Suryoday Small Finance Bank Limited (SURYODAY) AI Stock Analysis

• Market Cap: ₹13.14B
• Dividend Yield: N/A
• Average Volume (3M): 90.09K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.14
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 8,214
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 3.44
• Shares Outstanding: 106,289,825
• 10 Day Avg. Volume: 25,094
• 30 Day Avg. Volume: 90,089
• PEG Ratio: -0.21
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -0.68
• 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): 14.8
• Revenue Forecast (FY): ₹14.76B

• Rating: 51 Neutral
• Price Target: ₹127.00 ▼(-11.93% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back mainly by weak cash-flow performance and FY2025 profitability deterioration despite strong revenue growth and improved leverage. Technical indicators also point to a weak downtrend (price below key moving averages and negative MACD). Valuation is moderate on P/E but lacks dividend support data.

Positive Factors

Strong revenue growth

Consistent, double-digit top-line growth and FY2025 revenue nearly doubling vs FY2024 indicate durable demand for the bank’s lending and deposit services. A sustainably growing loan book supports net interest income expansion and scale advantages over the next 2–6 months.

Improved leverage profile

Material decline in leverage improves financial flexibility and reduces refinancing and interest burden risk. Lower debt/equity supports capacity to absorb shocks, maintain lending activity, and fund growth without immediate reliance on costly external capital.

Niche retail / micro enterprise focus

Concentrating on underserved retail and micro/small enterprises is a structural advantage: sticky customer relationships, diversified small-ticket loan flows, and opportunities to deepen deposits and cross-sell, supporting stable core earnings over time.

Negative Factors

Weak cash generation

Deeply negative operating and free cash flow in FY2025 signals poor cash conversion and higher funding risk. Sustained negative cash generation can force reliance on external financing, raise funding costs, and constrain capital for loan growth or provisioning over coming months.

Profitability deterioration

Sharp fall in net income and margin compression reduces internal capital generation and undermines the economics of growth. Lower profitability limits reinvestment, weakens buffer for credit losses, and makes sustained expansion harder without restoring margins.

Returns weakened (ROE decline)

Halved ROE reflects that asset growth is outpacing earnings power, diluting shareholder returns. Persistently low returns reduce ability to attract capital on favorable terms and may pressure strategic choices on credit mix or cost structure to rebuild profitability.

Suryoday Small Finance Bank Limited Business Overview & Revenue Model

Company Description

Suryoday Small Finance Bank Limited operates as a small finance bank primarily serving the unserved and underserved with a focus on financial inclusion in India. It operates through Treasury, Retail Banking, Wholesale Banking, and Other Banking Operations segments. The company accepts savings and current accounts, term and fixed deposits, and recurring deposits. It also provides finance for mortgage and commercial vehicles; and loans to micro, small, and medium enterprises, as well as loans to non-banking finance companies. In addition, the company offers home loans, secured business loans against property, joint liability group loans, and emergency credit line guarantee schemes. Further, it provides life, general, and group health insurance, as well as national pension and social security schemes. Additionally, the company offers debit cards and NRI banking services; and internet, phone, tab, and mobile banking services. As of March 31, 2021, it operated 556 banking outlets across 13 states and union territories. The company was formerly known as Suryoday Micro Finance Limited and changed its name to Suryoday Small Finance Bank Limited in January 2017. Suryoday Small Finance Bank Limited was incorporated in 2008 and is based in Navi Mumbai, India.

How the Company Makes Money

Suryoday Small Finance Bank primarily makes money through (1) interest income from lending and investments and (2) fee and commission income from providing banking services. 1) Net interest income (core earnings): The bank raises funds mainly through customer deposits (savings accounts, current accounts, and fixed/term deposits) and then deploys these funds into interest-earning assets such as loans and permitted investments (e.g., government/approved securities). The spread between the interest it earns on loans/investments and the interest it pays on deposits and other borrowings contributes to net interest income, which is typically the largest revenue driver for banks. 2) Fees and commissions (non-interest income): The bank also earns fees from various services such as account-related charges, payments and transaction services, and other customer service fees. It may also earn commissions or distribution income from offering third-party financial products (for example, insurance or investment products) where permitted; if specific product lines are not publicly detailed in a given source, the exact mix is null. 3) Other income: Like other banks, it can generate treasury/market-related income (such as gains or losses on investments and trading, and foreign exchange-related income where applicable). The magnitude and consistency of this income can vary with market conditions and regulatory requirements. Key factors affecting earnings include the bank’s ability to grow and retain low-cost deposits, maintain healthy lending yields without increasing credit losses, manage operating costs (branch and technology expenses), comply with small finance bank regulatory norms (including priority sector lending and statutory liquidity requirements), and control asset quality (delinquencies and provisioning). Specific material partnerships contributing to earnings are null if not explicitly disclosed in accessible, verifiable sources.

Suryoday Small Finance Bank Limited Financial Statement Overview

Summary

Strong revenue growth and improved leverage in FY2025 are positives, but profitability weakened sharply (lower net income and margin) and cash flow quality deteriorated materially with deeply negative operating and free cash flow, raising funding/cash-conversion risk.

