DCB Bank shares surge 23% in two days post Q2 earnings; brokerages remain bullish

Shares of DCB Bank Ltd continued their strong momentum for the second consecutive session on Tuesday. The stock rallied 12.55 per cent during the day, hitting a 52-week high of Rs 162.70, before settling 9.65 per cent higher at Rs 158.50. This takes the two-day gain to 23.06 per cent.

The private sector lender reported an 18 per cent rise in profit after tax (PAT) to Rs 184 crore in Q2 FY26, up from Rs 155 crore in the same quarter last year.

Advances increased by 19 per cent year-on-year (YoY). Gross non-performing assets (GNPAs) stood at 2.91 per cent as of September 30, 2025, while net NPAs were at 1.21 per cent. Net interest income rose 17 per cent to Rs 596 crore against Rs 509 crore a year ago.

A few domestic brokerages maintained a positive outlook on the stock. SMIFS noted that DCB is well-positioned to achieve its FY27 guidance of 1 per cent ROA and 14 per cent ROE, supported by steady loan growth, net interest margin expansion, fee income traction, productivity gains and stable asset quality.

The brokerage highlighted the stock’s attractive valuation at roughly 0.6x FY27E price-to-book and reiterated a ‘BUY’ rating.

Motilal Oswal Financial Services (MOFSL) also retained its ‘BUY’ stance with a target of Rs 165.

The brokerage pointed out healthy business growth, with particular emphasis on gold loans and co-lending. It observed improved asset quality, moderating slippages and expected credit costs to remain below 45 basis points (bps) for FY26. MOFSL revised its earnings estimates for FY27 and projected an ROA of 1.01 per cent and ROE of 15.3 per cent for the year.

Meanwhile, the stock market remained closed on Wednesday in observance of ‘Diwali Balipratipada’.