Bank of Maharashtra Q2 FY27: Consolidated PAT Jumps 41% YoY to ₹2,310 Cr

Bank of Maharashtra's consolidated group net profit rose 41.4% YoY to ₹2,309.97 Cr for Q2 FY27 (quarter ended September 30, 2026), with the amount attributable to shareholders — after a ₹173.48 Cr share-of-loss from associate Maharashtra Gramin Bank — at ₹2,136.48 Cr (EPS ₹2.78, basic, not annualised). Both read above the ₹2,050–2,100 Cr on-plan range flagged in our pre-result preview, a beat on the Street's working number; standalone PAT of ₹2,309.59 Cr (EPS ₹3.00) shows the core bank's profitability nearly matches the consolidated group figure before the associate drag. Interest earned (revenue) grew 20.7% YoY and 7.1% QoQ to ₹8,606.39 Cr, taking total income to ₹9,735.67 Cr.

The margin trajectory is a YoY expansion story rather than a sequential one: net profit margin improved to 22.34% from 20.83% a year ago (flat versus 22.32% in Q1), while operating margin rose to 33.42% from 32.59% YoY but slipped from 34.42% in Q1 — roughly 100bps of sequential compression. The swing sits on provisioning: the bank booked its first ₹500 Cr 'anticipated ECL impact' charge this quarter (nil in Q1, per note 14), partly cushioned by a ₹250 Cr reversal from its COVID-19 contingency buffer (₹510 Cr of the buffer remains, down from ₹760 Cr in Q1). Total provisions (other than tax) nonetheless fell YoY to ₹654.45 Cr from ₹755.87 Cr, aided by continued asset-quality gains — gross NPA fell to 1.25% from 1.72% YoY (1.45% in Q1) and net NPA to 0.12% from 0.18% YoY, with provision coverage at 98.53%. Separately, 63 fraud cases aggregating ₹308.19 Cr were reported during the quarter, netting a ₹273.42 Cr loss that is 100% provided (note 11).

The stock went into the print at ₹74.8, down 11.1% 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.

Against management's prior guidance — reiterated confidence on 18% FY27 loan growth, healthy NIMs and sub-1% credit cost — the quarter's asset-quality and provisioning trends track in line (guidance met); the results table does not disclose a standalone NIM figure, leaving the ~2.85–2.95% range flagged pre-result unconfirmed pending the investor presentation. The quarter's governance calendar included a new Chief Compliance Officer (Devdatta Rokade, Oct 1), the CVO's retirement (Sep 30), an MCLR revision across tenors (Sep 29) and a GlobeTrend ESG rating (Oct 19) — none of which show up directly in the P&L. More consequential was a USD 500 Mn unsecured foreign-currency bond raise via GIFT IBU during the quarter (note 9) and the redemption of ₹500 Cr Basel III Tier-II bonds on maturity in H1 (note 8), alongside the transfer of the discontinued Investment Fluctuation Reserve (₹1,091.10 Cr) into retained profit under an RBI circular (note 5). On the consolidated bottom line, associate Maharashtra Gramin Bank swung to a ₹173.48 Cr loss contribution from a ₹2.78 Cr profit in Q1 and ₹35.11 Cr a year ago — the sole reason attributable consolidated PAT (₹2,136.48 Cr) trails the standalone number, despite standalone and group pre-adjustment profit being nearly identical.