Bank of Maha Q1 FY27 Results (NSE: MAHABANK)
Signal: Earnings grew
The read
Bank of Maharashtra delivered a strong YoY profit growth of 34.5% in Q1FY27, driven by 21.3% operating profit expansion and a one-off ₹250 Cr reversal of COVID provisions. Asset quality improved (GNPA 1.45%), capital adequacy remained high at 18.64%, but revenue growth slowed to 13.9% from 20.1% a year ago, and sequential profit dipped 1.1%. The provision reversal inflates earnings quality, warranting caution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | 9,06,353 lakh | 15.0% | 4.3% |
| EBIT | 3,11,763 lakh | 21.3% | |
| Net profit | 2,02,332 lakh | 34.5% | |
| EPS | ₹2.63 | 34.2% | |
| EBIT margin | 34.4% |
P&L walk
Total income grew 15% YoY, operating profit expanded 21.3%, and PAT after minority rose 34.5% to ₹2,023 Cr, helped by a ₹250 Cr reversal of COVID provisions. NII growth of 14.5% and stable credit costs supported earnings.
Segments
Retail and Corporate/Wholesale banking together contributed 86% of segment revenue and the majority of segment profit. Treasury profit declined YoY but remained positive. Overall segment profits were healthy, with no loss-making segments.
Key positives
- PAT grew 34.5% YoY to ₹2,023 Cr, supported by 21.3% operating profit growth.
- Asset quality improved: GNPA ratio stable at 1.45% (down from 1.74% YoY), NNPA at 0.13%.
- Operating margin expanded 180bps YoY to 34.42%; cost-to-income improved to 18.55%.
- Capital adequacy healthy at 18.64%, above regulatory requirements.
Key concerns
- Q1 PAT includes ₹250 Cr reversal of COVID contingency provisions – a one-off that boosted profit by ~12%.
- Sequential PAT declined 1.1% from Q4FY26 despite revenue growth.
- Revenue growth decelerated to 13.9% YoY (from 20.1% in Q1FY26), indicating slowing loan growth.
- Tax expense more than doubled YoY, normalizing from a low base.
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