DCB Bank Q3 FY26: Strong Earnings, Margin Growth & Attractive Valuation Drive Re-rating
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Moneycontrol•28-01-2026, 10:49
DCB Bank Q3 FY26: Strong Earnings, Margin Growth & Attractive Valuation Drive Re-rating
- •DCB Bank reported its highest-ever quarterly profit of Rs 185 crore in Q3 FY26, a 23% YoY increase, despite a one-off expense.
- •The bank expects margin expansion to continue until Q2 FY27, driven by lower funding costs and a more profitable product mix.
- •Asset quality improved significantly, with slippages falling to an 18-quarter low and credit costs remaining contained.
- •DCB Bank aims for 18-22% annual loan growth, targeting to double its balance sheet in 3-3.5 years, with robust fee income growth.
- •Despite a sharp rally, the stock trades at an attractive 0.9x estimated FY27 book value, indicating potential for further re-rating.
Why It Matters: DCB Bank's strong Q3 FY26 performance, positive outlook, and attractive valuation suggest continued re-rating potential.
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