Dhanlaxmi Bank Q2 FY27 Net Profit Surges 109% YoY to ₹48.5 Crore; Asset Quality Improves

Key numbers

P/E TTM	12.22Sector: 19.73
Market Cap	₹1411.44 CrSmall Cap
1Yr Price Change	35.2%Outperforming
RSI	60.95Neutral Zone

Key highlights

• Net profit reached ₹48.5 crore, representing a 109.1% increase over Q2 FY26 and a 94.8% sequential growth
• Total income stood at ₹519 crore for Q2 FY27, up from ₹418 crore in the corresponding quarter last year
• Operating margin expanded significantly to 12.4% in Q2 FY27 from 5.5% in the year-ago period
• Gross Non-Performing Assets (NPA) ratio improved to 1.76% from 3.10% in September 2025
• Capital Adequacy Ratio (Basel III) remained robust at 18.86% as of September 30, 2026

Income Growth and Margin Expansion

Dhanlaxmi Bank witnessed a steady rise in its operational scale during Q2 FY27, with revenue from operations reaching ₹471 crore compared to ₹384 crore in the same period last year. Total income, including other income of ₹47.5 crore, hit ₹519 crore for the quarter. This topline growth was accompanied by improved profitability as the operating margin surged to 12.4%, up from 7.3% in the previous quarter.

The bank's profit before tax stood at ₹64.1 crore, a notable jump from ₹23.2 crore in Q2 FY26, reflecting enhanced yield on advances and efficient management of interest expenditures.

Asset Quality and Segment Revenue

• Retail Banking segment revenue contributed ₹292.21 crore to the total during the September quarter
• Corporate and Wholesale Banking segment generated revenue of ₹141.85 crore
• Treasury operations reported revenue of ₹80.75 crore for Q2 FY27
• Gross NPA decreased to ₹281.28 crore, representing 1.76% of gross advances
• Net NPA ratio stood at 0.45%, down from 1.12% in the previous year's second quarter
• Provision Coverage Ratio (PCR) including technical write-offs was recorded at 92.86%

Capital Strength and Regulatory Compliance

The bank maintains a healthy capital position with a Capital Adequacy Ratio (CAR) of 18.86% under Basel III norms, well above the regulatory requirements. As per Note 4 of the filing, the bank has discontinued the maintenance of the Investment Fluctuation Reserve (IFR) following updated RBI directions, transferring the existing balance of ₹30.68 crore to the accumulated Profit and Loss Account balance during the preceding quarter. This robust capital base, combined with a Piotroski score of 7, signals steady internal strength as the bank navigates a competitive interest rate environment.

Board Approval and Reporting

The results/reports were approved and taken on record by the Board of Directors of the Bank at its meeting held on October 26, 2026.

What to watch next

• Board meeting to consider Q3 FY27 financial results in January 2027
• Expansion of Digital Banking Units (DBU) as sub-segments under Retail Banking
• Progress of projects under implementation, which stood at ₹150.81 crore as of Sept 2026

Dhanlaxmi Bank · financial snapshot

Share price	₹35.76
Market capitalisation	₹1,411.44 Cr
Revenue (annual)	₹1,601.48 Cr
Net profit (annual)	₹102.75 Cr
Revenue (latest quarter)	₹449.36 Cr+1.42% vs previous quarter
Net profit (latest quarter)	₹24.91 Cr-42.72% vs previous quarter
P/E (TTM)	12.22×Sector 19.73×
Promoter holding	0%0.00% QoQ
FII holding	14.09%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.