DCB Bank Limited (DCBBANK) AI Stock Analysis

• Market Cap: ₹64.22B
• Dividend Yield: 0.76%
• Average Volume (3M): 45.48K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.19
• Revenue Growth: 21.44%
• EPS Growth: 17.14%
• Country: IN
• Employees: 11,268
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 5.80
• Shares Outstanding: 321,744,900
• 10 Day Avg. Volume: 27,043
• 30 Day Avg. Volume: 45,476
• PEG Ratio: 0.41
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -0.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹220.00
• Price Target Upside: 22.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹218.00 ▲(21.18% Upside)

The score is primarily weighed down by weaker financial quality—especially negative operating/free cash flows and high leverage—despite solid revenue trends. Offsetting this, technicals are strong with a clear uptrend and positive momentum, and valuation is attractive due to the low P/E, while the dividend yield is only modest.

Positive Factors

Revenue Growth

Sustained top-line growth, as noted with the latest-year increase, supports the bank’s net interest income expansion and fee income scale. Over 2–6 months this underpins lending capacity and branching/retail growth, providing a durable base for earnings and strategic reinvestment.

Strong Gross Margin

A near 40% gross profit margin signals efficient cost management and pricing power on core activities. This structural margin strength provides a lasting buffer to absorb credit costs or investments in technology, helping sustain profitability through business cycles.

Diversified Income Sources

Revenue mix including interest income, fees, treasury operations and fintech partnerships reduces dependence on any single source. Structural diversification improves resilience to segment-specific shocks and supports strategic distribution and product expansion over the medium term.

Negative Factors

High Leverage

A leverage ratio near 3x increases balance-sheet sensitivity to credit losses and rate shocks, constraining capital flexibility. Over months this raises refinancing and capital-raising risk, limiting the bank’s ability to expand lending or absorb unexpected asset-quality deterioration.

Negative Cash Flows

Persistently negative operating and free cash flows indicate the bank is not generating sufficient cash from core operations to fund growth or capital needs. This structural liquidity weakness increases reliance on external funding and pressures margins and dividend capacity over the medium term.

Low Net Profit Margin

An 8.5% net margin leaves limited room to absorb higher credit costs or expense inflation. Structurally modest net profitability slows internal capital accumulation, reducing the bank’s ability to de-risk the balance sheet or invest in strategic initiatives without tapping external capital.

DCB Bank Limited Business Overview & Revenue Model

Company Description

DCB Bank Limited provides various banking and financial products and services in India. It operates through Treasury Operations, Wholesale Banking, Retail Banking, and Other Banking Operations segments. The Treasury Operations segment engages in various financial markets activities undertaken on behalf of the company's customers, proprietary trading, maintenance of reserve requirements, and resource mobilization from other banks and financial institutions. The Wholesale Banking segment's activities include lending, deposit taking, and other services offered to corporate customers. The Retail Banking segment's activities comprise lending, deposit taking, and other services offered to retail customers. The Other Banking Operations segment provides para banking services, such as third-party product distribution, merchant banking, etc. As of May 07, 2022, it operated through a network of 400 branches in India. The company was formerly known as Development Credit Bank Limited and changed its name to DCB Bank Limited in October 2013. DCB Bank Limited was incorporated in 1995 and is based in Mumbai, India.

How the Company Makes Money

DCB Bank generates revenue primarily through interest income from loans and advances, which constitutes a significant portion of its earnings. The bank lends money to individuals and businesses at higher interest rates compared to the interest it pays on deposits, creating a net interest margin. Additionally, DCB Bank earns fees and commissions from various services including account maintenance, transaction services, and wealth management. The bank also generates income through its treasury operations, which involve managing investments in government securities and other financial instruments. Strategic partnerships and collaborations with fintech companies further enhance its service offerings and customer reach, contributing to its overall revenue.

DCB Bank Limited Financial Statement Overview

Summary

Income statement strength (score 75) is supported by steady revenue growth and a strong gross margin, but overall financial performance is held back by high leverage on the balance sheet (score 65; debt-to-equity 2.87) and weak cash-flow quality (cash flow score 40 with negative operating and free cash flows).

Income Statement

DCB Bank Limited has shown consistent revenue growth over the years, with a 5.53% increase in the latest year. The gross profit margin is strong at 39.49%, indicating efficient cost management. However, the net profit margin is relatively low at 8.53%, suggesting room for improvement in profitability. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency.

Balance Sheet

The bank's debt-to-equity ratio is high at 2.87, indicating significant leverage, which could pose risks in volatile markets. Return on equity is decent at 10.81%, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets through equity.

Cash Flow

DCB Bank Limited faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is just covering net income. The negative operating cash flow to net income ratio highlights potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	76.25B	72.12B	58.34B	46.10B	39.65B	39.04B
Gross Profit	30.21B	28.48B	24.00B	21.27B	18.10B	17.33B
EBITDA	8.63B	9.30B	8.16B	7.05B	4.53B	5.09B
Net Income	6.41B	6.15B	5.36B	4.66B	2.88B	3.36B
Balance Sheet
Total Assets	0.00	768.10B	630.37B	523.66B	448.40B	396.02B
Cash, Cash Equivalents and Short-Term Investments	0.00	34.51B	30.66B	23.68B	40.91B	30.89B
Total Debt	0.00	163.12B	110.86B	82.17B	74.93B	70.82B
Total Liabilities	-56.91B	711.19B	579.66B	478.00B	407.91B	358.44B
Stockholders Equity	56.91B	56.91B	50.71B	45.66B	40.49B	37.59B
Cash Flow
Free Cash Flow	0.00	-112.55B	-13.75B	-17.32B	14.49B	-15.82B
Operating Cash Flow	0.00	-111.19B	-12.40B	-15.66B	16.06B	-15.02B
Investing Cash Flow	0.00	-27.92B	-106.18B	-1.65B	-1.57B	-793.73M
Financing Cash Flow	0.00	135.43B	101.84B	81.40M	-3.98B	10.75B

DCB Bank Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 179.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DCBBANK, the sentiment is Positive. The current price of 179.9 is below the 20-day moving average (MA) of 186.75, above the 50-day MA of 179.70, and above the 200-day MA of 149.21, indicating a bullish trend. The MACD of 5.81 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 87.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DCBBANK.

