Bank of Baroda's Profit Slumps Over 50% Despite Revenue Growth
The bank's Q1 profit fell sharply year-on-year and quarter-on-quarter, even as total revenue continued its steady climb.
Bank of Baroda reported a 6.8% YoY rise in revenue for Q1 FY27, but profit collapsed by 53.1%, leading to a severe contraction in net profit margin.
Bank of Baroda's first-quarter results for FY27 present a stark divergence: steady revenue growth contrasted by a dramatic plunge in profitability. While total income rose, net profit more than halved compared to the same period last year, pointing to significant pressure on the bottom line.
The bank's revenue for the quarter ended June 2026 reached ₹35,114.5 crore, a 6.8% increase from Q1 FY26 and a modest 1.7% sequential rise. However, profit after tax (PAT) fell sharply to ₹1,572.6 crore, down 53.1% year-on-year and a steep 72.2% from the previous quarter. This has compressed the net profit margin to just 4.5%, a drop of 570 basis points from a year ago and far below the 13.0% average over the last twelve months (TTM).
The recent trajectory highlights this quarter as a significant deviation from recent trends.
Revenue (₹ Cr.)
Profit (₹ Cr.)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr.) | 35,114.5YoY +6.8% | 34,513.7 | 32,866.3 |
| Profit (₹ Cr.) | 1,572.6YoY -53% | 5,648.0 | 3,351.9 |
| Net Profit Margin (%) | 4.5YoY -56% | 16.4 | 10.2 |
Key Points
- The bank's trailing twelve-month (TTM) profit stands at ₹17,697.9 crore on revenue of ₹1,36,546.3 crore, for a TTM net profit margin of 13.0%.
- For the full financial year FY26, the bank reported a net profit margin of 14.8%.
- The stock trades at a P/E of 6.4, a significant discount to the industry average P/E of 12.6.
The sharp quarterly profit decline places immediate focus on the bank's ability to restore its profitability metrics in the coming quarters.
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· BANKBARODA
(BSE)
ISIN: INE028A01039
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