Kotak Mahindra Bank Q2 FY27 Preview: PAT May Rise 32%

Q2 results are scheduled for October 24

Kotak Mahindra Bank is scheduled to place its standalone and consolidated financial results for the second quarter and first half of FY27 before its board on October 24, 2026. The results cover the quarter ended September 30, 2026. The bank has already released a provisional business update that points to strong growth in both advances and deposits. Brokerages expect this operating momentum to support a substantial year-on-year rise in profit after tax, or PAT. Their estimates place the expected PAT growth range between 27% and 31.9% year-on-year. Net interest income, or NII, loan growth, margins, operating expenses and asset quality will be among the main items tracked after the results announcement.

Brokerages expect higher net profit

Motilal Oswal Financial Services, ICICI Securities and Dolat Capital have estimated that Kotak Mahindra Bank’s Q2 FY27 PAT could be in the range of Rs 4,120 crore to Rs 4,290 crore. The estimates imply annual growth of 27% to 31.9%. Motilal Oswal Financial Services expects PAT of Rs 4,290 crore, which would represent 31.9% growth from a year earlier. Its projection also indicates sequential growth of about 4.1% from Rs 4,120 crore reported in Q1 FY27. The June quarter had recorded standalone PAT growth of 26% year-on-year. The forthcoming Q2 result will show whether the bank maintained that pace as it entered the second quarter of FY27.

Net interest income remains a central metric

Brokerage projections suggest NII could grow between 11.8% and 15% year-on-year in Q2 FY27. NII measures the difference between interest earned on loans and interest paid on deposits and borrowings. Motilal Oswal Financial Services estimates NII at Rs 8,330 crore, up 14% year-on-year. ICICI Securities projects NII of Rs 8,171.8 crore, representing growth of 11.8% year-on-year and 3.1% quarter-on-quarter. These estimates place interest income growth at the centre of the expected earnings improvement. The final result will also clarify the extent to which loan expansion translated into interest income during the quarter.

Advances rose nearly 25% year-on-year

Kotak Mahindra Bank reported standalone end-of-period net advances of Rs 5,77,094 crore as of September 30, 2026. This was 24.7% higher than Rs 4,62,688 crore a year earlier. On a sequential basis, advances were up 12.7%. The year-on-year increase was Rs 1,14,406 crore. The provisional update indicates growth across the bank’s credit book, while the available disclosure does not provide a segment-wise break-up. Motilal Oswal Financial Services expects advances to grow 7.9% sequentially for Q2 FY27. The reported advance data will be a key reference point for assessing the bank’s NII performance and management commentary.

Deposits expanded alongside the loan book

Total end-of-period deposits rose 23.2% year-on-year to Rs 6,51,491 crore at the end of September 2026. Deposits were Rs 5,28,776 crore at the end of September 2025, making the annual increase Rs 1,22,715 crore. The bank said deposits increased 13.7% sequentially during the quarter. This growth was close to the rise in advances on a year-on-year basis, an important operating indicator for a lender expanding its credit book. Motilal Oswal Financial Services has projected deposits to increase 8.4% sequentially. The quarterly results may provide further detail on deposit mix and funding costs.

CASA balances and FCNR(B) deposits

Current account savings account, or CASA, balances stood at Rs 2,49,105 crore as of September 30, 2026. CASA balances rose 11.3% year-on-year, according to the bank’s update. The bank also mobilised FCNR(B) deposits of $5.78 billion during the quarter. Its international branches extended advances of $1.68 billion against these FCNR(B) deposits, converted at the prevailing exchange rate as of September 30. These figures form part of the bank’s disclosed funding and international lending activity for the period. The result announcement may offer additional context on how these deposits and advances affected the quarter’s financial performance.

Margins and operating costs are key monitorables

The expected increase in NII does not by itself establish the direction of net interest margins, or NIMs. Investors will therefore monitor the reported margin figure and management’s explanation of funding costs and lending yields. Operating expenses are another focus area because they influence profit growth and pre-provision operating profit, or PPoP. Motilal Oswal Financial Services estimates PPoP at Rs 6,360 crore, up 20.7% year-on-year. The Q2 statement will provide the reported expense figures and clarify the relationship between income growth, costs and operating profit. Asset quality will also remain an important result-day monitorable alongside margins and expenses.

Key Q2 FY27 figures and estimates

Why the Q2 update matters for investors

The business update showed that advances and deposits grew at more than 23% year-on-year, providing the operating backdrop to brokerage earnings estimates. The gap between the 24.7% rise in advances and the 23.2% rise in deposits was narrow on a year-on-year basis. However, the reported results are needed to determine NIMs, expenses, PPoP, asset quality and the final PAT figure. Kotak Mahindra Bank does not provide explicit quarterly guidance, according to the available information. Management has targeted mid-to-high 20% growth in advances and deposits for FY27. With advances up 24.7% year-on-year in Q2, the disclosed business update indicates progress toward that stated full-year trajectory.

What to watch after the board meeting

The board meeting on October 24 will approve the bank’s standalone and consolidated Q2 and half-year FY27 results. The announcement will confirm whether NII was within the estimated range of Rs 8,171.8 crore to Rs 8,330 crore and whether PAT reached the projected Rs 4,120 crore to Rs 4,290 crore range. Investors will also assess the reported NIM, operating expenditure, PPoP and asset-quality data. The provisional business update has established strong loan and deposit growth for the September quarter. The financial results and management disclosures will provide the remaining information needed to assess the sustainability of earnings growth.