Income Statement

Revenue growth has been strong and consistent over the last few years, with FY2025 nearly doubling versus FY2024. Profitability, however, weakened meaningfully in FY2025: net income fell (to ~₹1.15B from ~₹2.16B) and net margin compressed to ~5.3% from ~11.9%. Overall, the top-line trajectory is a clear strength, but earnings quality and margin stability are the key watch-outs.

Balance Sheet

Leverage improved in FY2025, with debt-to-equity declining to ~1.41x from ~2.02x in FY2024, alongside a solid expansion in total assets. That said, returns softened: return on equity fell to ~6.0% in FY2025 from ~12.0% in FY2024, suggesting the balance sheet is growing faster than sustainable profitability. Net/net: better leverage profile, but weaker returns in the most recent year.

Cash Flow

Cash generation is the weakest area. FY2025 posted sharply negative operating cash flow (~-₹14.8B) and negative free cash flow (~-₹16.6B), swinging from positive operating and free cash flow in FY2024. The multi-year pattern is also volatile with several negative years, indicating inconsistent cash conversion and higher funding/capital strain risk despite reported profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.61B	21.71B	18.08B	12.81B	10.35B	8.53B
Gross Profit	9.68B	13.23B	11.82B	8.44B	6.78B	4.87B
EBITDA	770.92M	1.99B	0.00	1.44B	-1.08B	271.23M
Net Income	652.05M	1.15B	2.16B	776.91M	-930.32M	118.55M
Balance Sheet
Total Assets	166.04B	156.14B	123.78B	98.61B	81.80B	67.12B
Cash, Cash Equivalents and Short-Term Investments	15.12B	17.09B	11.80B	8.33B	9.78B	5.93B
Total Debt	21.65B	27.10B	36.54B	27.65B	33.81B	24.70B
Total Liabilities	146.13B	136.87B	105.73B	82.76B	66.75B	51.15B
Stockholders Equity	19.91B	19.27B	18.05B	15.85B	15.05B	15.97B
Cash Flow
Free Cash Flow	-8.57B	-16.59B	3.27B	-1.90B	-4.38B	-8.96B
Operating Cash Flow	-8.26B	-14.82B	3.83B	-977.00M	-3.47B	-8.76B
Investing Cash Flow	-3.14B	-10.59B	-2.63B	-2.66B	-1.58B	-2.80B
Financing Cash Flow	8.66B	30.71B	22.89B	15.26B	14.79B	9.15B

Suryoday Small Finance Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPITALSFB	72 Outperform	₹10.87B	8.67	―	1.97%	13.76%	11.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JSFB	58 Neutral	₹36.76B	115.46	―	―	13.36%	-50.07%
ESAFSFB	52 Neutral	₹11.90B	48.24	―	2.64%	-8.71%	-2192.08%
SURYODAY	51 Neutral	₹13.14B	10.24	―	―	―	―
UJJIVANSFB	46 Neutral	₹103.37B	13.80	―	2.82%	6.15%	-64.12%
UTKARSHBNK	41 Neutral	₹21.14B	-1.76	―	2.82%	2.35%	-261.81%

Suryoday Small Finance Bank Limited Corporate Events

Suryoday Small Finance Bank Schedules Virtual Meet With Institutional Investors

Suryoday Small Finance Bank has announced that it will hold a virtual group meeting with institutional investors on March 9, 2026, hosted by Arihant Capital, with discussions restricted to publicly available information. The bank has made the related investor presentation and details of the interaction available on its website, emphasizing compliance with SEBI disclosure regulations and confirming that no unpublished price-sensitive information will be shared during the meeting.

Suryoday Small Finance Bank Clears Q3 FY26 Results, Plans Capital Raise of Up to ₹1,000 Crore

Suryoday Small Finance Bank’s board has approved the unaudited financial results for the third quarter and nine months ended 31 December 2025, along with taking on record the limited review report from its joint statutory auditors and associated regulatory disclosures. The bank also confirmed it undertook no equity issuances during the quarter, has no outstanding secured listed non-convertible debt securities, and fully utilized proceeds from past non-convertible issuances without deviations, while simultaneously moving to seek shareholder approval via postal ballot for raising up to ₹1,000 crore through various equity and equity-linked instruments and for the three-year re-appointment of independent director Krishna Prasad Nair after his current term ends in July 2026, steps that signal a planned capital-raising drive and continuity in board-level oversight.

Suryoday Small Finance Bank Schedules Q3 & 9M FY2026 Earnings Call for January 23

Suryoday Small Finance Bank Limited has announced that its senior management will host an earnings conference call with analysts and investors on January 23, 2026, to discuss the bank’s unaudited financial results for the third quarter and nine months ended December 31, 2025. The call, which will feature the managing director and CEO, executive director, chief financial officer and head of investor relations, underscores the bank’s efforts to maintain transparent communication with the market and provide detailed insights into its recent financial performance, which may help stakeholders assess its operating trajectory and positioning within the small finance banking space.