Dhanlaxmi Bank Limited Q2 FY27 Results

Dhanlaxmi Bank's standalone net profit for Q2 FY27 came in at ₹48.55 Cr, up 109% year-on-year from ₹23.20 Cr and up 95% sequentially from ₹24.91 Cr in Q1 FY27. Total income rose 24.1% YoY to ₹518.60 Cr (up 7.1% QoQ), with interest earned at ₹471.15 Cr (+22.8% YoY) and other income at ₹47.45 Cr (+37.4% YoY). Profit before tax of ₹64.13 Cr was up 176% YoY, basic EPS was ₹1.23 against ₹0.59 a year ago.

The margin trajectory is expanding on both measures: net profit margin rose to 9.36% from 5.55% YoY (5.14% in Q1 FY27), and operating margin rose to 13.46% from 6.74% YoY (10.62% in Q1 FY27). The lift came largely from the other-income line, which grew faster than the balance sheet, combined with operating expenses rising only about 11.5% YoY (₹165.38 Cr vs ₹148.32 Cr) against 22.8% revenue growth — classic operating leverage rather than a one-off gain, since the filing's exceptional-items row is nil for both the current and year-ago quarters. One caveat on comparability: Q2 FY26 booked virtually no tax expense, while this quarter carried a normal ₹15.58 Cr tax charge, so the 109% PAT growth actually understates the underlying improvement in pre-tax earnings (+176%) — the tax base normalising this year is a drag on the YoY PAT comparison, not an inflator.

The stock went into the print at ₹35.92, up 19.3% over the past month of trading.

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

No formal management guidance is on record for this name and no analyst consensus or brokerage preview for this specific quarter could be located — coverage of this small-cap bank is thin, so vsStreet is marked unknown rather than guessed. Asset quality improved materially alongside the profit print: gross NPA fell to 1.76% from 3.10% a year ago (1.82% in Q1 FY27), net NPA fell to 0.45% from 1.12% YoY, and the provision coverage ratio stood at 92.86%. Capital Adequacy Ratio rose to 18.86% from 17.81% YoY. The Corporate/Wholesale Banking segment swung to a ₹10.18 Cr profit from a ₹(3.46) Cr loss a year ago, after posting losses in three of the last five quarters shown in the segment table — a segment worth watching for durability. The bank's own September 2026 business update (total business up 21% YoY to ₹36,500 Cr) lines up with this filing's deposits of ₹20,551 Cr (+20.2% YoY) and advances of ₹15,738 Cr (+23.2% YoY). Separately, the bank discontinued its Investment Fluctuation Reserve per RBI's May 2026 directive, moving a ₹30.68 Cr balance into P&L reserves — but that happened in Q1 FY27, not this quarter. No separate management press commentary accompanied this filing beyond the standard board-meeting cover letter.