Equitas Small Finance Bank, incorporated in 2016 after transitioning from a microfinance NBFC, is a Chennai-based small finance bank focused on financial inclusion through retail lending, microfinance, vehicle finance, and housing loans. With over 960 branches across 18 states—primarily in Tamil Nadu, Maharashtra, and Karnataka—the bank has built a strong grassroots presence. However, recent financial performance has been challenging, with negative earnings and rising operational costs. As of January 2026, Equitas SFB is in a recovery phase, requiring close monitoring of asset quality and cost rationalization. This article provides a data-driven outlook on the Equitas Small Finance Bank share price target 2026–2030.
Equitas Small Finance Bank: Company Overview
- Founded: 2016 (as a bank; operations since 2007 as MFI)
- Managing Director: Mr. Vasudevan P. Narasimhan
- NSE Symbol: EQUITASBNK
- Business Segments: Microfinance, Retail Lending, Vehicle Finance, Housing Loans, SME Banking
- Market Position: Among India’s top 5 small finance banks by branch network and deposit base
Equitas SFB maintains a healthy capital adequacy ratio (CAR) of 20.6%, well above RBI’s 15% requirement for SFBs. However, its profitability has been under pressure due to high credit costs and elevated operating expenses.
Equitas Small Finance Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹70.00 |
| Market Capitalization | ₹7,981.87 Cr |
| No. of Shares Outstanding | 114.09 Cr |
| 52-Week High / Low | ₹75.50 / ₹50.00 |
| P/E Ratio (TTM) | Not applicable (negative EPS) |
| P/B Ratio | 1.36 |
| EPS (TTM) | –₹0.80 |
| Book Value (TTM) | ₹51.35 |
| ROE | 2.46% |
| ROCE | 4.62% |
| Dividend Yield | 0.00% |
| Face Value | ₹10 |
| Net Interest Income | ₹3,251.61 Cr |
| Cost-to-Income Ratio | 67.95% |
| Capital Adequacy Ratio (CAR) | 20.6% |
| Profit Growth (YoY) | –81.59% |
| CASA % | 28.79% |
Equitas Small Finance Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹72 – ₹82 |
| 2027 | ₹76 – ₹88 |
| 2028 | ₹80 – ₹95 |
| 2029 | ₹84 – ₹104 |
| 2030 | ₹88 – ₹112 |
Equitas Small Finance Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹72 | ₹82 |
Equitas reported an 81.59% YoY decline in profit in FY2025, with negative EPS of –₹0.80 due to high provisioning and margin pressure. Despite this, the stock trades at a P/B of 1.36x, reflecting investor hope for a turnaround. A healthy CAR (20.6%) and stable CASA (28.79%) support operational resilience. A 2026 target range of ₹72–₹82 assumes no further slippages and gradual stabilization in credit costs.
Equitas Small Finance Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹76 | ₹88 |
If the bank improves its cost-to-income ratio (currently 67.95%) and reduces NPAs, earnings could return to positive territory by FY27. Assuming EPS turns modestly positive (~₹1.20–₹1.50) and P/B stabilizes at 1.4–1.5x, the 2027 target range of ₹76–₹88 is reasonable.
Equitas Small Finance Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹80 | ₹95 |
By 2028, benefits from digital scaling, branch rationalization, and improved underwriting should reflect in margins. With book value expected to grow to ₹55–₹57, a P/B of 1.45–1.6x supports the ₹80–₹95 band—contingent on consistent profitability.
Equitas Small Finance Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹84 | ₹104 |
Long-term tailwinds include India’s financial inclusion push and Equitas’ strong rural franchise. If ROE improves to 5–6% and dividends resume, investor sentiment could improve. Using a P/B of 1.5–1.7x on projected book value (~₹60–₹62), the 2029 target is ₹84–₹104.
Equitas Small Finance Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹88 | ₹112 |
Over a five-year horizon, Equitas’ recovery hinges on execution consistency. If it regains investor trust through clean earnings and capital discipline, a P/B of 1.6–1.8x on FY30 book value (~₹62–₹65) justifies the ₹88–₹112 range. Upside remains limited by structural inefficiencies; downside is mitigated by current valuation and regulatory backing.
Equitas Small Finance Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Domestic Institutional Investors (DII) | 48.20% |
| Public & Retail | 36.13% |
| Foreign Institutional Investors (FII) | 15.67% |
| Promoters | 0% |
The absence of promoters reflects its widely held structure. High institutional ownership (63.87%) ensures liquidity and analyst coverage.
Equitas Small Finance Bank: Strengths vs Risks
Strengths:
- Strong capital buffer (CAR: 20.6%) well above regulatory minimums
- Deep rural penetration in high-growth states (Tamil Nadu, Maharashtra)
- No promoter holding—reduces governance concerns
- Growing deposit base and improving CASA mix
Risks:
- Negative EPS and weak ROE (2.46%)
- Very high cost-to-income ratio (67.95%) limits margin expansion
- No dividend payout since FY2024
- Contingent liabilities of ₹10,598 Cr require monitoring
Investment Suitability
| Factor | Assessment |
|---|---|
| Aggressive investors betting on a turnaround; not suitable for conservative portfolios | High |
| Ideal Time Horizon | 5+ years (only for recovery bet) |
| Volatility | High (stock down ~5% in 1 year despite market rally) |
| Dividend/Income Potential | None (0% yield) |
| Best For | Aggressive investors betting on turnaround; not suitable for conservative portfolios |
FAQs
Is Equitas Bank undervalued or overvalued?
It is fairly valued on book (P/B: 1.36x) but overvalued on earnings (negative EPS). The valuation assumes a successful turnaround—making it speculative, not cheap.
What is the target price for Equitas Bank?
Based on fundamentals, the Equitas Bank share price target for 2026 is ₹72–₹82. The 2026–2030 cumulative range is ₹72 to ₹112.
What is the future of Equitas Bank?
The bank’s future depends on reducing operating costs, improving asset quality, and returning to consistent profitability. If executed well, it can become a credible mid-tier SFB. Failure could lead to prolonged stagnation.
Why is Equitas Bank falling?
Shares are under pressure due to:
Negative earnings and 81% profit decline
High cost-to-income ratio (68%)
No dividend payouts
Broader rotation toward profitable PSU/private banks
Which is the No. 1 small finance bank?
As of 2026, AU Small Finance Bank is widely regarded as the No. 1 SFB by market cap, profitability (ROE: 14.2%), and investor confidence—followed by Ujjivan, ESAF, and Equitas.
Final Verdict
Equitas Small Finance Bank has a strong rural franchise and solid capital buffers but faces significant headwinds from operational inefficiency and weak profitability. It remains a high-risk, high-potential recovery play, not a core holding.
Our Equitas Small Finance Bank share price target 2026–2030 (₹72 to ₹112) reflects cautious optimism—rooted in balance sheet strength but tempered by earnings uncertainty. Investors should monitor quarterly asset quality, cost ratios, and provisioning trends before increasing exposure.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Equitas SFB Consolidated Page (FY2025 + TTM)
- Finology Ticker – EQUITASBNK Financials & Analysis
- Groww.in – Equitas Small Finance Bank Stock Profile
- Equitas SFB Investor Presentation (Q2 FY26, Nov 2025)
- RBI Guidelines on Small Finance Banks and Capital Adequacy
