SBI share price gains ahead of Q4 results 2025. Should you buy as market expects mixed earnings?
State Bank of India (SBI), the largest state-run lender in the country, is set to announce its Q4 results tomorrow, Saturday, May 3. SBI share price gained over a percent on Friday ahead of Q4 results. SBI share price rose as much as 1.87% to ₹802.95 apiece on the BSE.
SBI board of directors is scheduled to meet on May 3 to consider earnings for the fourth quarter of FY25 along with the earnings for the full financial year 2024-2025.
The board will also discuss and approve the proposal for raising equity during FY26 by way of Follow-on Public offer (FPO) / Rights issue / Qualified Institutional Placement (QIP) and any other mode or combination of these, as may be decided at the opportune time or as may be approved by Government of India and the Reserve Bank of India (RBI), SBI said in a regulatory filing.
SBI Q4 results are expected to see a drop in net profit due to rise in bank’s provisions during the quarter ended March 2025. Here’s what to expect from SBI Q4 results 2025:
SBI Q4 results 2025 Preview
SBI is expected to report a 10%-15% drop in net profit for the March 2025 quarter, according to estimates by five brokerage firms. As per Axis Securities, SBI is estimated to post a net profit of ₹18,106 crore, registering a fall of 12.5% from ₹20,698 crore in the year-ago period.
The bank’s net interest income (NII) in Q4FY25 is likely to increase 2.5% to ₹42,696 crore from ₹41,655 crore, year-on-year (YoY). Net interest margin (NIM) of the bank is estimated to decline marginally on a sequential basis.
Pre-Provisioning Operating Profit (PPOP) in the quarter ended March 2025 is estimated to fall 6.5% to ₹26,886 crore from ₹28,748 crore, YoY. However, PPOP is expected to grow on a quarter-on-quarter (QoQ) basis by 14.2% on the back of improved Opex ratios and better non-interest income, analysts said.
SBI’s provisions in Q4FY25 is estimated to be ₹2,619 crore, up 187.4% from ₹911 crore QoQ, and up 62.7% YoY from ₹1,610 crore.
Analysts expect SBI’s credit costs to normalise, while asset quality to improve marginally.
According to Motilal Oswal Financial Services, SBI’s gross non-performing assets (GNPA) as a percentage of gross advance, is likely to fall to 1.96% in Q4FY25 from 2.07% in Q3FY25.
Net NPA ratio is also likely to drop to 0.50% in the March 2025 quarter from 0.53% from December 2024 quarter.
SBI’s advances and deposits growth are expected to remain healthy, ahead of systemic growth. MOFSL expects SBI’s deposits growth in Q4FY25 to be at 9.2%, while loan growth is pegged at 13.1%.
Should you buy SBI shares ahead of Q4 results?
SBI share price has gained 3% over the past month but has remained largely flat on a year-to-date (YTD) basis. Over the past year, the PSU banking stock has declined by more than 3%. However, over a two-year period, SBI share price has delivered a robust return of 40%, and over the past five years, it has generated multibagger returns of 320%.
MOFSL has a ‘Buy’ rating on SBI shares with a target price of ₹925 apiece.
On the technical front, SBI share price has broken out of a bullish 59-day cup and handle pattern on daily charts with above-average volumes in mid-April, according to Anshul Jain, Head of Research at Lakshmishree Investments.
“The current downmove is merely a retest of the breakout zone near ₹780. Price action remains constructive, and dips towards the ₹780 – 770 zone offer a buying opportunity. As long as SBI stock holds above this range, an immediate upside towards ₹835 is likely, with a further potential to test ₹875 in the coming sessions,” Jain said.
At 3:20 PM, SBI share price was trading 1.62% higher at ₹800.95 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
