BoB Q1 Results Preview: PAT, NII Likely To Decline Despite Healthy Credit Growth; Asset Quality Seen Stable

On Friday, July 25, Bank of Baroda (BoB) will release its financial results for the quarter that ended on June 30, 2025. Major brokerage firms' reports indicate that Bank of Baroda's earnings performance in Q1FY26 is expected to be moderate. Public sector banks (PSBs), such as the Bank of Baroda (BoB), are anticipated to have more severe short-term pressure on their net interest margins (NIMs) than private banks because of their T+1 loan repricing models, according to Motilal Oswal.

"BOB is expected to report a drop of 5% in net profit and NII as against the corresponding period in the previous FY. On the other hand, credit growth at 10% is likely to be strong. ROA is seen falling to 1%. This seems to be a slight disappointment as other public sector banks have done reasonably well, especially in comparison to private sector banking counterparts," commented Gaurav Goel (Entrepreneur and SEBI-Registered Investment advisor).

BoB Q1FY26 Earnings Preview By Equirus Securities

For the first quarter of FY26, Bank of Baroda is anticipated to report a muted set of results, with earnings indicating headwinds from slower credit growth and margin compression. According to research by Equirus Securities, Net Interest Income (NII) is projected to be Rs 10,048.9 crore, representing a decline of 8.8% on a quarterly basis and 13.4% on a YoY basis.

The estimated Pre-Provisioning Profit (PPI) is Rs 6,681.3 crore, a 17.8% QoQ and 6.7% YoY fall. Profit After Tax (PAT) is predicted to reach Rs 4,107.4 crore, a decline of 7.9% YoY and 18.6% sequentially. The anticipated earnings per share (EPS) would be Rs 7.9, a 16.1% YoY drop from Rs 9.7 in Q4FY25. The Net Interest Margin (NIM) is expected to go down 66 basis points from Q1FY25, or 25 basis points on a quarterly basis, to 2.6%, as per Equirus Securities. While asset quality is expected to remain stable.

BoB Q1FY26 Earnings Preview By Yes Securities

With an estimated Net Interest Income (NII) of Rs 11,074.7 crore, representing a 4.5% YoY fall but a modest sequential rise of 0.5%, Bank of Baroda is anticipated to record a stable but moderate performance for Q1FY26. Profit After Tax (PAT) is anticipated to reach Rs 4,573.4 crore, down 2.6% YoY and 9.4% sequentially, while Pre-Provision Operating Profit (PPOP) is predicted to reach Rs 7,714.9 crore, up 7.7% YoY but down 5.1% QoQ.

Even as deposit costs rise, declining advance rates will likely cause NII growth to lag behind loan growth, compressing Net Interest Margins (NIMs). According to Yes Securities, asset quality is expected to stay consistent, with slippages and provisions remaining stable sequentially.

BoB Q1FY26 Earnings Preview By Axis Securities

According to Axis Securities, Bank of Baroda is anticipated to release a soft set of Q1FY26 results, influenced by margin pressure and weak income growth. With NIM compression still having an impact on core earnings, Net Interest Income (NII) is expected to drop by 2.9% sequentially and 7.8% annually to Rs 10,698 crore. Although non-interest income still represents a 59.8% growth over the year-ago quarter, it is anticipated to drop precipitously by 23.7% QoQ to Rs 3,975 crore. Pre-Provision Operating Profit (PPOP) is projected to be Rs 7,070 crore, down 1.3% YoY and 13.1% QoQ.

With a modest 1.9% QoQ decline but a 50.6% YoY increase, provisions are expected to be steady at Rs 1,522 crore. It is anticipated that net profit would be Rs 4,149 crore, down 17.8% sequentially and 6.9% annually, while earnings per share (EPS) will be Rs 8.0. Credit costs are anticipated to be under control, and asset quality is believed to be modestly improving.

Bank of Baroda Target Price

"Bank of Baroda (CMP ₹239.67) is currently trading in a consolidation range with a mildly bullish bias. The stock has found steady support near ₹235, which has held well in recent sessions. A sustained move above the immediate resistance at ₹245 could trigger fresh upward momentum, potentially pushing the stock toward ₹255-₹260 levels. Momentum indicators like RSI are stable, indicating neutral sentiment with a slight positive tilt. As long as the stock remains above ₹235, the trend can be considered healthy. Traders may consider accumulating on dips near ₹236-₹238 with a stop-loss below ₹234 for short-term gains," commented Riyank Arora, technical analyst at Mehta Equities.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.