Bank of Baroda shares jump 5% after Q2 net profit rises 36%. What Nomura and other brokerages saying?

It earned Rs 1,340 crore from selling a partial stake in NSE last month. The bank’s net interest income meanwhile rose 9% YoY to Rs 13,026 crore during the quarter under review. The company's shares rose to Rs 250 apiece on Monday morning.The profit growth was aided by non-interest income almost doubling to Rs 6,881 crore during Q2 FY27, from Rs 3,515 crore in the year-ago period. Net interest margin, however, dropped to 2.74% from 2.96% a year earlier.

The latest target price implies 13% upside potential.Live EventsThe brokerage said Bank of Baroda reported strong Q2 numbers, with the net profit beating its estimate by 12%. The NII was also 4% higher than Nomura’s estimate. The company’s management raised FY27 credit growth guidance to 13-15% and deposit growth guidance to 11-13%. It retained NIM guidance of 2.75-2.95%, and expects to reach the upper end in Q3 and Q4 as the repo rate hike passes through to the 38% repo-linked book.Nomura raised FY27 and FY28 EPS estimates by 14% and 5% respectively on higher treasury income and lower provisions in FY27 and higher NII in FY28, and now builds in FY27 loan growth of 16%.

It expects RoA of 0.9% and RoE of 13-14% over FY27-28.Systematix on Bank of Baroda share priceSystematix Institutional Equities maintained its ‘Buy’ rating on the shares of Bank of Baroda with a target price of Rs 285 apiece. The domestic brokerage said the company’s net profit was nearly 28% above its estimate.Asset quality remained robust, as annualised gross slippage ratio improved by 18 bps QoQ to 0.8%.

The GNPA and NNPA ratios improved by 21 bps and 13 bps QoQ, respectively. The bank reported operating profit of Rs 114.3 billion, supported by gains from the NSE stake sale and revaluation, the brokerage pointed out.Dolat Capital on Bank of Baroda share priceDolat Capital maintained its ‘Reduce’ rating on Bank of Baroda stock with a target price of Rs 260 apiece, implying 9% upside potential. The domestic brokerage said the company’s profit was in line with estimates.Despite factoring in higher NIMs post rate hike, they are lower than peers, Dolat Capital said.

This, coupled with the impact of upcoming provisions from ECL norms, means the brokerage expects ROAs to remain at 0.9% levels. Further, its loan growth projections of 12% over FY27 and FY28 are lower than banking system growth expectations.03 lakh croreBank of Baroda share priceBank of Baroda shares have gained around 3% in one week and more than 3% in a month. Shares of the lender have, however, fallen nearly 21% in 2026 so far, as multiple headwinds impacted financial stocks.The stock is down more than 14% in the past one year.

In the longer term, Bank of Baroda shares have jumped 19% in three years and delivered multibagger returns of more than 133% in five years.Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication.

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