AU Small Finance Bank Limited

Financial Services — Banks - Regional · NSE

₹989.40−₹13.30 (−1.33%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of AU Small Finance Bank Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

AU Small Finance Bank Limited provides various banking and financial services in India. The company operates through Treasury, Retail Banking, Wholesale Banking, and Other Banking Operations segments.

IndustryBanks - Regional

SectorFinancial Services

Employees59,207

Annual revenue₹12,097 Cr

How does it make money?

Turns over ₹12,097 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit. Each of its 59,207 employees supports ₹20.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹20.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What is the outlook?

23 analysts covering the stock expect revenue to grow about 21.8% and earnings to grow about 25.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.8%

Est. earnings growth+25.8%

Analysts23

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +122% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+122%

Margin effect-17%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 26.1x already prices in growth
• P/E is close to its own historical median of 30.3x

Quality vs. Valuation

Company Quality

81/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.1x

3Y Median

30.3x

40 monthly readings · mean 30.5x · range 23.4x–37.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 30.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 54% above the peer median of 17.0x.

vs. its own history

Fair

30.3x median over 40 months · -14%

vs. sector peers

Expensive

17.0x median of 4 peers · +54%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

1.15

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 54% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 23% a year✓ 30.4% CAGR
Latest reported year was 29.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 11%✓ 13.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 30.3x✓ 26.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹74,147 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

26.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.70x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹37.87

Profitable

Profitable on a per-share basis

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

29.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.10%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,020 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

35.3%

Good

Healthy core-business profitability

Net Margin

25.6%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1008.5 / 1049.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,460 Cr	₹6,856 Cr	₹10,542 Cr	₹12,097 Cr	+30.4%
PAT (Net Profit)	₹1,428 Cr	₹1,535 Cr	₹2,106 Cr	₹2,641 Cr	+22.8%
EPS	₹21.74	₹22.86	₹28.24	₹35.01	+17.2%
ROE	13.0%	12.2%	12.3%	13.2%	—
Total Debt	₹6,299 Cr	₹5,479 Cr	₹11,660 Cr	₹13,872 Cr	+30.1%
Free Cash Flow	₹5,188 Cr	₹2,262 Cr	₹5,198 Cr	₹1,020 Cr	-41.8%

🟢 Revenue has grown at 30.4% a year over 3 years.

🟢 PAT (Net Profit) has grown at 22.8% a year over 3 years.

🟢 EPS has grown at 17.2% a year over 3 years.

🟡 ROE has held roughly flat at 13.2% over 3 years.

🔴 Total Debt has grown at 30.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 41.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.92 L Cr

Total Liabilities

₹1.72 L Cr

Cash & Equivalents

₹8,656 Cr

Operating Cash Flow

₹1,829 Cr

Capex

-₹809 Cr

Shareholding (proxy)

Institutional Holding

49.5%

Insider Holding

31.4%

Corporate Actions

Next Earnings

24 Oct 2026

Dividend Rate

₹1

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

17 Buy · 4 Hold · 7 Sell

Target Price (Mean)

₹1,126.1

+13.8% vs CMP

Target Range

₹820 – ₹1,285

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

3 mixed3 general

What AU Small Finance Bank Holders Bought Into

Yahoo Finance, 17 Oct

SBI, HDFC, ICICI To AU SFB: THESE 5 Bank Stocks Can Deliver Strong Returns In Long-Term | Check Target Price

Goodreturns, 13 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

AU Small Finance Bank Ltd. Share Price and Peer View at High

Univest, 21 Aug

AU Small Finance Bank to host Q2FY27 results call on October 24

scanx.trade, 12 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

AU Small Finance Bank Q1 GNPA At 2.10% And NNPA At 0.76% QoQ

Sahi, 25 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

If EPS Growth Is Important To You, AU Small Finance Bank (NSE:AUBANK) Presents An Opportunity

Simply Wall Street, 11 May

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 3 tripwires holding · see Key things to watch ↑