DCB Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMB	79 Outperform	₹96.41B	7.94	―	2.15%	7.08%	7.69%
KTKBANK	70 Outperform	₹68.82B	5.99	―	2.42%	―	―
DCBBANK	68 Neutral	₹64.22B	8.97	―	0.76%	21.44%	17.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSBBANK	58 Neutral	₹76.36B	12.28	―	―	32.90%	12.28%
EQUITASBNK	56 Neutral	₹79.88B	-118.24	―	1.63%	10.02%	-120.18%
ESAFSFB	52 Neutral	₹14.43B	-3.87	―	2.64%	-8.71%	-2192.08%

DCB Bank Limited Corporate Events

DCB Bank Uploads Q3 FY26 Earnings Call Audio for Investor Access

DCB Bank Limited has notified the stock exchanges that the audio recording of its earnings conference call with analysts and investors, held on 23 January 2026 to discuss the unaudited financial results for the third quarter and nine months ended 31 December 2025, has been made available on the bank’s website. The disclosure, made under SEBI’s listing regulations, underscores the bank’s compliance and transparency practices, with the company clarifying that the call contained only information already available in the public domain for the benefit of investors and other stakeholders.

CRISIL Reaffirms High Credit Ratings for DCB Bank, Ups Certificate of Deposit Limit

CRISIL Ratings has reaffirmed DCB Bank’s long-term rating at ‘CRISIL AA-/Stable’ and short-term rating at ‘CRISIL A1+’ across its Tier II bond programmes, short-term bank facilities, short-term fixed deposit programme and an expanded certificate of deposit programme, for which the limit was raised to ₹2,000 crore from ₹1,500 crore. The rating agency cited the bank’s healthy capitalisation, established market position in the SME-focused lending space, and stable senior management as key strengths, while noting constraints such as an average earnings and resource profile, relatively lower CASA share and modest overall scale; the reaffirmation and enhancement of rated limits support DCB Bank’s funding flexibility and underscore confidence in its credit profile, which is relevant for investors, depositors and other stakeholders.

DCB Bank Allots 32,620 Equity Shares Under Employee Stock Option Plan

DCB Bank Limited has allotted 32,620 equity shares with a face value of Rs.10 each to its employees under its Employee Stock Option Plan, following a meeting held on December 26, 2025. This allotment results in a marginal increase in the bank’s issued and paid-up share capital from 321,712,297 to 321,744,917 equity shares, reflecting the bank’s ongoing use of equity-based compensation to incentivise and retain employees while slightly diluting existing shareholdings.

CARE Reaffirms Strong Ratings for DCB Bank on Capital Strength and Stable Asset Quality

DCB Bank Limited has had its credit ratings reaffirmed by CARE Ratings Limited, which maintained a ‘CARE AA-; Stable’ rating on its ₹400 crore Basel III-compliant Tier II bonds and ‘CARE A1+’ on both its enhanced ₹2,000 crore certificate of deposit programme and its short-term fixed deposit programme. The rating action reflects DCB Bank’s comfortable capitalisation backed by regular capital infusions, including recent promoter support from the Aga Khan Fund for Economic Development, consistent profitability, stable asset quality, and a seasoned management team, while also noting constraints such as its moderate resource profile, average earnings compared with peers, and modest scale of operations; the Stable outlook indicates expectations of steady growth in advances and deposits, though profitability may face pressure in FY26 from faster transmission of rate cuts to lending yields than to funding costs.

DCB Bank Announces Trading Window Closure in Compliance with SEBI Regulations

DCB Bank Limited has announced the closure of its trading window in compliance with SEBI’s regulations on insider trading. This closure will be effective from December 16, 2025, until 48 hours after the announcement of the bank’s financial results for the quarter ending December 31, 2025. This move is part of the bank’s adherence to regulatory requirements, ensuring transparency and fairness in its operations.

DCB Bank Engages in Investor Meeting with HDFC Life

DCB Bank Limited participated in a one-to-one investor meeting with HDFC Life Insurance Company Limited, discussing information already available in the public domain. This meeting aligns with the bank’s commitment to transparency and regulatory compliance, potentially enhancing investor relations and market confidence.

DCB Bank Engages in Investor Meeting with Nippon Life

DCB Bank Limited announced that its representatives participated in a one-on-one investor meeting with Nippon Life India Asset Management Limited. The meeting involved discussions on information already available in the public domain, indicating a focus on transparency and maintaining investor relations.

DCB Bank Engages in Investor Meeting with ChrysCapital

DCB Bank Limited has announced its participation in a one-to-one investor meeting with ChrysCapital Advisors LLP. The meeting, held on November 20, 2025, involved discussions limited to information already available in the public domain, indicating a focus on transparency and stakeholder engagement.