Jana Small Finance Bank Ltd (JSFB) AI Stock Analysis

• Market Cap: ₹39.14B
• Dividend Yield: N/A
• Average Volume (3M): 5.69K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.25
• Revenue Growth: 13.36%
• EPS Growth: -50.07%
• Country: IN
• Employees: 21,800
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.92
• Shares Outstanding: 105,295,296
• 10 Day Avg. Volume: 4,739
• 30 Day Avg. Volume: 5,692
• PEG Ratio: -0.18
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -1.71
• 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): 47
• Revenue Forecast (FY): ₹34.67B

• Rating: 58 Neutral
• Price Target: ₹418.00 ▲(0.82% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is primarily held back by weaker financial performance—especially the -34% revenue decline, margin compression, and negative operating/free cash flow—despite improved leverage. Technicals are weak-to-neutral with price below key longer-term moving averages and a negative MACD. Valuation is reasonable on P/E, but lack of dividend yield data limits additional support.

Positive Factors

Gross Profit Margin

A 100% gross profit margin indicates extremely efficient cost management at the gross level, providing durable operating leverage. This margin strength supports resilience to funding cost swings and gives room to absorb credit losses or invest in retail distribution over the next 2-6 months.

Improving Leverage

A lower debt-to-equity ratio denotes improved leverage management and reduced financial risk. For a regional small finance bank, better leverage increases balance sheet flexibility to expand lending, withstand shocks, and access funding markets more reliably over the medium term.

Free Cash Flow Coverage

FCF covering net income suggests the bank can generate cash after investments sufficient to support reported earnings. This strengthens capacity to fund lending, regulatory capital needs or selective reinvestment, offering durable support despite short-term volatility in operating cash flows.

Negative Factors

Revenue Decline

A 34% year-on-year revenue decline materially reduces the bank's scale and interest income base. Sustained revenue contraction undermines ability to cover fixed costs, invest in origination channels, and maintain lending growth, posing medium-term risks to earnings recovery and market position.

Operating Cash Flow Weakness

Negative operating cash flow implies core banking operations are not converting accounting earnings into cash, increasing liquidity and funding risk. Over several months this can constrain lending capacity, raise reliance on wholesale funding, and limit the bank's ability to absorb credit stress or grow loan book.

Declining Profitability and ROE

Falling net margin and a sharp ROE drop signal reduced efficiency in converting assets and equity into shareholder returns. This deterioration pressures retained earnings, constrains capital generation internally, and weakens long-term return profiles unless operational or revenue trends reverse.

Jana Small Finance Bank Ltd Business Overview & Revenue Model

Company Description

Jana Small Finance Bank Limited provides various banking products and services to individuals and enterprises in India. It operates through Treasury, Retail Banking, Corporate/Wholesale Banking, and Other Banking Operations segments. The company offers current and savings accounts; fixed, recurring, and other deposits; and loans, such as two-wheeler, group, business, gold, home improvement, agri group and individual, and home loans, as well as consumer education on loan overdue concepts. It also offers life, general, and health insurance products; cards; and investment and payment services, as well as mobile, internet, and corporate internet banking services. The company was formerly known as Janalakshmi Financial Services Limited and changed its name to Jana Small Finance Bank Limited in March 2018. The company was founded in 1999 and is based in Bengaluru, India.

How the Company Makes Money

Jana Small Finance Bank generates revenue through various channels, primarily by earning interest on loans provided to customers. The bank offers microloans, personal loans, and small business loans, which typically carry higher interest rates compared to traditional banking products, allowing for substantial interest income. Additionally, JSFB earns money through fees and commissions associated with account maintenance, transaction services, and other banking products. The bank may also generate income from investments in government securities and bonds. Strategic partnerships with microfinance institutions and organizations targeting financial inclusion further enhance its reach and customer base, contributing to its overall earnings. Overall, the combination of interest income from loans and fee-based services forms the core of JSFB's revenue model.

