SBI Share Price Up 6.9% at Rs. 1,140 on Strong Q3 FY26 Results

Overview

• SBI share price jumped nearly 7% after strong Q3 FY26 earnings surprised the market.

• The PSU bank’s net profit rose 24.5% as asset quality improved and margins stayed stable.

• Brokerages like Motilal Oswal raised price targets to Rs. 1,300 while Emkay Global revised its target to Rs. 1,225.

State Bank of India (SBI) share price climbed nearly 7% on February 9. The surge came after the lender reported stronger-than-expected Q3 FY26 earnings. The stock emerged as one of the top gainers on the Indian share market, reflecting renewed confidence in large PSU banks. Here’s an in-depth analysis of the SBI share price based on Moneycontrol data. 

Current Market Performance

SBI share price was at Rs. 1,140, up 6.90% from the previous close of Rs. 1,066.40 at press time. The stock opened at Rs. 1,120 and touched an intraday high of Rs. 1,141, a fresh 52-week and all-time high. Over 2.8 crore SBI shares changed hands, almost three times the 20-day average.

SBI share price chart on Moneycontrol showed gains of 6.88% during the afternoon trade: 

SBI Q3 Results Beat Market Expectations

The sharp move in SBI stock followed a solid earnings performance in the December quarter. The bank reported a net profit of Rs. 21,030 crore. This is a 24.5% year-on-year increase and beats analyst expectations by a wide margin.

Loan growth was good at 15.6% YoY, while net interest margins stayed stable at 2.99%. The bank’s asset quality continued to improve. Gross NPAs (Non Performing Assets) declined to 1.57% from 2.07% in the same period last year. This improvement reinforced confidence around the bank’s risk profile and balance sheet strength.

More Than Just Interest Income

Earnings were further supported by one-time income streams. A dividend of Rs. 2,200 crore from SBI Mutual Fund and treasury gains of Rs. 3,280 crore also boosted investor confidence in the bank’s long term profitability. SBI expects domestic net interest margins to stay above 3% and guides for a cost-to-income ratio of around 50%, indicating sustained operating efficiency going forward.

Brokerages Upgrades

Following the results, leading brokerages upgraded their outlook on the stock. HDFC Securities reiterated its ‘Buy’ rating and raised its target price to Rs. 1,200. Hence, valuing SBI at 1.5x FY27 adjusted book value.

Motilal Oswal increased its target to Rs. 1,300, citing improved credit growth guidance of 13–15% for FY26. Emkay Global revised its target to Rs. 1,225. Meanwhile JM Financial set a price target of Rs. 1,250.

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Final Thoughts

With a market cap now crossing Rs. 10.5 lakh crore, SBI has become the unchallenged leader in the PSU banking sector. Even with a 54% rise over the last year, the stock’s valuation is reasonable, especially when you consider its improved profit margins and clean books.

SBI share price is trading at a TTM P/E of 13.02 and a price-to-book ratio of 2.29, slightly above sector averages but supported by consistent earnings growth. Analysts continue to view SBI as a top PSU bank pick amid a broader recovery in financial stocks. For long-term players, today’s hike isn’t a temporary peak, but rather a new base for the next leg of growth.

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FAQs

1. Why did SBI share price rise today?

SBI shares rose sharply after the bank posted stronger-than-expected Q3 FY26 results. Profit growth, lower bad loans, and stable net interest margins boosted investor confidence. The stock also benefited from heavy buying in PSU banks, strong trading volumes, and positive management guidance, which together triggered a broad-based rally in SBI shares.

2. How were SBI Q3 results?

SBI reported a net profit of over Rs. 21,000 crore in Q3 FY26, a year-on-year growth of nearly 25%. Loan growth was healthy, margins stayed stable, and gross NPAs declined further. These results beat analyst expectations and showed that the bank’s core business is strong despite a challenging global environment.

3. What role did asset quality play in SBI stock rally?

Improving asset quality was a key reason behind the rally. SBI’s gross NPA ratio fell to 1.57%, showing better control over bad loans. Lower NPAs reduce credit risk and improve profitability over time. This reassured investors that the bank’s balance sheet is strengthening, supporting long-term growth prospects.

4. What are analysts saying on SBI stock?

Most brokerages are bullish on SBI after the Q3 results, citing strong earnings visibility and better operating efficiency. Motilal Oswal increased its target to Rs. 1,300. Emkay Global revised its target to Rs. 1,225 and JM Financial set a price target of Rs. 1,250. Analysts continue to rate SBI as a Buy or Outperform stock, making it one of the preferred picks among PSU banks in the current market environment.

5. Is SBI stock a good investment?

Analysts believe SBI are attractive due to steady earnings growth and improving fundamentals. While valuations are slightly above sector averages, strong return ratios, stable margins, and long-term growth visibility support the stock. However, investors should watch broader market trends and global risks before taking fresh positions.