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IndiaPulse

Kotak Mahindra Bank Limited (KOTAKBANK)

Large Cap

Financial Services stocks · Large cap · NSE

Kotak Mahindra Bank is a diversified Indian financial conglomerate offering banking, lending, capital markets, asset management, and insurance services. It is the 4th largest private sector bank in India by balance sheet size, serving 50 million customers with a consolidated balance sheet of ₹ 10.1 trillion.

₹424.5
+3.35 · +0.80%
Quote04 Sept, 03:53 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags03 May 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Financial Services P/E 18.5 (n=240)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.

Suggested next step
Research, do not rush
The four lenses are not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
OVERVALUED
28

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Healthy Trust
72

low confidence · 0/0 claims checked

Technical
Neutral
56

Timing lens: price trend and sector relative strength.

Result consistency
consistent
87

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Average · 45/100

Rev +6% YoY · PAT +23% YoY · operating leverage

Filed 18 Jul 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹18,355 Cr+6.4%+3.0%
EBITDANDFNDFNDF
Operating marginNDFNDFNDF
PAT₹5,480 Cr+22.5%+1.1%
PAT margin29.9%+393 bps-56 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis intactReviewed 2026-07-19T00:42:15.068Z
Management commentary snapshot

Q1FY27 Consolidated PAT up 23% YoY, 1% QoQ, driven by strong subsidiary performance. Bank PAT grew 26% YoY, 2% QoQ, with customer assets up 16% YoY. NIM declined QoQ, while asset quality improved YoY.

The bank delivered robust YoY growth in PAT and customer assets across the group, demonstrating strength in its diversified model. However, sequential moderation in NIM and CASA ratio, alongside an increase in SMA-2, warrants close monitoring despite improved asset quality metrics.

Current business mix

PAT Contribution (Bank & Subsidiaries) Q1FY27

Latest issuer-disclosed distribution across 4 reported categories.

Businessmix
Bank & Other Lending Related Entities75.0%
Capital Market11.0%
Insurance6.0%
Asset Management & Others9.0%
Growth engines

HNI / Private Banking

Positive

Driving profitable growth with high-value customers anchored in multi-generational relationships and deeper engagement through multi-products across the group.

Core India (Kotak811)

Positive

Driving scalable growth through fully digital, end-to-end journeys for customer onboarding, stable granular deposits, and lifecycle-driven monetization.

SME Advances

Positive

SME Advances reached ₹ 1.3 lakh crore, growing 20% YoY and 3% QoQ, accounting for 24% of the Bank’s advances mix.

Institutional Banking

Positive

A fully integrated platform delivering balance-sheet, capital market, and advisory solutions, leveraging leadership in custody, investment banking, and broking.

Capacity and execution

Bank Branch Network Expansion

Positive

The Bank's branch presence increased to 2,301 as of June 30, 2026, from 2,276 as of March 31, 2026.

Group Branch Network

Positive

The total Group Branch Network in India stands at 5,916 as of June 30, 2026.

Tailwinds

Diversified Financial Conglomerate Structure

Positive

The conglomerate structure helps retain profitability within the group by capturing shifting financial trends through cycles.

Digital Transformation & AI Adoption

Positive

Launched a cloud-native banca platform with KMBL, enhancing digital insurance journeys and scalability; built an AI-powered Incentive Predictor.

Headwinds

Decline in Trading and MTM Income

Negative

Trading and MTM income was a loss of ₹ 58 cr in Q1FY27, compared to a gain of ₹ 195 cr in Q1FY26 and ₹ 52 cr in Q4FY26.

Increase in SMA-2 Accounts

Negative

SMA-2 accounts increased to ₹ 249 cr as on June 30, 2026, from ₹ 194 cr as on March 31, 2026.

Risk radar

Asset Quality Deterioration Risk

Neutral

The increase in SMA-2 accounts from ₹ 194 cr to ₹ 249 cr QoQ indicates potential for future slippages.

Interest Rate Volatility Impact

Neutral

The significant decline in Trading and MTM income to a loss of ₹ 58 cr suggests sensitivity to market interest rate movements.

