Bank of Maharashtra Q1 PAT ₹2,021 Cr up 27%; one-off flatters core to ~13%, NIM softens QoQ

Bank of Maharashtra reported consolidated net profit of ₹2,020.54 Cr for Q1 FY27 (standalone ₹2,020.19 Cr — the two are effectively identical), up 26.8% YoY from ₹1,593.09 Cr but essentially flat sequentially (+0.3% QoQ vs ₹2,014.46 Cr). The headline growth is flattered by a one-off: the bank reversed ₹250 Cr of COVID-19 contingency provisions during the quarter (it still holds a ₹760 Cr buffer). Stripping the write-back out on a like-for-like basis, underlying PAT growth is roughly +13% YoY — broadly in line with the ~14% topline expansion rather than the reported 27%.

The clean operating story is stronger than the flattered bottom line: pre-provision operating profit rose 21.3% YoY to ₹3,117.63 Cr and net interest income grew ~14.5% to ₹3,770 Cr, on interest earned of ₹8,034.65 Cr (+13.9% YoY) and total income of ₹9,063.53 Cr (+15% YoY). That said, margins softened sequentially — NIM eased to 3.79% from 3.95% in Q4 and 3.85% a year ago — the "sequential margin softness" flagged around the board meeting; the YoY lift in reported net profit margin (to 22.32% from 19.31%) owes partly to the provision reversal and a lower year-ago tax base, not pure spread expansion. The July 24 MCLR revision and deposit repricing are the swing factors for the NIM trajectory from here.

The stock went into the print at ₹80.26, up 2.3% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

Balance-sheet momentum ran well ahead of guidance. Global advances grew ~27% YoY to ₹3.06 lakh Cr against management's 18% FY27 loan-growth guide, deposits rose ~13% to ₹3.44 lakh Cr, and total business was up 19% to ₹6.51 lakh Cr. Asset quality improved further — gross NPA down to 1.45% (from 1.74% YoY), net NPA at 0.13%, PCR 98.55%, ROA 1.90% and CAR 18.64% — confirming the confident, low-risk tone management struck on the results call. We could not find a published pre-result consensus estimate; post-result coverage characterised the print as "robust" and the stock rallied ~3% on the day. Board/management churn was minor and non-financial (director appointment on Aug 13; CCO resignation on Jul 24 with a successor pending).