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AU Small Finance Bank shares rallied on Monday following a stronger-than-expected Q2FY26 performance and positive brokerage revisions.

At 10:11 AM, the stock was trading at Rs 841.90, up Rs 49.45 or 6.24 per cent. The stock opened at Rs 818, hit a high of Rs 857.20, and touched a low of Rs 818. The bank’s market capitalization currently stood at Rs 62,710 crore. Its 52-week high is Rs 857.20 and 52-week low is Rs 478.35.

The stock has gained 11 per cent in the last five trading sessions and surged 20 per cent over the past one month. In the last six months, the banking stock is up 36 per cent, while in this year alone, the stock has zoomed 50 per cent.

AU Small Finance Bank reported net interest income (NII) of Rs 2,144 crore, up 8 per cent year-on-year from Rs 1,974 crore, exceeding Zee Business estimates of Rs 2,020 crore. Profit after tax (PAT) came in at Rs 561 crore, down 2 per cent from Rs 571 crore in the same quarter last year but above estimates of Rs 490 crore.

Net total income rose 9 per cent to Rs 2,857 crore, while operating expenses increased 11 per cent year-on-year to Rs 1,647 crore. Provisioning during the quarter rose 29 per cent to Rs 481 crore, the filing added.

Gross non-performing assets (GNPA) improved to 2.4 per cent from 2.5 per cent quarter-on-quarter, while net NPA remained flat at 0.9 per cent. Total deposits stood at over Rs 1.32 lakh crore, marking a 21 per cent year-on-year growth.

Brokerages responded positively to the Q2 performance:

- Citi upgraded the stock from Neutral to Buy and raised the target price to Rs 990 from Rs 850.

- Nomura upgraded to Neutral from Reduce and increased the target price to Rs 750 from Rs 610.

- Jefferies maintained Buy and raised the target to Rs 940 from Rs 910.

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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