Macquarie sees strong earnings recovery for banks, picks 5 stocks to outperform
Kotak Mahindra Bank is in focus in a quarterly results development for FY28.
30 Sept 2026 · ET Stocks, Economic Times Markets
Macquarie expects Indian banks to deliver 18% EPS growth in FY28, supported by higher margins, stronger loan demand, easing liquidity pressures and stable asset quality. The brokerage upgraded Bank of Baroda, Kotak Mahindra Bank and select financial stocks.
Key facts
- Period
- FY28
The analysis
Kotak Mahindra Bank reported movement of 18% for FY28. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +1.9% on the day at ₹440.00, and has returned +15.3% over three months. It is trading close to its 52-week high, so expectations were already elevated going in. The banks sector has moved -4.0% over the same period, so Kotak Mahindra Bank is running 19.3 points ahead of its peers.
For Kotak Mahindra Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
- Rate decisions ripple straight into banks, NBFCs and every rate-sensitive sector — from real estate to autos.
Market context
- The company directly in focus is KOTAKBANK.
- Sector exposure: Banks.
- The immediate tone of coverage reads positive.
In this story
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