India's Kotak Mahindra bank slides after profit miss

Kotak Mahindra Bank

27/01/2026 04:18

** Shares of Kotak Mahindra Bank KTKM.NS fall as much as 5.3% to 400.50 rupees

** Stock set to fall the most since July 2025

** The lender, India's third-largest private lender by market cap, said its Q3 net profit rose to 34.46 billion rupees ($375.2 million) vs analysts estimates of 35.72 billion rupees - data compiled by LSEG

** While growth is picking up, higher opex seen after four quarters of managing it well; opex (ex-labour code impact) went up 6% Q/Q - CLSA

** Emkay expects KTKM to report a relatively moderate RoA of 1.9% in FY26E, albeit with an improvement to 2% in FY27/FY28E as margins and loss -loss provisions normalize

** Its provisions and contingencies fell 15% Q/Q to 8.1 billion rupees. However, they were still up 2% Y/Y

** Analysts have a "buy" rating on avg; median PT is 493 rupees - data compiled by LSEG

** KTKM down 9% so far in January

($1 = 91.8470 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru)

((UrviManoj.Dugar@thomsonreuters.com;))