The share price of State Bank of India (SBI) is in the spotlight. The stock surged nearly 6%, emerging as the top gainer on the Nifty. The sharp surge in the share price came after the country’s largest lender reported a strong set of quarterly results in Q3. This stock soared to a record high of around Rs 1,137. With this move, SBI has now climbed more than 66% from its 52-week low.
Almost all major brokerage houses tracking the stock are on the same page, maintaining a ‘Buy’ call and indicating an upside potential of up to 22% from current levels.
Let’s take a look at the brokerages say on this stock and the rationale behind it –
Motilal Oswal on SBI: ‘Buy’
Motilal Oswal has reiterated a ‘Buy’ rating on the stock with a target price of Rs 1,300. This implies an upside of about 22%.
According to the brokerage report, “SBI reported a strong all-round performance, led by robust business growth, margin expansion and healthy asset quality.”
The brokerage added that “credit growth was healthy at 15.6% year-on-year, while a robust credit pipeline is expected to support a healthy outlook going forward.”
It also highlighted that management has raised the credit growth guidance and expects net interest margins to stay above 3% over the medium term.
Nuvama on SBI: ‘Buy’
Nuvama has also maintained a ‘Buy’ call and raised its target price to Rs 1,250, pointing to solid core earnings. This indicates an upside potential of 17% from the current market price
As per the brokerage report, “SBI posted strong core earnings in Q3 with a solid loan growth, strong net interest income growth and lower-than-expected operating expenses.”
The brokerage noted that SBI’s performance has been better than private banks for the third consecutive quarter, supported by stable margins and higher loan growth.
It also stated that “we view SBI’s performance in Q3FY26 as the best among large banks.”
Nomura on SBI: ‘Buy’
Nomura has set a target price of Rs 1,235, implying nearly 16% upside. According to the brokerage report, “SBI’s Q3FY26 performance was strong across margins, growth and asset quality.”
Nomura highlighted that core profitability remained superior to peers and added that “loan growth of 16% year-on-year outpaced peers despite the large base.”
However, it also cautioned that a part of the re-rating has already played out, and future gains are likely to be driven more by earnings growth than valuation expansion.
JM Financial on SBI: ‘Buy’
JM Financial has also retained its ‘Buy’ rating with a target price of Rs 1,250. This translates to an upside potential of 17% from the current market price
According to the brokerage report, “SBI delivered a strong Q3FY26 performance with healthy profit growth, also aided by various one-offs.”
The brokerage emphasised asset quality improvement, stating that “gross and net non-performing assets improved to some of the best levels in multiple years.”
It also pointed out that strong provision buffers provide downside protection and support earnings stability over the cycle.
SBI Q3FY26 performance recap
SBI’s Q3 performance stood out in a market where banking results have been mixed. The public sector lender reported its highest-ever standalone quarterly profit, with net profit rising over 24% year-on-year for Q3FY26. Loan growth also remained strong. This also helped SBI outperform several private sector peers.
Conclusion
Overall, brokerages broadly agree that SBI’s improving asset quality, steady margins and strong loan growth provide comfort.