Kotak Mahindra Bank Q2 Results Preview: Moderate Profit, Strong Loan Growth; Advances Seen Rising

On Saturday, October 25, Kotak Mahindra Bank is scheduled to release its financial results for the second quarter of the fiscal year 2026 (2QFY26). According to several brokerages, the bank's Q2FY26E performance shows steady operational momentum with a marginal decline in net profit, but loan growth is seen as a robust surge.

Kotak Mahindra Bank Q2 Results Preview By ICICI Securities

According to estimates, the bank's Net Interest Income (NII) in Q2FY26E would be Rs 7,284 Cr, representing a modest 0.3% QoQ and 3.8% YoY growth. Pre-Provision Operating Profit (PPOP) is expected to reach Rs 5,292.8 Cr, representing a 3.8% YoY growth despite a 4.9% sequential fall.

Profit After Tax (PAT) is projected to be Rs 3,226 Cr, representing a 1.7% sequential loss and a 3.5% YoY decline, while Profit Before Tax (PBT) is predicted to be Rs 4,312.8 Cr, down 1% QoQ and 2.8% YoY. Advances are expected to reach Rs 4,62,646 crore, showing a robust 15.8% YoY and 4% QoQ growth.

The bank's Net Interest Margin (NIM) is likely to moderate slightly to 4.61%, down by 4 basis points QoQ and 30 basis points YoY. It is anticipated that slippages will drop precipitously to Rs 1,400 crore, which would be a noteworthy 22.7% QoQ and 25.3% YoY drop.

Kotak Mahindra Bank Q2 Results Preview By Prabhudas Lilladher

The bank's Q2FY26E performance shows consistent operating progress. Compared to Q2FY25's Rs 7,019.6 crore, Net Interest Income (NII) is likely to rise 4.2% YoY to Rs 7,316.2 crore. It also showed a modest 0.8% sequential gain from Q1FY26's Rs 7,259.3 crore. Pre-Provision Operating Profit (PPOP) is likely to fall 4.9% QoQ but may rise 3.8% YoY to Rs 5,292.1 Cr. At Rs 863.9 crore, provisions were up 30.8% YoY but fell 28.5% sequentially.

Profit After Tax (PAT) likely to stand at Rs 3,321.1 crore, marginally down 0.7% YoY but up 1.2% QoQ. On the balance sheet, margins slipped 51 basis points YoY to 4.49%, while loans increased 15.8% YoY to Rs 4,62,600 crore. Asset quality was steady, with credit cost increasing mildly by 9 basis points YoY to 0.75% but improving 34 basis points sequentially, and gross non-performing assets (NPA) improving marginally to 1.45% from 1.49% last year.

Kotak Mahindra Bank Q2 Results Preview By InCred Equities - InCred Group

The net interest income (NII) for the bank in the second quarter of fiscal year 2026 (2QFY26) may reach Rs 7,200 crore, indicating a 3.20% year-on-year (YoY) gain but a 0.20% quarter-on-quarter (QoQ) drop. At Rs 5,300 crore, the Pre-Provision Operating Profit (PPOP) increased by 4.40% YoY but dropped by 4.30% QoQ.

While advances may grow strongly to Rs 4,62,600 crore, representing a 15.80% YoY and 4.00% QoQ rise, the profit after tax (PAT) is to remain flat at Rs 3,300 crore. Meanwhile, the margin constricted by 36 basis points (bp) YoY to 4.55%. Additionally, credit costs came in at 85 bp, up 17 bp YoY but down 25 bp sequentially.

Kotak Mahindra Bank Q2 Results Preview By Axis Securities

The bank is expected to generate Net Interest Income (NII) of Rs 7,310 crore for Q2FY26E (the second quarter of the fiscal year 2026 estimate), which would indicate a 4.10% YoY rise and a 0.70% QoQ increase. The expected non-interest income is Rs 3,033 crore, indicating a minor QoQ fall of 1.50% but a robust YoY rise of 13.00%. Pre-Provision Operating Profit (PPOP) is expected to be Rs 5,409 crore, a 2.80% QoQ decline but a 6.10% YoY growth.

Although it is a 13.00% QoQ drop, the provision has increased significantly, projected at Rs 1,050 crore, representing a 59.00% YoY gain. At Rs 3,282 crore, the net profit is predicted to be steady QoQ, representing a slight YoY fall of 1.90%. Accordingly, it is anticipated that the earnings per share (EPS) would be steady on a quarterly basis at Rs 16.5, a YoY decline of 1.90% from Rs 16.8 in Q2FY25.

Kotak Mahindra Bank Target Price

"Lifting of RBI embargo could lead to better loan and deposit growth; bank also plans to increase share of unsecured loans from 10.5% to 15% which would cushion NIM. Core earnings growth is expected to be 23.2% YoY in FY27E with core RoA/RoE of 1.8%/11.0%. We keep multiple at 2.4x on Mar'27 core ABV. Retain 'BUY' with TP at Rs2,350," commented the research analysts of Prabhudas Lilladher.

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