Bank Mellat, traded on the Tehran Stock Exchange under the ticker Vabmellat (وبملت), closed around 1,284 rials on Tuesday, July 7, 2026, up nearly 3% from the prior session. Drawing on the bank's latest interim financial statement filed with Codal (Iran's official corporate disclosure system), this report calculates Vabmellat's forward P/E under three scenarios, a conservative, a base, and an optimistic case, without any recommendation to buy, sell, or hold the stock.
Background
Per Bank Mellat's management discussion report and six-month financial statements for the period ending late September 2025 (the end of the first half of Iranian fiscal year 1404), earnings per share reached 335 rials, up roughly 36% from the same period a year earlier. The bank's aggregate six-month net profit was reported at close to 79.5 trillion tomans, consistent with the reported EPS given the bank's 2,378,441 million outstanding shares. Bank Mellat's registered capital currently stands at 35.3 trillion tomans. Large listed state banks such as Bank Mellat, given their high share counts and conservative dividend payout policies, typically trade toward the lower end of Tehran Stock Exchange P/E multiples, a pattern that makes reading the "forward" nature of this ratio correctly more important for retail shareholders.
The numbers
| Metric | Value | As of |
|---|
| Closing share price | 1,284 rials | Jul 7, 2026 |
| EPS, H1 of FY1404 | 335 rials | End of Sept 2025 |
| H1 EPS growth, year on year | 36% | End of Sept 2025 |
| Aggregate H1 net profit | ~79.5 trillion tomans | End of Sept 2025 |
| Shares outstanding | 2,378,441 million | Current registered capital |
| Analyst estimate, full FY1404 EPS | 700 to 800 rials | Autumn 2025 estimate |
Drivers
Vabmellat's profit growth in the first half of FY1404 stemmed mainly from expanding fee income, managing the cost of funding deposits, and a modest improvement in the lending margin. Part of the profitability of large state banks like Mellat is also typically recognized in the second half of the fiscal year, when foreign currency assets and investments are revalued at year-end closing, a pattern that has generally made listed banks' second-half profits stronger than their first-half results in recent years.
Outlook
Based on three different assumptions for second-half earnings, Vabmellat's forward P/E at the 1,284-rial share price works out as follows: under a conservative scenario (second-half performance repeating the first half, for full-year EPS near 670 rials), the forward P/E comes to about 1.9x; under a base scenario (full-year EPS of 750 rials, the midpoint of the analyst estimate range), the ratio falls to about 1.7x; and under an optimistic scenario (full-year EPS of 800 rials, the top of the estimate range), the forward P/E drops to about 1.6x. These three figures are purely calculations built on the stated assumptions, not a firm forecast of the bank's profit. A precise, like-for-like comparison of Vabmellat's forward P/E against peer listed banks (such as Tejarat, Saderat, Parsian, Pasargad, Saman, and Eghtesad Novin) could not be verified with current, reliable data at the time of writing, so this report withholds an unverified peer comparison figure rather than publish one.
What to watch
Bank Mellat's audited financial statements for fiscal year 1404 and its annual general meeting, typically held several months after the fiscal year ends in March, are the first events that could update the estimates in this report. Subsequent monthly disclosures filed with Codal will also clarify how second-half earnings are tracking.
This article is for informational and educational purposes only and does not constitute a recommendation to buy, sell, or hold any security. Investing in capital markets carries risk, and the investment decision rests with the investor.
