Upgrades

Healthy credit growth driven by secured segments; deposits growth led by healthy growth in CASA deposits

PAT beat our estimates by 5% mainly aided by govt-guaranteed SRs; return ratios stay steady with RoA/RoE of 1.1/17.3% in FY25

Sales +3% above Bloomberg 4QFY25 consensus/our est. EBITDA was in line with cons. and 1% above our est

Net Interest Income (NII) for Q4FY25 increased by 2.7% YoY (+3.2% QoQ) to INR 4,27,746 Mn, in-line with our estimates. PPOP grew by 8.8% YoY (+32.8% QoQ) to INR 3,12,860 Mn., 16.2% above our estimates driven by supported by ~2x QoQ growth in non-interest income.

Indian Bank (INBK) reported a 4QFY25 PAT of INR29.6b (up 31.6% YoY/ 3.6% QoQ; 4% beat), driven by lower provisions and higher other income. NII grew 6.2% YoY/flat QoQ (in line) at INR63.9b. NIM dipped 8bp QoQ to 3.37% during the quarter.

IOCL’s 4QFY25 EBITDA was a 110% beat on est., driven by higher-thanestimated GRM (USD8/bbl) as well as marketing margins (INR5.9/lit). With tax rate coming in below est., resultant PAT stood 5x above est. at INR72.6b.

Kotak Mahindra Bank (KMB) reported a standalone 4QFY25 PAT of ~INR35.5b (6% miss on MOFSLe), because of higher provisions (to shore up PCR, partly due to AIF provisions of INR560m). Consol. PAT stood at INR49b (5% QoQ growth and 8% YoY decline) in 4QFY25.

Kotak Mahindra Bank (KMB) reported in-line healthy PAT at Rs35.5bn/2.2% RoA, aided by higher other income and partly offset by higher provisions – such provisions were for further shoring-up PCR closer to that of large peers at 78% and AIF provisions (Rs1bn).

We upgrade Marico to BUY from Add, and raise Mar-26E TP by ~16% to Rs810 (from Rs700), given FY25 management aspirations have been already realized and execution is continually improving.

SBI posted a slightly soft quarter, as credit growth moderated to 12.4% YoY due to pre-payments in the corporate book, while higher opex (staff cost + deposit insurance) and provisions (std assets + investment + PLI incentive) caused a 5% earnings miss, with PAT at Rs186bn/1.1% RoA.