ESAF Small Finance Bank Limited (ESAFSFB) AI Stock Analysis

• Market Cap: ₹13.31B
• Dividend Yield: 2.67%
• Average Volume (3M): 22.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -8.71%
• EPS Growth: -2192.08%
• Country: IN
• Employees: 5,479
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -2.25
• Shares Outstanding: 515,572,750
• 10 Day Avg. Volume: 23,527
• 30 Day Avg. Volume: 22,820
• PEG Ratio: 0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -3.48
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹28.00 ▲(8.49% Upside)

The overall stock score of 45 reflects significant challenges in financial performance, particularly in profitability and cash flow. Technical indicators suggest a bearish trend, and valuation metrics highlight concerns due to the negative P/E ratio. The dividend yield provides some relief, but the stock's overall outlook remains cautious.

Positive Factors

Revenue Growth

Strong revenue growth indicates a positive trajectory and suggests that the company's products and services are gaining market traction, which is crucial for long-term sustainability.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, providing the company with greater flexibility to invest in growth opportunities.

Gross Profit Margin

A healthy gross profit margin suggests efficient cost management and the ability to maintain profitability despite revenue fluctuations, supporting long-term financial health.

Negative Factors

Profitability Challenges

Negative profit margins indicate that the company is struggling to convert revenue into profit, which could hinder its ability to reinvest in the business and sustain growth.

Cash Flow Issues

Negative cash flow suggests liquidity issues, which can limit the company's ability to fund operations and growth initiatives, posing a risk to long-term viability.

Negative Return on Equity

Negative ROE indicates inefficiency in generating returns from shareholders' investments, which could deter future investment and impact the company's growth potential.

ESAF Small Finance Bank Limited Business Overview & Revenue Model

Company Description

ESAF Small Finance Bank Limited (ESAFSFB) is a licensed small finance bank in India that focuses on providing financial services to underserved and unbanked populations. Established to promote inclusive banking, ESAFSFB offers a range of products including savings accounts, current accounts, fixed deposits, and loans tailored for individuals and small businesses. The bank also provides microfinance services, aiming to empower small entrepreneurs and promote sustainable economic growth in rural and semi-urban areas.

How the Company Makes Money

ESAF Small Finance Bank generates revenue primarily through the interest earned on loans and advances provided to customers. This includes personal loans, business loans, and microfinance products. The interest rate charged on these loans is typically higher than the interest paid on customer deposits, creating a net interest margin that contributes significantly to the bank's profitability. Additionally, ESAFSFB earns fees from various banking services, such as account maintenance, transaction fees, and other ancillary services. The bank may also engage in partnerships with government programs and NGOs to facilitate financial inclusion initiatives, which can enhance its client base and, subsequently, its revenue streams.

ESAF Small Finance Bank Limited Financial Statement Overview

Summary

ESAF Small Finance Bank Limited shows strong revenue growth, but profitability and cash flow challenges persist. The company has improved its leverage position, but negative returns on equity and cash flow issues highlight areas of concern. Continued focus on improving profitability and cash flow management is essential for future stability.

Income Statement

The company has shown strong revenue growth of 73.92% in the latest year, indicating a positive trajectory. However, the negative net profit margin of -12.04% and negative EBIT margin of -16.01% highlight significant profitability challenges. The gross profit margin remains healthy at 29.30%, but the overall profitability is concerning due to the negative net income.

Balance Sheet

The debt-to-equity ratio has improved to 0.72, indicating better leverage management compared to previous years. However, the return on equity is negative at -26.75%, reflecting poor returns for shareholders. The equity ratio is not directly provided, but the improvement in debt management is a positive sign.

Cash Flow

The company faces challenges with negative operating cash flow and free cash flow, indicating liquidity issues. The free cash flow to net income ratio of 1.66 suggests some efficiency in converting net income to cash, but the overall cash flow position is weak, with a significant decline in free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.15B	43.29B	42.60B	30.73B	21.48B	10.51B
Gross Profit	23.88B	25.19B	28.11B	20.55B	13.55B	10.51B
EBITDA	-8.87B	-6.34B	6.21B	4.48B	875.06M	1.70B
Net Income	-6.65B	-5.21B	4.26B	3.02B	547.32M	1.05B
Balance Sheet
Total Assets	0.00	271.78B	260.87B	202.24B	177.08B	123.39B
Cash, Cash Equivalents and Short-Term Investments	0.00	19.79B	14.23B	7.67B	15.12B	18.19B
Total Debt	0.00	14.06B	25.73B	26.80B	22.57B	15.48B
Total Liabilities	-19.49B	252.29B	235.95B	185.09B	162.96B	109.87B
Stockholders Equity	19.49B	19.49B	24.92B	17.15B	14.12B	13.52B
Cash Flow
Free Cash Flow	0.00	-3.85B	7.94B	-6.42B	5.34B	2.81B
Operating Cash Flow	0.00	-2.32B	8.65B	8.79B	5.88B	3.31B
Investing Cash Flow	0.00	-7.69B	-5.83B	-5.73B	-9.82B	-6.38B
Financing Cash Flow	0.00	15.57B	54.37B	22.50B	50.74B	26.24B

ESAF Small Finance Bank Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESAFSFB, the sentiment is Negative. The current price of 25.81 is below the 20-day moving average (MA) of 26.10, below the 50-day MA of 27.34, and below the 200-day MA of 29.47, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 40.44 is Neutral, neither overbought nor oversold. The STOCH value of 47.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ESAFSFB.