Jana Small Finance Bank Ltd Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin, but a sharp -34% revenue growth in 2025 and lower net margin (20.8% vs 25.5% prior) weaken profitability. Balance sheet leverage improved (debt-to-equity 0.94) but ROE fell to 12.2%, and cash flow is a key drag with negative operating and free cash flow in 2025.

Income Statement

Jana Small Finance Bank Ltd has shown a mixed performance in its income statement. The gross profit margin remains strong at 100%, indicating efficient cost management. However, the net profit margin has decreased from 25.5% in 2024 to 20.8% in 2025, reflecting a decline in profitability. The revenue growth rate is negative at -34% for 2025, which is a significant concern. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet shows a stable debt-to-equity ratio of 0.94 in 2025, which is an improvement from previous years, indicating better leverage management. Return on equity has decreased to 12.2% from 18.7% in 2024, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio is not provided, but the overall leverage position seems to be improving.

Cash Flow

The cash flow statement reveals challenges, with negative operating and free cash flow in 2025. The free cash flow to net income ratio is positive at 1.03, indicating that free cash flow covers net income, but the operating cash flow to net income ratio is negative, highlighting cash flow management issues. The free cash flow growth rate is not calculable due to negative values, suggesting volatility in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.27B	53.67B	45.11B	36.30B	30.05B	26.76B
Gross Profit	31.12B	30.50B	26.25B	22.15B	16.68B	14.41B
EBITDA	4.15B	5.34B	5.76B	3.25B	982.86M	1.55B
Net Income	4.33B	5.01B	6.70B	2.56B	174.71M	722.60M
Balance Sheet
Total Assets	0.00	384.64B	327.10B	256.44B	201.89B	190.79B
Cash, Cash Equivalents and Short-Term Investments	0.00	44.59B	20.28B	19.16B	15.36B	21.42B
Total Debt	0.00	38.67B	111.06B	99.86B	71.13B	48.15B
Total Liabilities	-41.18B	343.45B	291.33B	238.46B	189.88B	179.64B
Stockholders Equity	41.18B	41.18B	35.77B	17.97B	12.01B	11.15B
Cash Flow
Free Cash Flow	0.00	-25.49B	12.92B	-11.63B	8.18B	5.73B
Operating Cash Flow	0.00	-24.75B	13.69B	-11.37B	8.59B	6.15B
Investing Cash Flow	0.00	-3.21B	-7.80B	-4.34B	-13.30B	-12.66B
Financing Cash Flow	0.00	52.17B	334.76M	49.01B	9.11B	19.17B

Jana Small Finance Bank Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 414.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:JSFB, the sentiment is Negative. The current price of 414.6 is above the 20-day moving average (MA) of 375.91, above the 50-day MA of 393.50, and below the 200-day MA of 454.38, indicating a bearish trend. The MACD of -4.79 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 15.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:JSFB.

Jana Small Finance Bank Ltd 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%
CSLFINANCE	66 Neutral	₹6.05B	6.97	―	0.93%	17.32%	13.66%
UTIAMC	65 Neutral	₹135.26B	24.15	―	2.30%	-9.65%	-30.52%
JSFB	58 Neutral	₹39.14B	12.26	―	―	13.36%	-50.07%
EQUITASBNK	56 Neutral	₹74.46B	-111.10	―	1.63%	10.02%	-120.18%
ESAFSFB	52 Neutral	₹13.84B	-3.75	―	2.64%	-8.71%	-2192.08%
SURYODAY	51 Neutral	₹12.36B	18.14	―	―	―	―

Jana Small Finance Bank Ltd Corporate Events

Jana Small Finance Bank to Engage Investors at Systematix India Annual Conference

Jana Small Finance Bank has announced that its Managing Director & CEO and Chief Financial Officer will participate in the MANTHAN – Systematix India Annual Conference on 10 February 2026, to be held virtually from Bengaluru. The investor and analyst interaction will be based solely on the bank’s Q3 FY2025-26 financial results and other publicly available information, with the lender explicitly stating that no unpublished price-sensitive information will be shared, underscoring its adherence to SEBI disclosure norms and its ongoing engagement with the investor community.