Funding Cost and Deposit Competition

Neutral

The sequential decline in CASA ratio and NIM could indicate increasing competition for deposits and pressure on lending spreads.

Management accountability

What management said, and what results must prove

Management accountability

What management said, and what results must prove

Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.

Analyst reading lens
Compare BOTH

YoY comparison is crucial for assessing overall growth and performance against the previous year's base, especially for a diversified financial conglomerate. QoQ comparison is vital for tracking sequential momentum in core banking metrics like NIM, CASA, and asset quality, which reflect immediate operational shifts and market conditions.

Sector KPIs management disclosed

Consolidated Customer AUM Growth

Positive

Consolidated Customer AUM grew 8% YoY to ₹ 805,531 cr as of June 30, 2026.

Bank Customer Assets Growth

Positive

Bank Customer Assets grew 16% YoY to ₹ 570,901 cr as of June 30, 2026.

Net Interest Margin (NIM)

Negative

Bank NIM was 4.53% in Q1FY27, down from 4.65% in Q1FY26 and 4.67% in Q4FY26.

Gross Non-Performing Assets (GNPA)

Neutral

Bank GNPA was 1.18% in Q1FY27, improving from 1.48% in Q1FY26 but slightly up from 1.20% in Q4FY26.

Management forward view

Customer-Centricity

Positive

Focus on understanding customer needs and stitching together relevant product propositions drawn from capabilities across the Group to become the primary banking relationship.

Building Sustainable Value

Positive

Aim to build a great company that delivers sustainable and consistent risk-adjusted financial returns for shareholders.

Inclusive and Responsible Growth

Positive

Efforts are geared to create positive impact on the community in line with Kotak values, pursuing inclusive and responsible growth.

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
Bank Net Interest Margin (NIM)4.53% in Q1FY27Stabilization or improvement in NIM after sequential decline, indicating better asset repricing or lower funding costs.
Bank CASA Ratio40.3% in Q1FY27Reversal of the sequential decline to maintain a strong low-cost funding base and competitive advantage.
SMA-2 Accounts₹ 249 cr as of June 30, 2026Trends in early delinquency indicators to assess potential future asset quality pressures and credit costs.
Unsecured Retail Advances as % of Net Advances8.8% as of June 30, 2026Growth trajectory and asset quality performance within this segment, given its higher risk profile.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

56Neutral

SMA20 +4.7% / mo · MACD + · near 52W low

Stock trend: 56
Sector RS:

Technical chart

KOTAKBANKdaily · 1Y · AUTO+4.2%
Latest close ₹424.50 on 2026-09-04
Bar
+0.7%
RSI
69
MACD hist
1.92
52W pos
4%
2026-09-04O ₹421.65H ₹425.95L ₹421.65C ₹424.50Vol 94.1L sh
₹319.75₹461.39₹603.03₹744.67₹886.3152L424.502026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Mixed signals

Signals are conflicting — long-term trend down. RSI 69. Wait for confirmation.

  • Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
  • SMA20 rising (~4.5% over last month) — short-term momentum positive.
  • RSI(14) at 69 — falling, no extreme reading.
  • MACD above signal but histogram contracting — bullish momentum cooling.
  • 81% off 52W high · 23% above 52W low.

Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.

Nifty 500 leadership

Relative Strength & Trend Stage

3
RS percentile
Stage 3 Topping
1M return
+8.6%
3M return
+11.2%
6M return
+13.1%
1Y return
-79.0%
RS 1D
-1
RS 20D
+1
Sector rank
#9
Industry rank
#10
Stage evidence
  • 80.9% below the 52-week closing high after prior strength.
  • The 30-week proxy has stalled (-5.9% over 20 sessions).
  • Price has not yet confirmed a full Stage 4 downtrend.
50-DMA
price above
200-DMA
price below
Sector
neutral
Industry
neutral
Relative-strength line vs Nifty 500 (base 100)
264 observations
04 Sept 2026Value 21.03+0.81%
14396388112Aug 25Dec 25Apr 26Sept 2621
RS vs Nifty 50021

Valuation & score drivers

U-Score 28 · OVERVALUED · pillar breakdown, sector model, fair-value anchor

28U-SCORE
Distress Watch

Fundamental score breakdown

OVERVALUED
Valuation6/30
Growth10/25
Quality1/20
Balance Sheet1/15
Cash Flow7/10
Piotroski
5/9 (+3)
Penalties
0
Raw sum
28

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

28/100 · OVERVALUED

Positive drivers

  • FCF yield is supportive at 6.0%.
  • Fair-value margin of safety is positive at 25.0%.
  • Cash flow contributes 7/10 to the score.

