Kotak Mahindra Bank (KOTAKBANK) Q4 25/26 earnings summary

Executive summary

• Delivered 16.2% YoY growth in average net advances and 14.9% YoY growth in average deposits, with strong performance in SME and mortgage segments.

• Q4 PAT up 13% YoY for the bank and 6% YoY on a consolidated basis; book value per share grew 15% YoY to ₹182.

• Consolidated and standalone audited financial results for the year ended March 31, 2026, were approved with unmodified audit opinions from joint statutory auditors.

• Subsidiaries contributed 23% of consolidated Q4 profits, despite capital market headwinds.

• Customer assets at ₹616,219 crore (+15% YoY) and AUM at ₹747,613 crore (+12% YoY) as of March 2026.

Financial highlights

• Standalone balance sheet grew 13% YoY; net advances up 16% YoY; SME and mortgage advances grew over 18% YoY.

• Q4 NIM at 4.67% (4.54% adjusted for days); full-year NIM at 4.6% vs 4.96% last year.

• Q4 consolidated PAT at ₹5,238 crore, up 6% YoY; FY26 consolidated PAT was ₹19,103 crore, nearly flat YoY excluding one-time gains.

• CASA ratio at 43.3% as of March 2026; cost-to-income ratio for the bank was 46.7% in Q4FY26.

• Consolidated total income for FY26 was ₹107,563.70 crore, up from ₹103,076.10 crore YoY.

Outlook and guidance

• NIM expected to decline gradually in FY 2027, mainly due to higher term deposit rates, but at a slower pace than FY 2026.

• Credit costs expected to remain stable or improve, with focus on collection efficiency and disciplined underwriting.

• Continued investment in technology and digital platforms to drive cost efficiencies and operating leverage.

• The Board proposed a dividend of ₹0.65 per share (face value ₹1) for FY26, subject to shareholder approval.

• Watchful stance on global geopolitical risks and potential impact of El Niño on rural income.