KOTAKBANK

Q1 Results: Net Profit Climbs 26% to ₹4,123 Crore, Outpaces Estimates; Asset Quality Improves

Synopsis:

posted a healthy set of June quarter earnings, with standalone net profit rising 25.6% year-on-year to ₹4,122.96 crore, exceeding market estimates. The lender also reported improved asset quality, although net interest income (NII) came in slightly below expectations. Standalone profit increased to ₹4,122.96 crore in Q1 FY27 from ₹3,282 crore in the corresponding quarter last year, beating analysts' forecast of ₹3,910 crore. Net interest income (NII) rose 9% year-on-year to ₹7,928.43 crore from ₹7,259 crore a year ago. However, the figure fell short of the estimated ₹8,058 crore. Meanwhile, the bank's net interest margin (NIM) moderated to 4.53% during the quarter from 4.65% in the year-ago period. The bank's asset quality showed further improvement, with the gross non-performing asset (GNPA) ratio easing to 1.18% as of June 30, 2026, compared with 1.48% a year earlier. The net NPA ratio also improved, indicating continued strength in the lender's loan book. Despite a marginal miss on NII, k Mahindra Bank delivered better-than-expected profitability, aided by steady business growth and a healthier asset quality profile. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.