Kotak Mahindra Bank Q1 Preview: PAT seen falling 26% YoY, NII growth muted

Private sector lender Kotak Mahindra Bank is expected to report a 26% year-on-year decline in net profit for the quarter ended June 2025 (Q1FY26), according to the average of estimates from five brokerages. Net interest income (NII) is likely to register a modest 7% YoY rise, reflecting margin pressures and muted growth in interest income.

Loan growth seen healthy; margins under pressure

Brokerages expect the bank’s loan book to expand 12–13% YoY, supported by steady disbursement momentum.


According to Nuvama, loan growth is pegged at 12.4% YoY and 2.7% QoQ, while YES Securities forecasts around 2.5% sequential growth.

Phillip Capital anticipates 4.2% QoQ loan growth and 2.8% QoQ deposit growth, indicating healthy traction in core banking operations.

However, margins may remain under pressure. Nuvama expects NII to rise just 5.7% YoY (and decline 0.7% QoQ), while YES Securities flags a sequential dip in net interest margin (NIM) due to a decline in yields on advances.

Motilal Oswal also expects margins to stay subdued, with a slight deterioration in asset quality.

Slippages stable; provisions may fall

On the asset quality front, YES Securities expects slippages to remain broadly stable, with provisions declining sequentially.

Phillip Capital believes credit costs will begin to normalise, supporting bottom-line resilience despite operational pressures. Motilal notes that cost ratios are expected to remain under control, even as overall business growth remains healthy.

Investors will closely watch management commentary on FY26 guidance, particularly around credit growth, margin outlook, and the asset quality trajectory. Any updates on loan book repricing post repo rate adjustments and competitive intensity in deposits will also be key monitorables.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)