Kotak Mahindra Bank Shares Plunge 5% After Q3 Results Miss Estimates; Buy, Sell, or Hold?

• Kotak Mahindra Bank shares dropped over 5% to INR 400.5, marking the biggest intraday fall since July 2025, following weaker-than-expected December quarter results.
• The bank reported a standalone net profit of INR 3,446.14 crore for Q3, up 4% year-on-year, but fell short of market expectations of INR 3,572 crore.
• Net Interest Income (NII) grew over 5% to INR 7,565 crore, but Net Interest Margin (NIM) declined to 4.54% from 4.93% a year ago.
• Asset quality improved, with Gross NPA falling to 1.30% and Net NPA to 0.31% in the December quarter.
• Brokerage firms like HDFC Securities and Motilal Oswal maintain 'Buy' ratings with target prices of INR 495 and INR 500 respectively, despite concerns over flat margins and higher operating expenses.

Why It Matters: Kotak Mahindra Bank shares fell sharply due to Q3 results missing estimates, but brokerages remain bullish long-term.