Kotak Mahindra Bank’s standalone net profit rose 29.47% year-on-year to ₹4,211.97 crore in Q2 FY27, while its net interest margin (NIM) declined to 4.31% from 4.54% a year earlier. Consolidated profit after tax, including the group’s share of associate profits, increased 26.34% to ₹5,645.38 crore. Before the results were announced on Saturday, October 24, shares had fallen 1.49% to ₹430.50 on Friday. End-of-day futures data showed a 64.29% rollover rate, below a 68.2% comparison benchmark, while aggregate futures open interest edged down 0.07%. The first post-results session on Monday, October 26, will test whether investors focus more on earnings growth or margin pressure ahead of the October 27 expiry.
Need to Know
- Standalone profit: ₹4,211.97 crore, up 29.47% year-on-year.
- Consolidated profit: ₹5,645.38 crore, up 26.34%, including associate profits.
- Margin pressure: NIM fell to 4.31% from 4.54% in Q2 FY26 and 4.53% in Q1 FY27.
- Pre-results share price: Kotak Bank closed at ₹430.50 on Friday, down 1.49%.
- Futures positioning: Rollover stood at 64.29%, against a 68.2% comparison benchmark. Aggregate futures OI declined 0.07%.
- Next market trigger: Monday’s post-results session comes one day before the October stock futures expiry.
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Kotak Bank Q2 Results: Profit Growth Accelerates
Kotak Mahindra Bank reported higher profitability for the quarter ended September 30, 2026. Both standalone and consolidated profit increased year-on-year, while net interest income and operating profit before provisions also recorded double-digit growth.
Kotak Mahindra Bank Q2 FY27 Results
| Financial metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Consolidated profit after tax, including associate profits | ₹5,645.38 crore | ₹4,468.27 crore | +26.34% |
| Consolidated profit before associate profits | ₹5,634.07 crore | ₹4,445.94 crore | +26.72% |
| Standalone net profit | ₹4,211.97 crore | ₹3,253.33 crore | +29.47% |
| Standalone net interest income | ₹8,458.97 crore | ₹7,310.74 crore | +15.71% |
| Standalone operating profit before provisions and contingencies | ₹6,382.20 crore | ₹5,268.27 crore | +21.14% |
| Standalone provisions and contingencies | ₹803.56 crore | ₹947.42 crore | −15.18% |
Source: Kotak Mahindra Bank’s unaudited standalone and consolidated financial results for the quarter ended September 30, 2026.
The two consolidated profit figures use different treatments of associate profits. The ₹5,645.38 crore figure includes the group’s share of profits from associates, while ₹5,634.07 crore excludes that contribution.
Standalone net interest income increased 15.71% to ₹8,458.97 crore. Operating profit before provisions and contingencies rose 21.14% to ₹6,382.20 crore, indicating that the improvement extended beyond the headline net-profit figure.
However, stronger earnings did not coincide with an improvement in the reported net interest margin.
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NIM Falls to 4.31%: The Key Counterpoint to Profit Growth
Kotak Bank’s net interest margin declined on both a year-on-year and sequential basis.
| NIM comparison | Reported NIM |
|---|---|
| Q2 FY26 | 4.54% |
| Q1 FY27 | 4.53% |
| Q2 FY27 | 4.31% |
| Year-on-year change | −23 basis points |
| Sequential change | −22 basis points |
The bank attributed the moderation in NIM largely to excess liquidity associated with FCNR-B deposit mobilisation. It reported FCNR-B deposits of ₹55,344 crore, which formed part of the liquidity context discussed in results coverage.
The standalone CASA ratio was reported at 38.2%, below the year-earlier level. CASA represents current and savings account deposits, which are generally a lower-cost source of funding than term deposits.
The combination of higher earnings and lower NIM creates a relevant question for investors: can the bank maintain profit growth if margins remain under pressure? The latest quarter does not, on its own, establish whether the decline will persist.
Loan Growth and Deposits Add Context
Kotak Bank’s standalone balance sheet showed expansion in both advances and deposits as of September 30, 2026.
| Balance-sheet metric | September 30, 2026 | September 30, 2025 | YoY growth |
|---|---|---|---|
| Advances | ₹5,77,294.71 crore | ₹4,62,687.61 crore | +24.77% |
| Deposits | ₹6,51,491.47 crore | ₹5,28,776.02 crore | +23.21% |
Source: Kotak Mahindra Bank’s standalone financial results. These figures are balance-sheet advances and deposits, not average balances.
The increase in advances provides context for the rise in interest income, while deposit growth reflects the expansion of the bank’s funding base.
Nevertheless, balance-sheet growth alone does not establish that margins will recover. The deposit mix and the cost of funding remain important variables to monitor.
