Kotak Mahindra Bank (KMB IN) – Q4FY26 Result Update – Better growth/NIM key to re-rating – BUY
Published on 03 May 2026
KMB saw a good quarter as better fees, opex and asset quality led to core PAT beat of 8.8%. Due to asset quality pressure that impacted FY25/26 PAT, bank seems to have tweaked its strategy of increasing unsecured mix; its share may rise at a slower pace since as per the bank, secured growth would not be sacrificed. Hence, reported NIM is guided to remain flattish in FY27E vs FY26 levels (4.6%). Fee growth that was weak in FY26 (6.5%) could pick-up in FY27 that may result in opex increase too. Lower NIM for FY27/28E would be more than offset by lesser opex. We cut multiple to 2.0x but roll forward to FY28 core ABV; trim TP to INR 480 from INR 500. Retain ‘BUY’.