Main drags

  • Altman Z is 1.6, in distress territory.
  • Quality is weaker at 1/20; verify the latest quarterly trend.
  • Balance sheet is weaker at 1/15; verify the latest quarterly trend.
Sector valuation model

Bank valuation: P/B adjusted for ROE and asset quality

Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.

Bank P/B
Primary lens
Price/book and ROE/ROA, not trailing PE alone.
Secondary checks
Capital adequacy, credit cost, NPA trend, deposit franchise.
Main risk check
Low P/B can be a trap if asset quality or credit cost is worsening.
PE
21.1
PB
2.3
EV/EBITDA
ROE
11.4%
ROCE
7.0%
FCF Yield
6.0%
Debt/Equity
0.2
MoS
+25.0%
Score movement

Stored run vs live recompute

This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.

Stored run: 05 Sept 2026
v4.3-runtime-valuation
Final score
28
Previous: 28
Verdict
OVERVALUED
Previous: OVERVALUED
Margin of safety
+25.0%
Previous: +25.0%

Score history

12 stored score snapshots. Latest stored move: -2 points.

05 Sept 2026
v4.3-runtime-valuation
35
35
29
30
29
29
30
29
29
30
30
28

Factor attribution

No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.

Modelled fair value

Graham Number
₹289.03
-46.9% MoS
Growth-justified P/E
27.8
Growth-justified Value
₹566.1
+25.0% MoS
PEG
1.76

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
72Healthy Trust · low confidenceTrust Lite

Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.

Healthy Trust: Claim history is still being built. It ranks around the 69th percentile of the scored universe and 81st percentile within Financial Services. Main check: financial discipline is weak at 48/100.

Healthy Trust Lite: Promoter pledge is zero. Key concern: Altman Z is 1.58.

Computed 05 Sept 2026
management-trust-v1
156 docs text-extracted · 34 concalls text-extracted
Score band
Healthy Trust

Generally investable credibility. Look for weak sub-scores before increasing position size.

Relative rank
69th percentile

overall median 67 · Financial Services: 81st pctile, median 62 · Large: 47th pctile, median 73

Evidence depth
Financial-only

156 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Healthy Trust · low confidence
What it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.

Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.

Forensic breakdown

Read low sub-scores as due-diligence warnings, not automatic sell signals.

Promoter
78
strong · holding, pledge, alignment
Cash flow
89
strong · profit to cash conversion
Balance sheet
55
watch · leverage and solvency
Discipline
48
watch · capital discipline
Results
87
strong · quarterly consistency

Trust positives

  • Promoter pledge is zero.
  • FCF yield is 6.1%.
  • 5 years of positive FCF.
  • 4/4 latest quarters had positive YoY revenue growth.

Trust risks

  • Altman Z is 1.58.
  • ROCE is low at 7%.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
21.10
P/B
2.33
EV/EBITDA
Market Cap
422278.00Cr

Profitability

ROE
11.40%
ROCE
6.98%
ROA
2.02%
Dividend Y
0.15%

Growth (CAGR)

Revenue 5Y
16.00%
EPS 5Y
14.00%
Revenue 3Y
18.00%
EPS 3Y
9.00%

Balance Sheet

Debt/Equity
0.17
Interest Coverage
Altman Z
1.58
Book Value
182.00

Cash Flow

FCF Yield
6.05%
FCF Positive Y
5/5
OCF
41727.00 Cr
EPS TTM
20.40

Shareholding

Promoter Hold
25.87%
Promoter Pledge
0.00%
Momentum 52W
73%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
No data

Net Profit

₹ Cr
No data

Return on Equity

%
No data

Peers

Business-comparable names in Financial Services, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.