Bank of Maharashtra Q4 FY26: Broker Targets Rise to ₹90

Stock jumps as results land

Bank of Maharashtra (BoM) rallied after reporting a strong March quarter, with the stock hitting fresh highs in Tuesday’s trade. On the BSE, the share rose as much as 6.24% to ₹80.40, while on the NSE it was up 4.36% at ₹78.83 around 9:28 AM IST, touching an intraday 52-week high of ₹79.20.

The move came a day after the state-run lender discussed FY27 guidance on its earnings call and as brokerages revised estimates upward. The stock has also delivered about 55% over the past one year, according to brokerage commentary in the report.

Q4 FY26 profit and income: what changed

For Q4 FY26, Bank of Maharashtra reported net profit of ₹2,014 crore, up 34.89% year-on-year from ₹1,493 crore in Q4 FY25. Net interest income (NII) increased 18.81% year-on-year to ₹3,702 crore from ₹3,116 crore, and rose 8.19% sequentially.

Net revenues (NII plus other income) rose 13.26% year-on-year to ₹4,640 crore from ₹4,097 crore, with a 6.55% sequential increase. Operating profit increased 16.92% year-on-year to ₹2,946 crore compared with ₹2,520 crore, and improved 7.69% quarter-on-quarter.

For the full year FY26, net profit rose 27.17% to ₹7,019 crore and NII increased 17.13% to ₹13,664 crore. The domestic net interest margin (NIM) for FY26 was reported at 3.91%.

Asset quality improves further

Asset quality improved during the quarter. Gross NPA declined to 1.45% as of March 31, 2026, compared with 1.74% a year earlier and 1.60% in the previous quarter. Net NPA eased to 0.13% from 0.18% in the year-ago period and 0.15% in the previous quarter.

The provision coverage ratio stood at 98.59% as of March 31, 2026, improving from 98.26% a year earlier and 98.41% as of December 31, 2025. The quarter also showed efficiency gains, with cost-to-income ratio at 36.51% versus 38.50% a year ago and 37.19% in the December quarter. Return on assets improved to 1.97% from 1.78% in Q4 FY25.

Systematix: strong advances growth and cost control

Systematix Institutional Equities revised its target price upward after the March quarter results, citing strong advances growth, better cost controls, and improved return on asset.

Systematix said BoM’s profit came in 12.3% above its estimate of ₹1,790 crore. It highlighted sequential net advances growth of 6.9% in Q4 and 22% year-on-year, while deposits grew 9% sequentially and 14.1% year-on-year.

On margins, Systematix noted NIM improved 5 basis points sequentially (down 9 bps year-on-year). Yield on advances declined 20 bps quarter-on-quarter to 8.72%, which it said was offset by a 15 bps decline in cost of funds and a 13 bps increase in yield on investments. Management guided for NIM of 3.75% going forward, with deposit repricing benefits “largely captured”, as per the note.

Slippages and credit costs: the numbers to track

Systematix said gross slippages for the quarter stood at ₹8,400 crore and the annualised gross slippage ratio came in at 1.2%, up 5 bps quarter-on-quarter and 6 bps year-on-year. Recoveries and upgrades were reported at ₹340 crore, resulting in net slippage addition of ₹500 crore.

Credit costs remained below 1%, and Systematix said slippages are expected to remain below 1% while credit costs are expected to stabilise at 1% going forward. It also said advances are expected to grow 18% and deposits 14%-15%, while maintaining CASA at 50%.

HDFC Securities: Buy reiterated, estimates raised

HDFC Securities reiterated a Buy and revised its target price to ₹90. The brokerage said it raised FY27E-FY28E estimates by 4%, factoring in higher business growth and stronger asset quality through utilisation of the provisioning buffer, while flagging the need to monitor risks in agriculture and MSME portfolios.

HDFC Securities also cited strong earnings supported by around 22% year-on-year loan growth and about 14% year-on-year deposit growth, with deposit growth trailing advances. It noted the CASA ratio improved to nearly 52.5%, and highlighted credit costs remaining below 1% alongside improving asset quality.

Systematix target revised to ₹88 and valuation basis

Based on revised estimates, Systematix suggested a new target price of ₹88 for BoM, from ₹80 earlier, while maintaining its Buy rating. It said the target values BoM at 1.5 times its estimated FY28 adjusted book value of ₹58 per share.

The presence of multiple targets in the reporting also points to a spread in analyst views. The same compilation referenced an average target around ₹76.00 and some reports as low as ₹70.25, while another data point cited a 12-month consensus of ₹83.33 based on Bloomberg-tracked analysts.

Dividend announced for FY26

The board recommended a final dividend of ₹1.20 per equity share for FY26, subject to shareholder approval at the AGM. This is in addition to an interim dividend of ₹1 per share declared in January 2026, taking the total dividend for FY26 to ₹2.20 per share.

Business update: deposits, advances and mix

In a separate business update for Q4 FY26, BoM reported total deposits of ₹350,585 crore as of March-end, compared with ₹307,143 crore in the previous fiscal year. Global advances rose to ₹292,115 crore from ₹239,837 crore.

The update also gave a mix snapshot: domestic corporate advances stood at ₹112,000 crore (up from about ₹94,000 crore), while RAM (Retail, Agriculture and MSME) advances were ₹179,000 crore. The domestic credit-deposit ratio improved to 82% from 78%.

Key numbers at a glance

Guidance and what it means for investors

Management’s FY27 guidance, as cited in the compilation, includes total business growth of 16%-17%, advances growth of 18%, and deposits growth of 14%-15%. It guided NIM at 3.75% and targeted NII growth at 15% year-on-year, alongside non-interest income growth of 10% and cost-to-income ratio below 40%.

On asset quality, the guidance cited gross NPA within 2%, net NPA within 0.2%, slippages below 1%, credit cost around 1%, and provision coverage ratio at 98%. The compilation also referenced a capital adequacy (CRAR) guidance of 18%.

Conclusion

Bank of Maharashtra’s Q4 FY26 results combined profit growth, improving asset quality, and tighter cost metrics, helping push the stock to fresh highs around ₹80.4. Systematix raised its target to ₹88 and HDFC Securities reiterated Buy with a ₹90 target, while the broader set of published targets indicates a wide dispersion. The next checkpoints for investors are the AGM approval of the FY26 final dividend and delivery against management’s FY27 guidance on growth, margins, and slippages.