Kotak Mahindra Bank Q2 Results Preview: Analysts Anticipate Steady Performance Amid Strong Loan Growth

Kotak Mahindra Bank is set to announce its financial results for the second quarter of fiscal year 2026 on October 25. Analysts expect steady operational performance with a slight dip in net profit, but loan growth is anticipated to be strong. The bank's performance is being closely watched by investors and analysts alike.

ICICI Securities predicts the bank's Net Interest Income (NII) for Q2FY26E to be Rs 7,284 crore, showing a slight increase of 0.3% quarter-on-quarter (QoQ) and 3.8% year-on-year (YoY). The Pre-Provision Operating Profit (PPOP) is expected to reach Rs 5,292.8 crore, marking a 3.8% YoY rise despite a 4.9% sequential decline.

Profit After Tax (PAT) is projected at Rs 3,226 crore, reflecting a 1.7% QoQ decrease and a 3.5% YoY drop. Meanwhile, Profit Before Tax (PBT) is estimated at Rs 4,312.8 crore, down by 1% QoQ and 2.8% YoY. Advances are anticipated to grow to Rs 4,62,646 crore, indicating a robust increase of 15.8% YoY and 4% QoQ.

Prabhudas Lilladher forecasts that the bank's NII will rise by 4.2% YoY to Rs 7,316.2 crore from Rs 7,019.6 crore in Q2FY25. This also represents a modest sequential gain of 0.8% from Q1FY26's Rs 7,259.3 crore. PPOP is expected to fall by 4.9% QoQ but increase by 3.8% YoY to Rs 5,292.1 crore.

Provisions are projected at Rs 863.9 crore, up by 30.8% YoY but down by 28.5% sequentially. PAT is likely to be Rs 3,321.1 crore, slightly down by 0.7% YoY but up by 1.2% QoQ. Margins slipped by 51 basis points YoY to 4.49%, while loans increased by 15.8% YoY to Rs 4,62,600 crore.

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

InCred Equities anticipates the bank's NII for Q2FY26 to reach Rs 7,200 crore, reflecting a YoY gain of 3.20% but a QoQ decline of 0.20%. PPOP is expected at Rs 5,300 crore, showing a YoY increase of 4.40%, though it dropped by 4.30% QoQ.

Advances are projected to grow strongly to Rs 4,62,600 crore with a YoY rise of 15.80% and a QoQ increase of 4%. PAT is expected to remain stable at Rs 3,300 crore while margins contracted by 36 basis points YoY to stand at 4.55%. Credit costs were recorded at 85 basis points.

Kotak Mahindra Bank Q2 Results Preview By Axis Securities

Axis Securities estimates the bank's NII for Q2FY26E at Rs 7,310 crore, indicating a YoY rise of 4.10% and a QoQ increase of 0.70%. Non-interest income is expected at Rs 3,033 crore, showing a minor QoQ fall of 1.50%, but a strong YoY rise of 13%. PPOP is projected at Rs 5,409 crore.

Provisions are anticipated at Rs 1,050 crore, marking a significant YoY gain of 59%, despite a QoQ drop of 13%. Net profit is predicted at Rs 3,282 crore with steady QoQ performance and a slight YoY fall of about 1.90%. Earnings per share (EPS) are expected to remain stable on a quarterly basis.

Kotak Mahindra Bank Target Price

The research analysts from Prabhudas Lilladher commented: "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."

They further added that core earnings growth is expected to be around "23.2% YoY in FY27E with core RoA/RoE of approximately "1.8%/11%. We keep multiple at "2.4x on Mar'27 core ABV." They maintain their 'BUY' recommendation with a target price set at "Rs2,350."

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