Street View: India's Kotak Mahindra Bank seen facing margin pressure this fiscal year

Kotak Mahindra Bank

04/05/2026 05:06

** Kotak Mahindra Bank KTKM.NS shares fall about 2% to 347.60 rupees

** Bank reported 13.4% y/y Q4 net profit rise, supported by lower provisions and improved asset quality

** However, net interest margin (NIM) was 4.67% vs 4.97% a year ago

MARGIN OUTLOOK, GROWTH MIX WEIGH ON SENTIMENT

** Jefferies ("Buy"; TP: 450 rupees) says profit beat estimates but weaker margin outlook due to rising deposit costs led to earnings cuts

** Nomura ("Buy"; TP: 460 rupees) says cost pressures likely to drag profitability in FY27

** Systematix ("Buy"; TP: 475 rupees) also flags continued pressure on margins into FY27 as higher term deposit rates lift funding costs

** Elara Securities ("Buy"; TP: 473 rupees) says pricing pressures and margin risks warrant a cautious outlook

($1 = 94.8425 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru)

((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))