Asset Quality Improves, but Sequential Provisions Rise
Kotak Bank’s reported standalone asset-quality ratios improved against the year-earlier quarter.
| Asset-quality indicator | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Gross NPA ratio | 1.04% | 1.39% |
| Net NPA ratio | 0.24% | 0.32% |
Lower gross and net non-performing asset ratios indicate an improvement in the reported asset-quality position.
Standalone provisions and contingencies declined 15.18% year-on-year to ₹803.56 crore from ₹947.42 crore. On a sequential basis, however, provisions rose approximately 20.27% from ₹668.13 crore in Q1 FY27.
The sequential increase does not independently establish a deterioration in credit quality. It is a relevant point to monitor alongside loan growth, asset quality and margin trends.
Kotak Bank F&O Analysis: Rollover at 64.29%
Friday’s derivatives data provides context for how futures positions were distributed across expiries before the bank announced its results.
Kotak Bank shares closed at ₹430.50 on October 23, down ₹6.50 or 1.49% from the previous close of ₹437.00. The October stock futures contract was approaching expiry on Tuesday, October 27.
Futures Open Interest by Expiry
| Contract | Futures open interest | Change in OI | OI change |
|---|---|---|---|
| October 2026 | Approximately 5.60 crore units | −3.08 crore units | −35.48% |
| November 2026 | Approximately 9.00 crore units | +3.05 crore units | +51.28% |
| December 2026 | Approximately 1.09 crore units | +1.88 lakh units | +1.76% |
| All expiries combined | Approximately 15.70 crore units | −1.10 lakh units | −0.07% |
Source: October 23 end-of-day futures data compiled from NSE F&O bhavcopy by StockLearn. Figures are rounded. Open interest is expressed in underlying units rather than in the number of contracts.
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What the Rollover Data Shows
The October contract recorded a sharp decline in open interest, while the November contract registered a substantial increase. October OI fell by approximately 3.08 crore units, compared with an increase of around 3.05 crore units in November OI.
This near-offsetting movement is consistent with substantial position transfer into the next expiry. However, the figures do not prove that every additional November position was rolled over from October; some could represent new positions.
Aggregate futures OI across the three listed expiries was approximately 15.70 crore units, down 0.07%. This distinction matters because the large changes in individual contracts did not translate into a comparable increase in total outstanding futures OI.
Rollover Is Below the Comparison Benchmark
The October 23 end-of-day rollover rate was 64.29%, compared with a 68.2% benchmark for the same stage of the expiry cycle reported by TBTflow.
| Rollover indicator | Reading |
|---|---|
| October 23 rollover | 64.29% |
| Comparison benchmark | 68.2% |
| Difference | −3.9 percentage points |
| Aggregate futures OI change | −0.07% |
Source: TBTflow’s October 23 rollover report and StockLearn’s NSE F&O bhavcopy-based OI data.
The rollover rate measures the share of total futures OI sitting beyond the near-month contract under the reported methodology. The reading was therefore below the comparison benchmark, but it does not prove that traders were uniformly bearish.
The aggregate OI decline was small, and different providers may classify price-and-OI combinations differently. The most defensible interpretation is that positions were shifting across expiries while total outstanding futures OI remained broadly stable.
The rollover figure should be considered alongside price movement and contract-level OI, not treated as a standalone trading signal.
What F&O Traders Should Watch on Monday
Monday, October 26, will be Kotak Bank’s first regular trading session after the Q2 FY27 results announcement. It also comes immediately before the October 27 stock futures expiry.
Three developments will be particularly relevant:
- The earnings response: Whether investors prioritise higher profit and improved asset quality or focus on the fall in NIM.
- Aggregate open interest: Whether total OI begins expanding after Friday’s marginal decline or continues to contract.
- The next-month contract: Whether November OI remains elevated and how new positions change after the results become known.
Friday’s market and derivatives data preceded the earnings announcement. They describe the pre-results setup, not the market’s reaction to the results.
A positive earnings headline does not guarantee a higher opening. Nor does a rollover rate below its benchmark establish that further losses are likely. The next session’s price action and updated OI data will provide a more current indication of how positioning evolves.
Bottom Line
Kotak Mahindra Bank’s Q2 FY27 results showed robust year-on-year profit growth, higher standalone net interest income and improved asset-quality ratios. The counterpoint is the decline in NIM to 4.31%, which leaves a question about the sustainability of earnings momentum.
Futures positioning adds another layer: rollover stood at 64.29%, below the 68.2% comparison benchmark, while October OI fell sharply and November OI rose. Yet aggregate futures OI declined only 0.07%, so the individual-contract movements should not be interpreted as an unambiguous increase in directional bearish exposure.
The key test on Monday is whether investors reward Kotak Bank’s profit growth despite margin pressure—and whether futures positioning changes after the announcement. Neither the earnings figures nor the rollover reading alone establishes the stock’s next direction.
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Disclaimer: This article is for news and educational purposes only and is not investment advice. Futures open interest and rollover figures reflect the October 23, 2026, session before the results announcement. Derivatives positioning does not guarantee future market direction.
