Kotak Mahindra Bank shares gain over 4%, hit highest level since April 2025; here’s what you should know

On a standalone basis, the private sector lender reported a 29% increase in profit after tax at ₹4,212 crore, aided by core income growth and a decline in provisions.Its core net interest income was up 16% to ₹8,459 crore, helped by a 25% jump in net advances and constrained by a 0.23% compression in Net Interest Margin (NIM).Mobilisation of ₹55,344 crore of FCNR(B) deposits under the RBI's concessional swap facility led to NIM compression during the reported quarter.The bank said that loans aggregating to ₹16,110 crore were disbursed as part of the FCNR(B) scheme, which also allowed for leveraged borrowing against deposits.From an asset quality perspective, the bank reported a decline in slippages at ₹1,230 crore in the reporting quarter as against ₹1,629 crore in the year-ago period, and the gross non-performing assets ratio improved to 1.04 per cent as against the year-ago period's 1.39 per cent.The Capital Adequacy Ratio was at 21.9%, including the core Common Equity Tier 1 (CET1) buffer at 21.4% as of September 30, 2026.Brokerages retain Buy calls after Q2

Domestic brokerage firms including Axis Securities, JM Financial, and Systematix Institutional Equities have retained their bullish outlooks on the stock following the lender’s September-quarter results, with target prices of ₹550, ₹500 and ₹510, respectively. Axis Securities maintained its 'buy' recommendation, valuing the bank’s core book at 2.2 times its September 2028 estimated adjusted book value (ABV) and assigning ₹140 per share to its subsidiaries.

This translates into a target price of ₹550, implying an upside of 28% from the current market price. JM Financial upgraded the stock to 'buy' from its earlier rating and raised its target price to ₹500 from ₹415. The brokerage also increased its FY27 and FY28 earnings per share estimates by 5% and 7%, respectively. Systematix Institutional Equities maintained its buy rating and raised its target price to ₹510 from ₹475, factoring in strong advances, growth, and margin movements.

It valued the standalone bank at two times its FY28 estimated adjusted book value per share of ₹173 and assigned ₹161 per share to its subsidiaries and associates.Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.