Dhanlaxmi Bank Q1 PAT more than doubles YoY to ₹24.9 Cr; NPAs shrink, but QoQ dips on opex
PAT +104.5% YoY · revenue +22.2% · margins expanding
₹449.36 Cr
+22.2% YoY
₹24.91 Cr
+104.5% YoY
5.14%
+2.1pp YoY
₹0.63
Dhanlaxmi Bank's standalone net profit for Q1 FY27 came in at ₹24.91 Cr, up 104.5% year-on-year from ₹12.18 Cr, on interest income of ₹449.36 Cr (+22.2% YoY). Net Profit Margin expanded to 5.14% from 2.99% a year ago and Operating Margin to 10.62% from 8.18%, helped by provisions falling 24.6% YoY to ₹15.91 Cr and a sharp improvement in asset quality — Gross NPA down to 1.82% from 3.22% and Net NPA to 0.47% from 1.13% a year earlier, with provision coverage at 92.77%. Capital adequacy (CRAR) also improved to 19.19% from 18.26% YoY.
Q1 FY-2027 vs prior quarters
Sequentially, however, profit fell 42.7% from ₹43.49 Cr in Q4 FY26 and both margins compressed (NPM from 8.49%, OPM from 22.19%). The driver is opex, not income: total income was roughly flat QoQ (-5.5% at ₹484.25 Cr vs ₹512.34 Cr) while operating expenses excluding provisions rose to ₹432.80 Cr, pulled up by employee cost jumping 30.9% QoQ to ₹92.98 Cr from ₹71.04 Cr — this nearly halved pre-provision operating profit to ₹51.45 Cr from ₹113.67 Cr. Reported PAT growth of 104.5% YoY also trails the 191.8% rise in PBT because Q1 FY26 carried no tax charge (deferred-tax benefit) whereas this quarter's effective tax rate normalized to about 30%; on a pre-tax basis the underlying operating improvement is larger than the PAT line alone suggests.
The stock went into the print at ₹34.45, up 9.1% over the past month of trading.
For context: revenue is at a 6-quarter high.
Management gives no formal quarterly guidance or outlook on record, and no prior earnings-call commentary is available in our records to check this print against; a web search turned up no dedicated brokerage consensus estimate for this specific quarter for Dhanlaxmi Bank, so the print cannot be benchmarked against street numbers either. The bank's own July 1 business update — total business up 21.12% YoY to ₹35,188 Cr, led by a 75.91% surge in gold loans — is consistent with the topline growth seen here. The quarter also saw a new CFO (Krishnakumar K) and a new Chief Vigilance Officer take charge, transitions that do not bear directly on this result.
W1
Whether employee cost (up 30.9% QoQ to ₹92.98 Cr) stabilizes or keeps compressing pre-provision operating profit (₹51.45 Cr this quarter) in Q2 FY27
W2
Whether the low Q1 provisioning (₹15.91 Cr, lowest of the trailing four quarters) holds given Net NPA is down to 0.47%
W3
Whether the ~30% effective tax rate seen this quarter (vs nil in Q1 FY26) persists, since it will set the base for future PAT growth comparisons
Bank files standalone results only (no consolidated statement). Tax expense was nil in Q1 FY26 (base effect) vs ₹10.63 Cr this quarter, so PBT growth (+192% YoY) outpaces PAT growth (+104% YoY). ₹30.68 Cr from a discontinued Investment Fluctuation Reserve was moved to accumulated P&L balance on the balance sheet this quarter — a reserves reclassification, not a P&L income item, so no PAT adjustment applied.