RBL Bank shares tumble despite profit surge.

RBL Bank shares tumble despite profit surge. The lender reported net profit tripling to Rs 230 crore in Q4 FY26, yet investors sold off the stock by 5% on Monday. The culprit appears to be margin compression, with net interest margin declining to 4.41%, the lowest in five quarters, down from 4.63% previously. While net interest income grew 7% year-over-year and operating profit rose 11%, analysts flagged weak growth and elevated credit card slippages as concerns. Asset quality did improve with net NPA ratios falling, but cost-to-income ratio remains elevated, limiting return on assets expansion. Elara Capital maintained an accumulate rating with a 7% upside target, noting the bank sits at an inflection point with recovery expected to be gradual as credit cost volatility persists. The stock has still gained 64% over one year despite recent weakness.