ), pushing the net NPA ratio up to 0.88 per cent from 0.74 per cent.
Despite the pressure on asset quality, the bank posted a net profit of Rs 580.9 crore for Q1 FY26, up 15.6 per cent year-on-year (YoY) from Rs 503 crore in the same period last year. Net interest income (NII) also rose 6.5 per cent YoY to Rs 2,044.6 crore.
On the technical setup, support on the counter could be seen in the Rs 715-700 range.
According to Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, "The next potential support is in the proximity of Rs 700, which is likely to cushion the ongoing correction. On the flip side, the bearish gap of Rs 770-790 is likely to act as an intermediate hurdle in the near period."
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, said support lies at Rs 715 and resistance at Rs 770. A sustained move above Rs 770 could push the stock towards Rs 780, with the near-term trading range seen between Rs 715 and Rs 780.
As of March 2025, promoters held a 22.87 per cent stake in the lender.