Karur Vysya Bank Q2 FY27 Results Analysis: PAT Jumps 37%, NIM Beats Guidance (KARURVYSYA)
Karur Vysya Bank Ltd reported Q2 FY27 numbers with revenue of Rs. 3,670.21 Cr (+10.54% YoY) and PAT growth of +37.24% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 15, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 3,670.21 Cr (+10.54% YoY) |
| PAT (Q2) | Rs. 787.69 Cr (+37.24% YoY) |
| EBITDA margin | 31.67% (+103 bps YoY) |
| EPS (Q2) | Rs. 8.15 (+37.20% YoY) |
| Market cap | Rs. 32,771.04 Cr |
| CMP | Rs. 339.05 |
Quarter Snapshot
Karur Vysya Bank delivered NIM of 4.50% versus its own FY27 guidance of 3.7–3.8%, with PAT up 37.24% YoY to Rs.787.69 cr and cost-to-income improving to 39.85% against a 45–50% target band. Advances grew 20.43% YoY versus industry ~19% while GNPA fell to 0.69%, and H1 PAT of Rs.1,543 cr already covers 61.5% of full FY26 PAT. The only soft spot is other income declining 15.13% YoY on a prior-year recovery base effect, while deposit growth (15.96%) trailing loan growth lifted the CD ratio to 86.6%.
Key Investment Insights
Key Positives
- NII grew 18.73% YoY to Rs.1,497.37 cr, outpacing interest expended growth of 12.36%
- NIM proxy expanded to 4.50%, above the FY27 guidance of 3.7–3.8% and up from 4.26% (ex-recovery) in Q1 FY27
- PAT grew 37.24% YoY to Rs.787.69 cr; H1 PAT of Rs.1,543.39 cr is 61.5% of full FY26 PAT of Rs.2,510 cr
- Cost-to-income improved to 39.85% from 42.63% YoY, inside the 45–50% target band
- GNPA fell to 0.69% (lowest in series) with NNPA at 0.18% and PCR at 96.13%
- Advances grew 20.43% YoY vs industry ~19%; deposits grew 15.96% YoY with borrowings down 7.74% YoY
- Provisions fell 56.80% YoY to Rs.118.53 cr; ROA at 2.10% annualized vs guidance of 1.7–1.8%
- H1 net CFO of Rs.3,075.36 cr vs Rs.175.33 cr in H1 FY26; free cash flow of Rs.2,999.10 cr
Risk Factors
- Other income declined 15.13% YoY to Rs.434.81 cr, a base effect from Q2 FY26 recoveries of Rs.139 cr interest recovery and Rs.205 cr other income
- Deposit growth of 15.96% YoY lagged advances growth of 20.43%, pushing the CD ratio from 83.4% to 86.6%
- Capital adequacy ratio declined to 17.97% from 18.61% in Q1 as advances growth outpaced capital accretion
- Effective tax rate rose to 24.53% from 22.75% a year ago
- Cost of funds is rising with deposit repricing; interest expended grew 6.85% QoQ
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.