1. At a Glance
Kotak Mahindra Bank posted Q1 FY26 profits of ₹4,472 Cr (down 2.3% YoY), revenue up 8.9% to ₹17,248 Cr, and GNPA steady at 1.45%. Stock trades at ₹2,125 with a P/E of 22. The Chief Credit Officer resigned—because apparently, watching NPAs is too boring.
2. Introduction with Hook
Think of Kotak as that overachiever kid in class—good grades, great attendance, but somehow still not the teacher’s favorite. Two killer stats:
- Market cap? ₹4.22 lakh crore, bigger than some countries’ GDP.
- Contingent liabilities? ₹11.75 lakh crore—enough to give auditors a heart attack.
3. Business Model (WTF Do They Even Do?)
Kotak is basically a financial Swiss army knife:
- Retail & Corporate Banking: money in, money out.
- Broking: 11.8% market share, loves commissions.
- Asset Management: ₹3.5 trillion AUM.
- Insurance & Vehicle Finance: because why not?
Punchline: “They make money from your money—classic banker move.”
4. Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹17,248 Cr (YoY +8.9%)
- PAT: ₹4,472 Cr (YoY -2.3%)
- NIM: holding strong, GNPA 1.45%, NNPA 0.36%
- EPS: ₹22.49
Commentary: Stable, but profit dip is like your WiFi during a Zoom call—annoying but not catastrophic.
5. Valuation
Trading at 2.7x book and 22x earnings.
- P/E method: 20x FY26E EPS → ₹1,950–₹2,200
- P/BV method: 2.5x → ₹2,000–₹2,300
Fair Value Range: ₹1,950–₹2,300
If you pay higher, you’re also fine with airport Maggi pricing.
6. What’s Cooking – News, Triggers, Drama
- Chief Credit Officer quit in July 2025—talent drain or just corporate politics?
- Acquisitions: Standard Chartered’s personal loan book, ₹3,330 Cr loan book takeover.
- Fundraise: ₹10,000 Cr via debentures approved in Jan 2025.
- Leadership churn—COO & CTO left earlier.
Drama level: high enough for a Netflix documentary.
7. Balance Sheet
| Assets | ₹8,79,774 Cr |
|---|---|
| Liabilities | ₹8,79,774 Cr |
| Net Worth | ₹1,57,489 Cr |
| Deposits | ₹4,94,707 Cr |
| Borrowings | ₹97,622 Cr |
Deposits keep growing like WhatsApp forwards; borrowings manageable.
8. Cash Flow – Sab Number Game Hai
| FY23 | FY24 | FY25 |
|---|---|---|
| Ops | ₹8,308 Cr | ₹15,685 Cr |
| Investing | -₹10,903 Cr | -₹8,919 Cr |
| Financing | ₹7,543 Cr | ₹15,515 Cr |
Ops cash is solid; investing burns cash like a startup; financing keeps the balance alive.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 15.4% |
| ROCE | 8.17% |
| NIM | ~4% |
| GNPA | 1.45% |
| P/E | 22.1 |
ROE is hot, ROCE is meh. NPAs are low, keeping RBI happy.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | PAT |
|---|---|---|
| FY23 | ₹42,151 Cr | ₹14,925 Cr |
| FY24 | ₹56,237 Cr | ₹18,213 Cr |
| FY25 | ₹65,669 Cr | ₹22,126 Cr |
Profits have doubled in 3 years. FY26 Q1 dip is a speed bump.
11. Peer Comparison
| Bank | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| HDFC Bank | 3,42,193 | 16,258 | 21.8 |
| ICICI Bank | 1,90,830 | 13,558 | 19.9 |
| Axis Bank | 1,28,564 | 6,244 | 12.1 |
| Kotak Bank | 67,080 | 19,150 | 22.1 |
Kotak: smaller balance sheet, higher P/E—premium banking, premium pricing.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 25.88% (steady)
- FIIs: 32.3% (foreign love cooling off)
- DIIs: 29.6% (domestic love increasing)
- Public: 12.2% (retail holding strong)
Ownership: stable, though FIIs trimmed stake from 40% to 32%.
13. EduInvesting Verdict™
Kotak is a steady private bank with premium valuation, low NPAs, and consistent growth. Leadership exits and profit dip are short-term hiccups.
Final word: “A business-class seat—pricey, comfortable, but not turbulence-proof.”
Written by EduInvesting Team | 26 July 2025
Tags: Kotak Mahindra Bank, Q1 FY26, Banking Analysis, EduInvesting Premium
