AU Small Finance Bank Limited (AUBANK.NS) stock analysis

In our weekly check, AU Small Finance Bank Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 7.

About AU Small Finance Bank Limited

AU Small Finance Bank Limited is a Financial Services company (Banks - Regional) based in India, listed on NSE as AUBANK.NS.

What our checks show for AUBANK.NS

Red flags

• The gross margin fell by 8.7 points, to 52.4%: costs are rising faster than prices.
• Profits not backed by cash
• Analysts expect revenue to shrink about 3.1% a year.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 2%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 3 points over 5 years, to 13.4%: the company keeps less of each sale as profit.
• Free cash flow is only 0% of revenue.
• The share count grew by 11.7% in 2 years: each shareholder owns a smaller slice.

Strengths

• Analysts expect earnings per share to grow about 24.7% a year over the next years.
• Analysts expect the net margin to improve by 11.9 points from today's 13.4%.
• Revenue grew 36.6% a year over the last 3 years.
• Earnings per share grew 24.5% a year over the last 3 years.
• Net profit grew 30.2% a year over the last 3 years.

Next earnings report: 2027-01-28

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Questions

What grade does AU Small Finance Bank Limited (AUBANK.NS) have?

In our weekly check, AU Small Finance Bank Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AUBANK.NS stock?

This week's biggest flags for AU Small Finance Bank Limited: Gross margin falling, Profits not backed by cash, Weak revenue forecast. In total 10 of 24 checks show a warning or a red flag.

What does AU Small Finance Bank Limited do?

AU Small Finance Bank Limited is a Financial Services company (Banks - Regional) based in India, listed on NSE as AUBANK.NS.

When does AU Small Finance Bank Limited report earnings next?

The next earnings report is expected on 2027-01-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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