rewrite this title and make it good for SEOShould you buy/sell/hold SBI Card shares after Q1? Here’s what analysts suggest

SBI Card Share Price Target: SBI Cards and Payment Services reported a 6 per cent year-on-year decline in net profit for Q1 FY26, posting Rs 556 crore compared to Rs 594 crore in the same period last year.

While total revenue rose 12 per cent to Rs 5,035 crore, the performance was marred by higher credit costs and marginal deterioration in asset quality. Gross NPAs inched up to 3.07 per cent from 3.06 per cent a year earlier, while net NPAs rose more notably to 1.42 per cent from 1.11 per cent.

The muted performance has prompted global brokerages to revise their ratings and price targets, with sentiment turning cautious to mixed.

Brokerages on SBI Cards and Payment Services Stock

Morgan Stanley downgraded the stock to ‘underweight’ from ‘overweight, slashing its share price target to Rs 710 from Rs 775. The brokerage cited concerns over the near-term earnings outlook and believes the risk-reward has weakened following the Q1 miss.

While Goldman Sachs has maintained a ‘neutral’ stance and lowered its target price to Rs 963 from Rs 1,006. The brokerage’s revised target reflects tempered expectations for growth and margin recovery, suggesting the upside remains capped in the near term.

Macquarie, too, maintained a Neutral stance with a target price of ₹1,040. It flagged persistent concerns around asset quality, stating that the Q1 PAT miss was driven by higher credit costs, resulting from changes in assumptions under the expected credit loss (ECL) model. On the positive side, Macquarie pointed out that a decline in funding costs may help cushion margins in FY26. Macquarie, too, maintained the neutral stance with a target price of Rs 1,040. It flagged persistent concerns around asset quality, stating that the Q1 PAT miss was driven by higher credit costs, resulting from changes in assumptions under the expected credit loss (ECL) model. On the positive side, Macquarie highlighted that a decline in funding costs may help cushion margins in FY26.

Meanwhile, Jefferies has retained its ‘hold’ rating and reduced its target price to Rs 960 from Rs 975. The brokerage noted that subdued asset growth and margin pressures are key overhangs, and the company will need to show stronger traction in AUM and profitability to justify re-rating.

HSBC maintained a ‘buy’ call on the stock, but cut its target price to Rs 970 from Rs 1,070, stating that the stock is “not panning out as expected.” The firm has reduced its FY26–28 EPS estimates by 5–17 per cent to reflect a slower-than-expected recovery in asset quality and growth. However, HSBC believes there’s still scope for positive surprises in the second half of the fiscal year, particularly in AUM growth and net interest margins, if rate transmission accelerates.

The company’s gross NPAs inched up to 3.07 per cent (vs 3.06 per cent YoY, while net NPAs rose more sharply to 1.42 per cent from 1.11 per cent.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)