Q2 Results impact: SBI Cards shares drop 4% after Sept quarter earnings miss estimates, Zen Tech down 7%

SBI Cards, Zen Tech shares

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26 Aug, 2025 12:21

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The shares of SBI Cards and Zen Technologies dropped in trade on October 27 after the second quarter earnings for the credit card issuer and defence player failed to meet expectations. SBI Cards shares fell more than 4 percent, while Zen Tech shares plunged nearly 7 percent.

SBI Cards shares were trading at Rs 890.40 apiece, while Zen Tech shares were trading at Rs 1,305 apiece in the early trading hours of Monday.

SBI Cards Q2 Results:

SBI Cards and Payment Services reported a net profit of Rs 445 crore for the July-September quarter of the financial year 2026. This marked a nearly 10 percent year-on-year increase from the Rs 404 crore net profit reported in the corresponding quarter of the previous financial year.

The firm's revenue from operations meanwhile rose more than 12 percent YoY to Rs 4,961 crore during the quarter under review. It had earlier reported revenue from operations at Rs 4,421 crore during the same period last year.

Macquarie on SBI Cards:

Macquarie kept a 'Neutral' call on the stock, with a target price of Rs 990 per share. This implies an upside potential of nearly 7 percent from the stock's previous closing price. The international brokerage said that the firm's profit after tax missed estimates, driven by higher operating expenditure.

It noted that all eyes are currently on the credit cost trajectory. Macquarie expects the firm's net interest margin to improve in the coming quarters. It noted that the stock appears expensive at 4.5x FY27 P/B for an RoA trajectory of 3 percent (H1 FY26).

Jefferies on SBI Cards:

Jefferies kept a 'Hold' call on the stock, with a target price of Rs 1,010 per share. This implies an upside potential of nearly 9 percent from the stock's previous closing price.

The international brokerage noted that the Q2 profit after tax was below estimate on lower NIM and fee income, as well as slightly higher operating expenditure. The firm's most asset quality metrics improved sequentially, which indicates that the stress is abating, Jefferies added.

The brokerage however said that asset growth outlook stays modest and fee income pressure should persist. It has cut FY26-27 EPS by 7-14 percent.

Nuvama on SBI Cards:

Nuvama meanwhile downgraded SBI Cards shares to 'Hold', with a target price of Rs 1,025 per share. This implies an upside potential of more than 10 percent from the stock's previous closing price. The international brokerage noted that the strong growth in Q2 retail spends (9 percent QoQ) and receivables (6 percent QoQ) was boosted by festive demand.

However, NIM, fees, opex and credit cost missed consensus, Nuvama added. NIM stayed flat QoQ despite a 51 bps YoY decline in CoF due to a higher share of transactors, while credit cost contracted 4 percent QoQ to 9 percent, but missed consensus by 5 percent, the brokerage added.

It noted that the company's management has guided that credit cost would fall below 9 percent in FY26. It added that the stock is trading at 40x/27x Pe Fy26e/27e, leaving no room for upside.

Zen Tech Q2 Results:

Zen Technologies on October 25 reported a net profit of Rs 59.40 crore for the second quarter of the ongoing financial year 2026. This marks a 4.6 percent YoY drop from the Rs 62.27 crore net profit reported in Q2 FY25.

The defence player's revenue from operations meanwhile dropped more than 28 percent YoY to Rs 173.57 crore in Q2 FY26. The company had earlier reported revenue from operations at Rs 241.84 crore for Q2 FY25.

Motilal Oswal on Zen Tech:

Motilal Oswal remained 'Neutral' on the stock. The domestic brokerage said that the company reported a weak set of numbers in Q2 FY26 with a miss on revenue and EBITDA, although PAT beat its estimates.

Also read: Our LIVE blog on stock market updates

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