Kotak Mahindra Bank (KOTAKBANK) Q3 25/26 earnings summary

Executive summary

• Net advances grew 16% year-over-year, with consistent 4% quarterly growth over the last three quarters.

• Consolidated PAT for Q3FY26 rose 5% year-over-year to ₹4,924 crore, with 10% sequential growth from Q2FY26.

• Customer assets and deposits both grew 15% year-over-year, reflecting strong balance sheet expansion.

• Subsidiaries contributed 30% of consolidated profits, up 11% year-over-year.

• Results reflect the impact of the new Labour Codes, with incremental provisions recognized under employee costs.

Financial highlights

• Balance sheet grew 15% year-over-year; net advances up 16% year-over-year.

• Q3 consolidated total income was ₹27,850.79 crore, up from ₹23,945.79 crore in Q3 FY25.

• Q3 standalone PAT at ₹3,446.14 crore; consolidated PAT at ₹4,924 crore, up 5% year-over-year.

• Exceptional gain of ₹3,803.40 crore from the sale of a 70% stake in the general insurance subsidiary.

• Book value per share rose to ₹176, a 15% increase year-over-year.

Outlook and guidance

• Expect moderate NIM improvement in Q4 due to full impact of CRR cut and typical seasonal effects.

• The group is focused on scaling digital platforms and expanding customer segments, with continued investment in technology and product innovation.

• Emphasis on inclusive and responsible growth, with a strong ESG framework and ongoing community initiatives.

• The group will reassess the impact of the new Labour Codes based on final rules and industry practices.