Kotak Mahindra Bank Share Price fell sharply by over 5% on January 27, 2026, following the release of the bank’s financial results for the October–December quarter of FY26. The stock, which dropped to ₹400.5 per share, recorded its biggest single-day decline since July 2025, reflecting market reactions to earnings that fell short of expectations.
Market Performance
The banking heavyweight witnessed a notable dip in its share price, impacting both the Sensex and Nifty Bank index. Investors reacted to the quarterly results as the numbers indicated modest growth in profits but highlighted pressure on margins.
- Current Share Price: ₹400.5
- Single-day Fall: Over 5%
- Six-month Performance: ~4% gain
The sharp decline highlights the market’s sensitivity to quarterly earnings announcements and signals cautious investor sentiment amid mixed financial indicators.
Kotak Mahindra Bank Q3 FY26 Results
Kotak Mahindra Bank posted a standalone net profit of ₹3,446.14 crore for Q3 FY26, reflecting a 4% increase compared to ₹3,305 crore in the same quarter last year. Despite the growth, the results fell short of market expectations, which had anticipated a profit of approximately ₹3,572 crore.
Key financial highlights:
- Net Interest Income (NII): ₹7,565 crore, up 5% YoY from ₹7,196 crore
- Net Interest Margin (NIM): 4.54%, down from 4.93% YoY
- Asset Quality:
- Gross NPA: 1.30%, improved from 1.50% a year ago
- Net NPA: 0.31%, down from 0.41% YoY
The bank’s growth trajectory remains steady, driven by core lending activities, while slightly declining margins and stable asset quality reflect a cautious operating environment.
Company Overview
Kotak Mahindra Bank, one of India’s leading private sector banks, continues to expand its lending and deposit base. The bank’s loan growth in Q3 remained robust, supported by mortgages, SME financing, and business banking.
Additional financial metrics from Q3 FY26:
- Loan Growth (YoY): ~16%
- Deposit Growth (YoY): ~14%
- CASA Ratio: 41.3%, down 101 bps sequentially
Despite the dip in the share price, Kotak Mahindra Bank has shown resilience in managing asset quality, with non-performing assets gradually declining over the year. The bank’s focus on core retail, SME, and secured lending continues to support its balance sheet stability.
Summary
Kotak Mahindra Bank’s Q3 FY26 results show a modest rise in profits but pressure on margins and asset quality improvements that are only gradual. The market reacted swiftly, pushing the share price down over 5%, marking the biggest single-day fall in the past six months.
- Net Profit grew 4% YoY to ₹3,446.14 crore
- NII up 5% YoY to ₹7,565 crore
- Gross and Net NPAs improved to 1.30% and 0.31%, respectively
- Loan and deposit growth remained healthy
Investors are keeping a close eye on how the bank navigates margin pressures and continues to manage asset quality, as these factors will likely shape market sentiment and future performance.
Source: Moneycontrol
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