Quarterly results for Dhanlaxmi Bank Ltd
Dhanlaxmi Bank – Q4 FY26 Results Summary
Announcement Date: 28 April 2026
Financial Performance
Units: All figures below are in INR Crores (converted from Lakhs: ₹1 Cr = ₹100 Lakhs).
Excise Duty/VAT: No excise duty or VAT line item in revenue; reported figures used as-is.
Key Numbers (Q4 FY26 vs Q3 FY26 vs Q4 FY25)
- Interest Earned: ₹443.05 Cr (Q4 FY26) | ₹407.06 Cr (Q3 FY26) | ₹350.62 Cr (Q4 FY25)
- Other Income: ₹69.29 Cr | ₹49.25 Cr | ₹43.09 Cr
- Total Income: ₹512.34 Cr | ₹456.31 Cr | ₹393.71 Cr
- Interest Expended: ₹256.00 Cr | ₹252.84 Cr | ₹216.39 Cr
- Operating Expenses: ₹142.67 Cr | ₹162.33 Cr | ₹138.64 Cr
- Employee Cost: ₹71.04 Cr | ₹87.22 Cr | ₹71.05 Cr
- Other Operating Expenses: ₹71.63 Cr | ₹75.11 Cr | ₹67.59 Cr
Operating Profit (Pre-Provisions)
- Operating Profit: ₹113.67 Cr (Q4 FY26) vs ₹41.14 Cr (Q3 FY26) vs ₹38.68 Cr (Q4 FY25)
- Operating Margin: 22.19% (Q4 FY26) vs 9.02% (Q3 FY26) vs 9.82% (Q4 FY25)
Net Profit
- Net Profit: ₹43.49 Cr (Q4 FY26) vs ₹23.88 Cr (Q3 FY26) vs ₹28.98 Cr (Q4 FY25)
- Net Profit Margin: 8.49% (Q4 FY26) vs 5.23% (Q3 FY26) vs 7.36% (Q4 FY25)
- EPS (Basic/Diluted): ₹1.10 (Q4 FY26) vs ₹0.61 (Q3 FY26) vs ₹0.85 (Q4 FY25)
Balance Sheet (as of 31 Mar 2026 vs 31 Mar 2025)
- Deposits: ₹18,642.88 Cr (↑16% YoY)
- Advances: ₹14,918.06 Cr (↑25% YoY)
- Borrowings: ₹736.63 Cr (↑>3x YoY)
- Net Worth: ₹12,645.5 Cr (↑7% YoY)
- Capital Adequacy Ratio: 18.92% (vs 16.12% YoY)
What’s Different This Quarter
-
Operating Profit and Margin Surge:
Operating profit more than doubled QoQ and YoY, with margin at 22.2%—the highest in at least 16 quarters (historical range: 6–13%). This is a sharp break from the 9–10% margin range seen in recent quarters. -
Net Profit at Multi-Year High:
Net profit of ₹43.5 Cr is the highest since at least Dec 2021, with net margin up 313 bps QoQ and 113 bps YoY. -
Growth Acceleration:
- Total Income: +30% YoY, +12% QoQ (vs 8Q avg. ~10% YoY)
- Advances: +25% YoY (vs 8Q avg. ~15%)
- Deposits: +16% YoY (vs 8Q avg. ~10%)
- Other Income: +61% YoY, +41% QoQ (boosted by PSL certificate sales and higher fee income)
-
Cost Structure:
- Employee Costs: Down 19% QoQ (₹71.04 Cr vs ₹87.22 Cr), reversing the Q3 spike; now in line with historical averages.
- Other Operating Expenses: Down 5% QoQ.
- Interest Expended: Up 18% YoY, but slower than income growth, supporting margin expansion.
-
Asset Quality:
- Gross NPA: Down to 1.89% (lowest in at least 16 quarters; was 2.98% a year ago)
- Net NPA: Down to 0.51% (vs 0.99% YoY)
- Provision Coverage Ratio: 92.46% (very high)
- Provisions: Up QoQ and YoY, but offset by higher pre-provision profit.
-
Segment Trends:
- Retail Banking: Revenue up 67% YoY; EBIT margin improved to 10.8% (vs 7.3% YoY, 3.3% QoQ).
- Corporate Banking: Returned to profit (EBIT margin 11.8%) after several loss-making quarters.
- Treasury: EBIT margin surged to 31.4% (vs 8.7% YoY, 24.1% QoQ).
-
Balance Sheet:
- Borrowings: Jumped to ₹736.6 Cr (from ₹200 Cr YoY), supporting loan growth.
- Capital Adequacy: At 18.92%, now at a multi-year high, providing strong buffer for growth.
Historical Context
- Seasonality: Q4 is typically the strongest quarter, but this Q4’s operating margin and profit are well above historical Q4 averages (margin: 22.2% vs Q4 avg. ~10%).
- Growth Momentum: YoY income growth of 30% is the fastest in at least 8 quarters (prior 4Q avg. ~12%).
- Margin Trends: Operating margin at 22.2% is a record high (historical range: 6–13%).
- Cost Ratios: Employee cost/revenue at 13.9% (vs 18–22% historical), reflecting improved efficiency.
- Asset Quality: GNPA and NNPA at lowest levels in the available data.
Company Updates
- Management Commentary:
- Focus on asset quality improvement and capital strengthening.
- No material impact from new labour codes.
- No changes in accounting policy or exceptional items.
- Corporate Actions:
- NPA sale to ARC (₹44.25 Cr principal, ₹3.5 Cr consideration).
- Projects under implementation increased; resolution plans implemented in 6 accounts.
- Guidance: No explicit forward guidance provided.
Summary:
Dhanlaxmi Bank delivered a standout Q4 FY26, with record operating margins, multi-year high profits, and sharply improved asset quality. Growth in advances and deposits accelerated, while cost ratios improved. Retail and treasury segments drove profitability, and corporate banking returned to profit. The bank’s capital position is now at a multi-year high, supporting further growth. This quarter marks a clear positive inflection in both profitability and balance sheet strength compared to historical norms.