Kotak Mahindra Bank Earnings Summary — Q1 FY2027
Kotak Mahindra Bank Posts 22.5% YoY Consolidated Profit Growth; Acquires DBAG India Retail Business
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹18,355 Cr is 6.4% higher year-on-year.
- Revenue has compounded at 8.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹5,480 Cr is 22.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 1.2% annualised across the period.
- Operating margin stands at 19.1% in Q1 FY2027.
- Operating margin compressed by 486 bps year-on-year.
- Over the last two years operating margin has contracted by 352 bps.
- PBT margin is 40.9%.
- Expenses grew 13.2% against revenue growth of 6.4%.
- Operating profit of ₹3,497 Cr is 15.2% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 58/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 18,355 | 17,827 | 17,507 | 17,199 | 17,248 | 16,772 | 16,633 | 16,427 | 15,837 | 15,156 |
| Expenses | Stable | 14,857 | 13,656 | 13,933 | 11,606 | 13,123 | 13,666 | 10,596 | 13,094 | 12,263 | 14,920 |
| Operating Profit | Volatile | 3,497 | 4,171 | 3,574 | 5,593 | 4,125 | 3,106 | 6,037 | 3,333 | 3,574 | 236 |
| Operating Margin | Volatile | 19.1% | 23.4% | 20.4% | 32.5% | 23.9% | 18.5% | 36.3% | 20.3% | 22.6% | 1.6% |
| Other Income | Accelerating | 11,714 | 10,648 | 10,344 | 7,703 | 9,456 | 10,402 | 7,313 | 10,453 | 13,042 | 12,751 |
| Interest | Stable | 7,703 | 7,376 | 7,384 | 7,333 | 7,527 | 7,157 | 7,170 | 7,139 | 6,805 | 6,212 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Stable | 7,509 | 7,443 | 6,533 | 5,963 | 6,053 | 6,351 | 6,180 | 6,647 | 9,811 | 6,775 |
| Tax | Improving | 2,022 | 2,042 | 1,629 | 1,517 | 1,624 | 1,442 | 1,540 | 1,649 | 2,412 | 1,533 |
| Net Profit | Stable | 5,480 | 5,423 | 4,924 | 4,468 | 4,472 | 4,933 | 4,701 | 5,044 | 7,448 | 5,337 |
| Net Margin | Stable | 29.9% | 30.4% | 28.1% | 26.0% | 25.9% | 29.4% | 28.3% | 30.7% | 47.0% | 35.2% |
Key Takeaways
- Consolidated Net Profit rose 22.5% YoY to ₹5,480.46 crore, supported by strong performance across subsidiaries.
- Announced the acquisition of Deutsche Bank AG’s retail, private banking, and wealth management business in India, including ~₹29,000 crore in advances.
- Standalone Gross NPA improved to 1.18% compared to 1.20% in the previous quarter and 1.48% YoY.
- Subsidiary performance was robust, with Asset Management profits nearly doubling YoY to ₹766.51 crore.
- Capital Adequacy remains strong with a Standalone Basel III ratio of 22.78%.
- Kotak Mahindra Investments Limited (KMIL) transitioned focus, assigning ₹9,587 crore in loan assets to the Bank starting July 2026.
- Consolidated total assets crossed the ₹10 lakh crore milestone during the quarter.
Management Guidance
Management is focusing on organizational simplification and synergy, evidenced by the loan asset migration from KMIL. The acquisition of Deutsche Bank's India retail portfolio targets a significant expansion in high-net-worth and wealth management segments.
Sentiment Shift
Improving
A return to strong YoY profit growth and strategic inorganic expansion via the DBAG acquisition offset recent regulatory and transition concerns.
Outlook
The outlook is bolstered by the integration of the newly acquired retail and wealth units from Deutsche Bank. The Bank continues to remediate tech stacks in light of past RBI actions while maintaining industry-leading asset quality metrics.
From the Annual Report (Key Quotes)
“On 30th June, 2026, the Bank executed a Business Transfer Agreement... for the acquisition of DBAG's retail banking, private banking and wealth management business in India.”
“Capital adequacy ratio - Basel III (%) was 22.78% as of June 30, 2026.”
“Net Profit from ordinary activities after tax before Minority Interest for the quarter was ₹5,487.06 crore.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Kotak Mahindra Bank's latest quarterly filing and earnings call. For informational purposes only — not investment advice.