BFSI Q2 Earnings Preview— Dolat Capital Projects Weak Quarter; Lists Kotak, ICICI Bank, Aptus Among Top Picks

For gold financiers, gold loan growth is expected to be strong at 10% QoQ as higher gold price, healthy new customer acquisitions, and slowdown in unsecured credit aid growth..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Earnings in Q2 FY26 will be impacted by continued moderation in net interest margin, sluggish growth, and muted treasury gains (which had been a savior in Q1 for several banks). Credit costs are expected to remain benign for the larger banking sector, barring some pockets with MFI exposure. Sequential NIM decline should be lower than in Q1, and margins are expected to bottom out in Q2, aided by re-pricing of term deposits and CRR cuts, which should help NIM in the subsequent quarters. Net interest income is expected to be flattish YoY for coverage banks, while pre-provision operating profit to decline by 3% YoY (-14% QoQ) as treasury gains are muted (unlike Q1). Core PPoP to remain flattish YoY/QoQ. PAT is expected to decline by 5% YoY as credit costs normalize at slightly higher levels across large banks. We do not anticipate any significant stress from bank MSME portfolios as exposure is mainly towards > 5 million ticket size, though the segment remains an area of watch. We expect a slight slowdown in growth for affordable housing financiers (5% QoQ/20% YoY), with sequentially higher spreads (by 10-20 bps) and continued normalization in credit costs. Early delinquency trends, however, should improve QoQ. For gold financiers, gold loan growth is expected to be strong at 10% QoQ as higher gold price, healthy new customer acquisitions, and slowdown in unsecured credit aid growth. We expect some yield moderation, which should be offset by improved operating leverage. However, non-gold portfolio mix will continue to moderate, with elevated stress levels across most segments..Click on the attachment to read the full report:.Hyundai Motor India Gets 'Reduce' As HDFC Securities Initiates Coverage — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BFSI Q2 Earnings Preview— Dolat Capital Projects Weak Quarter; Lists Kotak, ICICI Bank, Aptus Among Top Picks

BFSI results preview: earnings in Q2 will be impacted by continued moderation in NIM, sluggish growth, and muted treasury gains, says Dolat Capital.

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