Reliance Industries, RBL Bank, DCB Bank Q4 Results Review: HDFC Securities

RBL Bank Ltd.’s Q4 FY25 earnings were muted, owing to sustained accelerated provisioning in the MFI and credit card portfolios as stress levels continued to stay elevated. Loan growth moderated to 10% YoY for FY25 (FY24: 20%) with de-growth in unsecured segments..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Reliance Industries - Decent show by Jio platform but O2C still down YoY Our Add rating on Reliance Industries Ltd. with a price target of Rs 1,655/share is premised on -Ebitda growth in the digital business, driven by improvement in average revenue per user, subscriber addition, and new revenue streams;recovery in the O2C margin; andpotential for further value unlocking in the digital and retail businesses. RIL’s consolidated Q4 FY25 Ebitda stood at Rs 438 billion (+3.1% YoY, +0.1% QoQ) and APAT at Rs 194 billion (+2.4% YoY; +4.7% QoQ), below our estimates, due to lower gas production and weaker-than expected transportation fuel cracks..RBL Bank - Accelerated provisioning; portfolio stability still elusive RBL Bank Ltd.’s Q4 FY25 earnings were muted, owing to sustained accelerated provisioning in the MFI and credit card portfolios as stress levels continued to stay elevated. Loan growth moderated to 10% YoY for FY25 (FY24: 20%) with de-growth in unsecured segments. Deposit growth (7% YoY) was sluggish with the CASA ratio improving to 34.1% (+135bps QoQ) on account of seasonality in current account balances (+22% QoQ). While the management has guided for normalisation of credit costs in H2 FY26, we argue that stability in earnings shall be protracted, given significant portion of the loan book remains unsecured (28%) adding volatility to earnings, while the bank is still building out its secured retail business. We raise our FY26/27E earnings estimates by 1%-2%, factoring in downward normalisation of credit costs, which is offset by margin pressures owing to a rate cut cycle and higher secured asset mix. We maintain Reduce with a revised target price of Rs 165 (0.6x Mar-27 adjusted book value per share)..Click on the attachment to read the full report:.Reliance Industries Q4 Results: Margin Contracts Most In 10 Quarters.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Reliance Industries, RBL Bank, DCB Bank Q4 Results Review: HDFC Securities

The brokerage recommends 'Add' rating to Reliance Industries, DCB Bank and 'Reduce' rating to RBL Bank - know why

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP