Kotak Mahindra Bank share price sinks 5% after muted Q1 show; net profit slips 7% YoY

Market Performance

• At 9:15 a.m. on July 28, 2025, the Kotak Mahindra Bank share price was ₹2,013.3, down 5.3% on the NSE.
• The sharp drop followed the lender’s Q1 FY26 numbers and a visible squeeze in margins.

Main News

• Standalone net profit: ₹3,282 crore, down 7% YoY from ₹3,520 crore (after adjusting for a one-time gain).
• Unadjusted net profit (including one-time gain from the sale of the general insurance business): ₹6,250 crore.
• Provisioning & contingencies: ₹1,208 crore, up 109% YoY.
• Net interest income (NII): ₹7,259 crore, up 6% YoY.
• Net interest margin (NIM): 4.65%; 32 bps QoQ contraction to 4.7% due to lending rate cuts and a heavier mix of low-yield corporate loans.
• Credit growth: 14% YoY.
• Asset quality: Slippages rose to 1.9%, driven by stress in MFI, retail CV, and KCC loans.

The Kotak Mahindra Bank share price reacted to the profit decline, higher provisions, and the sequential NIM compression.

Company Financial Snapshot (Q1 FY26)

Net Profit (adjusted):

• ₹3,282 crore | -7% YoY

Net Profit (unadjusted):

• ₹6,250 crore | boosted by a one-time gain

Net Interest Income (NII):

• ₹7,259 crore | +6% YoY

Net Interest Margin (NIM):

• 4.65% | -32 bps QoQ to 4.7%

Provisions & Contingencies:

• ₹1,208 crore | +109% YoY

Credit Growth:

• 14% YoY, led by the low-yielding corporate book

Asset Quality / Slippages:

• 1.9%, with pressure from MFI, retail CV, KCC portfolios

The Kotak Mahindra Bank share price drop mirrors these operational pressures, especially the spike in provisions and the QoQ margin contraction.

Company Details

• The reported numbers are standalone.
• Profit figures are presented with and without the one-time gain from the sale of the general insurance business.

This clarity matters for readers tracking the Kotak Mahindra Bank share price, as the adjusted profit better reflects core performance.

Summary

The Kotak Mahindra Bank share price slid over 5% after Q1 FY26 results showed a 7% YoY decline in adjusted net profit, a 109% YoY jump in provisions, and a 32 bps QoQ NIM compression. While NII grew 6% YoY and credit expanded 14% YoY, asset quality weakened with slippages at 1.9%. For now, the market is pricing in the impact of higher credit costs and tighter margins, keeping the Kotak Mahindra Bank share price under pressure.