Bank of Maha H1FY27 Results (NSE: MAHABANK)
Signal: Earnings grew
The read
The operating trajectory improved in H1FY27: total income rose 18.6% YoY to ₹1879870 lakh, operating profit rose 26.1% to ₹648584 lakh and operating margin expanded 205bps to 34.50%. However, PAT growth of 34.2% to ₹432978 lakh was amplified by the ₹250 crore COVID-provision reversal, while negative operating cash flow of ₹2258182 lakh warrants monitoring despite improved asset quality with GNPA at 1.25% and NNPA at 0.12%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹18,798.7 Cr | +18.6% | N/A |
| EBIT | ₹6,485.84 Cr | +26.1% | |
| Net profit | ₹4,329.78 Cr | +34.2% | |
| EPS | ₹5.63 | +34.4% | |
| EBIT margin | 0% |
P&L walk
Standalone total income increased to ₹1879870 lakh, +18.6% YoY, while operating profit rose to ₹648584 lakh, +26.1% YoY, helped by operating-margin expansion to 34.50%; PAT increased to ₹432978 lakh, +34.2% YoY, with the ₹250 crore COVID-provision reversal a material one-off.
Segments
Retail Banking was the largest earnings contributor at ₹130678 lakh of segment profit, +92.8% YoY from ₹67772 lakh, while Corporate/Wholesale Banking profit rose 71.2% to ₹104922 lakh; Treasury Operations dragged momentum as profit fell 35.3% to ₹28034 lakh, and Digital Banking remained loss-making at ₹42 lakh.
Key positives
- Operating profit increased 26.1% YoY to ₹648584 lakh, outpacing total-income growth of 18.6%, while operating margin expanded 205bps to 34.50%.
- Asset quality improved: GNPA declined from 1.72% to 1.25% YoY and NNPA declined from 0.18% to 0.12%.
- Retail Banking segment profit rose 92.8% YoY to ₹130678 lakh and Corporate/Wholesale Banking profit rose 71.2% to ₹104922 lakh.
- Interest expended increased 16.7% YoY to ₹891680 lakh, below the 18.6% growth in total income.
Key concerns
- ₹250 crore of COVID-related contingency provisions was reversed during the quarter, making part of the ₹432978 lakh H1 PAT and 34.2% YoY growth non-recurring.
- Operating cash flow was negative ₹2258182 lakh in H1FY27 despite PAT of ₹432978 lakh, mainly because operating assets increased by ₹2837874 lakh.
- Treasury Operations segment profit declined 35.3% YoY to ₹28034 lakh, while Digital Banking remained loss-making at ₹42 lakh.
Research and educational content only. Not investment advice.