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Yes Bank will announce its earnings on Saturday, October 18, where the lender is expected to post a strong year-on-year (YoY) rise in profits for the July–September quarter, supported by healthy loan and deposit growth and controlled credit costs. However, the sequential performance is likely to soften as treasury income weakens and margins remain under pressure, according to Nomura, Emkay Global, and ICICI Securities estimates.The lender’s profit after tax (PAT) is projected to rise as much as 41% YoY, while Net Interest Income (NII) is expected to grow modestly by 4–7% YoY, reflecting limited repricing benefits amid rising funding costs.Here are the brokerages' estimates based on 9 key metrics1. PATYes Bank’s PAT is expected to range between Rs 640 crore and Rs 783 crore, marking a 16–41% YoY jump, but a 2–20% QoQ decline due to weak treasury gains and higher provisions.– Emkay: Rs 783 crore (+41.5% YoY, -2.3% QoQ)– ICICI Securities: Rs 764 crore (+38.1% YoY, -4.6% QoQ)– Nomura: Rs 640 crore (+16% YoY, -20% QoQ)2. NIINII is likely to rise modestly in the range of Rs 2,295–Rs 2,350 crore, showing a 4–7% YoY growth. Sequentially, brokerages differ — Nomura and Emkay expect a slight decline, while ICICI Securities sees an improvement.– Nomura: Rs 2,350 crore (+7% YoY, -1% QoQ)– Emkay: Rs 2,309 crore (+5% YoY, -2.6% QoQ)– ICICI Securities: Rs 2,295 crore (+4.3% YoY, +3.2% QoQ)3. NIMMargins are expected to stay muted, with net interest margins (NIMs) estimated at around 2.4%, broadly stable YoY but down sequentially by 6–8 basis points.– Nomura: 2.4% (+2bps YoY, -8bps QoQ)– Emkay: 2.4% (+4bps YoY, -6bps QoQ)4. PPOPPre-Provision Operating Profit (PPOP) is projected between Rs 1,128 crore and Rs 1,294 crore, up 15–33% YoY but down 5–17% QoQ.– Emkay: Rs 1,294 crore (+32.7% YoY, -4.7% QoQ)– Nomura: Rs 1,160 crore (+19% YoY, -15% QoQ)– ICICI Securities: Rs 1,128 crore (+15.7% YoY, -16.9% QoQ)Brokerages attributed the sequential decline to lower treasury income and higher operating costs.5. ProvisionsProvisions are expected to remain stable QoQ, with a marginal YoY uptick, reflecting manageable asset quality.– Nomura: Rs 300 crore (+1% YoY, +6% QoQ)– Emkay expects recoveries and contained slippages to limit incremental provisioning pressure.6. LoansLoan growth continues to show momentum, expected to expand 7% YoY and 4% QoQ, led by steady traction in retail and MSME segments.– Nomura: Rs 2.50 lakh crore (+7% YoY, +4% QoQ)– ICICI Securities highlighted that slippages are likely to moderate sequentially on a high base, while overall credit demand remains stable.7. DepositsDeposits are likely to register 7% YoY and 8% QoQ growth, outpacing credit expansion and improving funding stability.– Nomura: Rs 2.97 lakh crore (+7% YoY, +8% QoQ)The bank’s deposit growth trajectory remains encouraging, supported by retail deposit mobilisation and improving customer confidence.8. Credit cost– Nomura: 0.5% (-6bps YoY, flat QoQ)Also read: Gold prices rally to new high past Rs 1.3 lakh ahead of Dhanteras, silver follows suit9. Key monitorablesNomura said the credit cost remains contained at 0.5%, but warned that weak treasury income could weigh on PAT, while Emkay expects “recoveries from ARC sales to cushion earnings.(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Shares of food delivery firm Eternal slid 4.2% to their day’s low of Rs 333.75 on the BSE on Friday, October 17, after the company reported a sharp 63% year-on-year (YoY) decline in its consolidated net profit for the September quarter.The net profit stood at Rs 65 crore in Q2 FY26, down from Rs 176 crore in the same period last year. The profit after tax (PAT) attributable to the owners of the parent also missed analyst expectations, which were pegged at Rs 108 crore.Despite the YoY decline in profitability, the company delivered a robust performance in terms of revenue. Revenue from operations jumped 183% YoY to Rs 13,590 crore, compared to Rs 4,799 crore in the corresponding quarter of the previous financial year.This led to various brokerage firms raising the stock’s target price to as high as Rs 415.On a sequential basis, Eternal posted a 160% increase in net profit compared to Rs 25 crore reported in Q1 FY26. The topline also showed strong sequential momentum, rising 90% from Rs 7,167 crore in the April–June quarter to Rs 13,590 crore in Q2.Here’s what brokerage firms are saying:Elara Capital: Buy| Target price: Rs 415Elara has maintained a "Buy" rating on Eternal with a target price of Rs 415.In the food delivery segment, Zomato’s November order volume grew 13.8% year-on-year (YoY), while gross order value rose 18.6%, supported by a record 24.1 million users. Margins improved to 5.3%, though they were tempered by higher discounts. In Blinkit’s quick commerce business, order volume surged 137% YoY, with 272 new stores added and a 134% increase in users.Notably, 80% of the business shifted to the Instant Purchase (IP) model, boosting margins by approximately 100 basis points. Eternal plans to expand to 2,100 stores by December 2025 and 3,000 by FY27, with over 60% of new additions concentrated in top cities to support same-store sales growth.Blinkit’s EBITDA losses remained flat quarter-on-quarter, and the segment is on track to break even by the end of FY26. Elara has also raised its forecasts, projecting 130–190% growth in sales and a 25–45% rise in EBITDA for FY27–28, driven by improved profitability from the IP model.Morgan Stanley; Overweight| Target price: Rs 330Morgan Stanley maintained an "Overweight" rating on Eternal with a target price of Rs 330.The company’s adjusted revenue grew 172% YoY, exceeding estimates by 15%, led by a strong Quick Commerce (QC) contribution. However, adjusted EBITDA came in below estimates due to higher segment losses.Food delivery saw 13.8% YoY growth, with EBITDA beating expectations, though GST on 25% of orders impacted growth. QC revenue surged 137% YoY, but losses widened due to aggressive store expansion and marketing. Eternal added 272 new QC stores and revised its expansion target to 2,100 stores by Dec 2025 and 3,000 by Mar 2027.GST-related demand is expected to normalize in Q3FY26, with margin gains from the Instant Purchase mix likely over the next 4–6 quarters.Goldman Sachs: Buy| Target price: Rs 390Goldman Sachs has maintained a “Buy” rating on Eternal, raising the target price to Rs 390 from Rs 360.The brokerage noted that growth and margins for both the Food Delivery and Blinkit (Quick Commerce) segments fell short of its expectations. However, margins in food delivery remained broadly in line.The increase in store additions and higher user acquisition spending led Goldman Sachs to cut its FY26–27 EBITDA estimates by 10–30%, although the long-term outlook remains intact. Blinkit’s November estimates were raised by up to 15%, driven by a strong store rollout and solid product–market fit.Goldman Sachs also observed that the competitive landscape remains favorable, enabling market share gains in Quick Commerce. Following the Q2 results, its overall estimates for November rose by approximately 8%, while the steady-state margin outlook remained unchanged.Also read: Reliance Industries Q2 results preview: O2C, Jio to power 11% profit growth; retail seen lagging(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)