Kotak Mahindra Bank Q1 Preview: Profit Set To Halve On Subdued Margins; Lower Provisions To Cushion Earnings

On Saturday, July 26, Kotak Mahindra Bank (KMB) is scheduled to release its financial results for the quarter that ended on June 30, 2025. According to the forecasts of several brokerages, Kotak Mahindra Bank is anticipated to post a mixed set of results not only because of significant margin pressure and higher costs, but also because moderate loan growth, stable slippages, and lower provisions have been seen.

Gaurav Goel (Entrepreneur and SEBI-Registered Investment advisor) said he expects a muted earning quarter from Kotak Bank due to high base from the previous year. There was a one time gain registered last year. Net profit, as a result, is likely to decline 45% while net interest income is expected to rise 8%. Deposits and lending growth will remain stable.

Kotak Mahindra Bank Q1 Earnings Preview By Yes Securities

Kotak Mahindra Bank is anticipated to record net interest income (NII) of Rs 7,407 crore, representing an 8.3% year-on-year rise, according to a report from Yes Securities. Sequentially, NII is probably going to remain relatively steady due to pressure on net interest margins (NIMs) from a decline in advance yield that is surpassing the cost of deposits.

Pre-provision operating profit (PPOP) for the bank is expected to be Rs 5,246 crore, representing a modest fall of 0.2% YoY and a 4.1% decline quarter on quarter (QoQ) due to higher operating expenses in comparison to business growth. The expected profit after tax (PAT) is Rs 3,297 crore, representing a steep 47.2% YoY and 7.2% QoQ fall.

Commenting on the Q1FY26 earnings preview of Kotak Mahindra Bank said in a report that "Sequential loan growth will be in the 2.5% ballpark due to idiosyncratic growth trajectory. NII growth will be slower than average loan growth due to fall in yield on advances outpacing cost of deposits. Consequently, NIM will be lower sequentially. Sequential fee income growth will be lower than loan growth. Opex growth will match business growth. Slippages would be broadly stable on a sequential basis. Provisions will be lower on a sequential basis."

Regarding asset quality, it is anticipated that slippages will stay broadly stable and that provisions are likely to be lower sequentially.

Kotak Mahindra Bank Q1 Earnings Preview By Axis Securities

At Rs 3,264 crore, non-interest income is expected to rise 2.6% sequentially and 11.4% YoY. Kotak Mahindra Bank's Pre-Provision Operating Profit (PPOP) is predicted at Rs 5,398 crore, indicating a 2.7% YoY growth but a 1.4% QoQ fall. It is anticipated that provisions will drop to Rs 845 crore, a 7.1% QoQ drop, but still 46.1% YoY higher. With an expected EPS of Rs 17.2, net profit is projected to be Rs 3,428 crore, down 3.5% QoQ and 45.1% YoY.

Axis Securities said in a report that the business growth momentum of Kotak Mahindra Bank is expected to remain healthy, and unsecured book growth remains a key monitorable. However, margin compression appears imminent, and operating expense ratios may see a slight uptick. Asset quality is projected to remain broadly stable with credit costs under control.

Kotak Mahindra Bank Q1 Earnings Preview By InCred Equities

According to the InCred Equities analysis, Kotak Mahindra Bank is anticipated to report net interest income (NII) of Rs 7,300 crore for Q1FY26, representing a 2.3% QoQ rise and a 6.9% YoY growth. There may be pressure on operating performance as pre-provision operating profit (PPOP), which is expected to be Rs 5,200 crore, is down 1.4% YoY and 5.4% QoQ. With lower margins and higher provisions, net profit (PAT) is expected to shrink by 9.3% QoQ and 48.5% YoY to Rs 3,200 crore.

The expected net interest margin (NIM) is 4.80%, down 8 bps QoQ and 22 bps YoY. Despite the challenging rate environment, the bank's advances are expected to climb 14% YoY to Rs 4.45 lakh crore, with a moderate 0.2% QoQ growth.

Kotak Mahindra Bank Share Price Target

"Kotak Bank continues to trade with a bearish undertone, making lower highs on the daily chart. Resistance is firmly placed at ₹2,170, and the stock is struggling to sustain above its short-term moving averages. Support lies at ₹2,080-₹2,050. A breach below this zone could invite further downside. The sentiment remains cautious, and unless it decisively breaks ₹2,170, the trend is likely to remain weak. Short-term traders should stay defensive," commented Riyank Arora, technical analyst at Mehta Equities.

Disclaimer

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