Kotak Mahindra Bank (KOTAKBANK) Q1 25/26 earnings summary

Executive summary

• Consolidated PAT for Q1FY26 was ₹4,472 crore, with ROE at 11.13% and ROA at 2.03%.

• Book value per share rose 17% YoY to ₹829; Group AUM increased 18% YoY to ₹750,143 crore.

• Bank PAT at ₹3,282 crore, with average advances up 14% YoY and NIM at 4.65%.

• Subsidiaries showed strong growth: Kotak AMC and TC PAT up 86% YoY, Kotak Mahindra Prime PAT up 17% YoY.

• Results reflect the impact of the divestment of a 70% stake in the general insurance subsidiary, now an associate, with a significant exceptional gain.

Financial highlights

• Consolidated total income for Q1 FY26 was ₹26,703.92 crore, up from ₹25,075.87 crore in Q1 FY25.

• Gross NPA at 1.48%, net NPA at 0.34%, provision coverage ratio at 77%.

• Credit costs for the quarter at 90 bps, with slippages rising to INR 1,812 crore.

• Group net worth at ₹164,903 crore; consolidated ROE at 11.1%.

• Operating profit (consolidated) before provisions and contingencies was ₹7,374.57 crore, up from ₹6,782.03 crore YoY.

Outlook and guidance

• NIM expected to stabilize over the year as deposit repricing flows through.

• Credit costs in MFI and retail CV have peaked; improvement expected in H2.

• Focus on scaling digital offerings, ESG initiatives, and expanding customer reach.

• Unsecured retail asset share targeted at 15% over time, with MFI capped at 3-4% of total assets.

• Asset quality in SME and business banking remains stable, but closely monitored.