Analysts flag top buy picks across 9 Indian financial stocks after Q1 FY27 earnings
Motilal Oswal's review of India's Q1 FY27 results for banks, NBFCs, and microfinance shows sector earnings resilience but clear dispersion: several lenders posted strong profit and loan growth with improving credit costs, while Bank of Baroda was hit by a large one-off legal settlement and softer margins. The mixed readthrough supports selective risk appetite rather than a broad-based re-rating of financials.
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Motilal Oswal reviewed Q1 FY27 results across Indian NBFCs, banks and microfinance lenders, with sector-wide net profit up 37% year on year and loan growth above 24%. It named midsized private banks as its top buy theme, projecting a 35% profit growth rate through FY28. Bank of Baroda’s earnings came under pressure after a one-time ₹56.7 billion legal settlement charge, while CreditAccess Grameen posted a 45% quarter-on-quarter jump in profit.