ESAF Small Finance Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JSFB	62 Neutral	₹45.23B	10.77	―	―	13.36%	-50.07%
UJJIVANSFB	60 Neutral	₹105.28B	25.21	―	2.83%	6.15%	-64.12%
EQUITASBNK	56 Neutral	₹66.31B	-72.44	―	1.71%	10.02%	-120.18%
ESAFSFB	45 Neutral	₹13.31B	-2.23	―	2.67%	-8.71%	-2192.08%
UTKARSHBNK	45 Neutral	₹26.30B	-2.54	―	2.87%	2.35%	-261.81%

ESAF Small Finance Bank Limited Corporate Events

RBI Blocks Share Acquisition in ESAF Small Finance Bank’s Promoter Scheme

ESAF Small Finance Bank Limited announced that it received communication from the Reserve Bank of India regarding a Scheme of Arrangement involving its promoter company and identified shareholders. The RBI has denied approval for Dia Vikas Capital Private Limited to acquire more than 5% of the bank’s paid-up share capital under the scheme. This decision is significant as it affects the promoter shareholding structure, prompting the promoter company’s board to assess implications and explore alternative actions to comply with RBI’s ownership guidelines.

ESAF Small Finance Bank Enhances Shareholder Engagement with Digital Access to Annual Report

ESAF Small Finance Bank Limited has announced the dispatch of letters to shareholders whose email addresses are not registered, providing them with a web link to access the bank’s Annual Report for the financial year 2024-25. The bank has also scheduled its 9th Annual General Meeting to be held on September 24, 2025, through video conferencing. This move is part of the bank’s compliance with SEBI regulations and aims to ensure that all shareholders have access to important financial information, thereby enhancing transparency and stakeholder engagement.

ESAF Small Finance Bank Announces Virtual AGM for 2025

ESAF Small Finance Bank Limited announced the publication of the notice for its 9th Annual General Meeting, which will be conducted via video conferencing on September 24, 2025. This move reflects the bank’s adaptation to modern communication methods, potentially enhancing accessibility for stakeholders and aligning with regulatory requirements.

ESAF Small Finance Bank Releases Q1 FY ’26 Earnings Call Transcript

ESAF Small Finance Bank Limited announced the availability of the transcript from its earnings conference call for the quarter ending June 30, 2025. The call, held on August 11, 2025, discussed the bank’s unaudited standalone financial results. This release is part of the bank’s efforts to maintain transparency and keep stakeholders informed about its financial performance and strategic direction.

ESAF Small Finance Bank Revises Q1 2025 Investor Presentation

ESAF Small Finance Bank Limited has revised its Investor Presentation for the quarter ended June 30, 2025, due to clerical and typographical errors in the initial submission. The corrected presentation, which outlines the bank’s unaudited standalone financial results for the quarter, is now available on the bank’s website, reflecting the company’s commitment to transparency and accurate financial reporting.

ESAF Small Finance Bank Releases Q1 2025 Financial Results

ESAF Small Finance Bank Limited announced the publication of its unaudited standalone financial results for the quarter ended June 30, 2025, in prominent newspapers. This move signifies the bank’s commitment to transparency and regulatory compliance, potentially impacting its market perception positively. By adhering to disclosure requirements, ESAF Small Finance Bank aims to maintain stakeholder trust and reinforce its position within the financial services industry.

ESAF Small Finance Bank’s Secured Loan Surge and CASA Growth in Q1 FY26

ESAF Small Finance Bank reported significant growth in its secured loan disbursements, which increased by 142.4% year-over-year, driven by a substantial rise in the gold loan portfolio. Despite posting a net loss of ₹81 crore for Q1 FY26, the bank showed improvements in its CASA ratio and total deposits, indicating a stable funding base. The bank’s strategic focus on secured assets and prudent risk management, including increased provisions for stressed assets, has strengthened its financial position. With a growing customer base and continued investment in technology, ESAF SFB is poised for sustainable growth, while maintaining its commitment to financial inclusion.

ESAF Small Finance Bank Schedules Q1 FY26 Earnings Call

ESAF Small Finance Bank Limited has announced a conference call for analysts and investors to discuss its unaudited standalone financial results for the quarter ending June 30, 2025. This call is scheduled for August 11, 2025, and will feature key executives from the bank. The financial results and related presentations will be made available on the bank’s website, providing stakeholders with insights into the bank’s performance and strategic direction.