Dhanlaxmi Bank Q2 FY27 Results (NSE: DHANBANK)
Signal: Earnings grew
The read
The key inflection is operating profit acceleration: it rose 147.6% YoY to ₹6,982 lakh and operating margin expanded 672bps to 13.46% as income grew 24.0% while operating expenses grew 11.5%; the quality of the trajectory is reinforced by gross NPA improving to 1.76% from 3.10% and net NPA to 0.45% from 1.12%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹518.6 Cr | +24.0% | +7.1% |
| EBIT | ₹69.82 Cr | +147.6% | |
| Net profit | ₹48.55 Cr | +109.3% | |
| EPS | ₹1.23 | +108.5% | |
| EBIT margin | 0% |
P&L walk
Standalone operating profit rose 147.6% YoY to ₹6,982 lakh as total income grew 24.0% and operating expenses grew only 11.5%; PAT rose 109.3% to ₹4,855 lakh, supported by lower sequential provisions and improving asset quality.
Segments
Retail Banking remained the main earnings driver with revenue of ₹29,221 lakh, up 22.8% YoY, and segment result of ₹4,192 lakh, up 132.2%; Corporate/Wholesale Banking turned profitable at ₹1,018 lakh versus a ₹346 lakh loss YoY, while Treasury result declined 21.1% to ₹824 lakh.
Key positives
- Net interest income rose 32.3% YoY to ₹18,775 lakh, outpacing 24.0% total-income growth as interest expense grew 17.3% versus 22.8% growth in interest earned.
- Operating margin expanded 672bps YoY to 13.46%; operating profit grew 147.6% while operating expenses grew 11.5%, with employee cost growth at 10.5%.
- Asset quality improved materially: gross NPA fell to 1.76% from 3.10% YoY and net NPA to 0.45% from 1.12%, with provision coverage at 92.86%.
- Retail Banking result rose 132.2% YoY to ₹4,192 lakh, while Corporate/Wholesale Banking moved from a ₹346 lakh loss to a ₹1,018 lakh profit.
- Advances grew 23.1% YoY to ₹15,73,828 lakh and deposits grew 20.1% to ₹20,55,148 lakh, supporting balance-sheet expansion.
Key concerns
- Other income grew 37.3% YoY to ₹4,745 lakh, faster than total income, and H1 disclosures included ₹1,609 lakh of recoveries from technically written-off accounts and ₹1,594 lakh of processing charges; recurring operating momentum should be monitored separately.
- Treasury segment result declined 21.1% YoY to ₹824 lakh despite revenue growth of 8.9%, leaving retail and corporate/wholesale banking to carry the earnings improvement.
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