Kotak Mahindra Bank's Profit Holds Firm Despite Revenue Dip
The bank's profit showed resilience in Q2 FY26, holding steady sequentially even as revenue declined year-on-year.
Kotak Mahindra Bank reported a 7.4% YoY drop in revenue for Q2 FY26, but profit remained stable quarter-on-quarter. The net profit margin improved from the previous quarter.
Kotak Mahindra Bank's second-quarter earnings for FY26 present a mixed picture. While revenue declined compared to last year, the bank managed to keep its profit nearly flat from the previous quarter, showing some operational resilience in a challenging period.
The bank's revenue for the quarter ended September 2025 stood at ₹24,901 crore, marking a 7.4% decrease from the same period last year and a 6.8% sequential drop. Profit after tax (PAT) was ₹4,446 crore, down 11% year-on-year but essentially unchanged from the June quarter, with a marginal 0.4% increase. This stability in profit, despite lower revenue, led to a sequential improvement in the net profit margin to 17.9%, up from 16.6% in Q1 FY26.
A look at the last five quarters reveals the earnings trajectory.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY26 | PreviousQ1 FY26 | Same quarter LYQ2 FY25 |
|---|---|---|---|
| Period | Sep 2025 | Jun 2025 | Sep 2024 |
| Revenue (₹ Cr) | 24,901.39YoY -7.4% | 26,703.92 | 26,880.02 |
| Profit (₹ Cr) | 4,445.94YoY -11% | 4,429.13 | 4,997.78 |
| Net Profit Margin (%) | 17.9YoY -3.8% | 16.6 | 18.6 |
The trailing twelve-month (TTM) net profit margin stands at 17.9%, matching the latest quarter's figure. On the stock front, Kotak Mahindra Bank's shares have delivered a strong 21.8% return over the past year, significantly outperforming its modest 2.6% annualized return over three years. The stock trades at a price-to-earnings (P/E) ratio of 22.8, a 60% premium to its industry average, reflecting market expectations for its future growth. The immediate challenge for the bank is to reignite revenue growth while preserving the recent margin stability.
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· KOTAKBANK
(BSE)
ISIN: INE237A01028
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