Overview

• Kotak Mahindra’s consolidated net profit for Q1 FY26 dropped to Rs 4,472 crore from Rs 7,448 crore a year earlier after excluding over Rs 3,000 crore of stake-sale gains.
• Kotak’s standalone net profit fell 7% to Rs 3,282 crore as net interest margin narrowed by 0.37 percentage point to 4.65% and provisions on advances more than doubled to Rs 1,200 crore for stressed microfinance and commercial vehicle loans.
• IndusInd Bank’s standalone profit plunged 68% to Rs 684 crore, with net interest income down 14% to Rs 4,640 crore and gross non-performing assets rising to 3.64%.
• Both banks’ shares slumped roughly 6%–7% on the Bombay Stock Exchange following the results, reflecting investor concerns over deteriorating loan health and slower transmission of RBI rate cuts.
• Brokerage forecasts vary widely—IndusInd profit declines are projected between 50% and 85%, and some analysts expect margins to recover later this fiscal as rate-cut benefits pass through to deposits.