Pune, India – Bank of Maharashtra (BoM) has announced robust financial results for the September 2026 quarter (Q2 FY27), driving its stock up by as much as 5.7 percent to Rs 80.48 in Monday's trading session. The public sector bank reported a significant 41.42 percent year-on-year (YoY) increase in net profit, reaching Rs 2,309.6 crore.
Alongside the impressive profit growth, Net Interest Income (NII) climbed 21.76 percent YoY to Rs 3,954.4 crore, and operating profit rose 30.86 percent to Rs 3,368.67 crore. The bank's return on assets (RoA) improved to 2.02 percent, with a notable improvement in its non-performing assets (NPAs) during the quarter.
Stock Performance and Recent Correction
Despite the strong Q2 performance, the Bank of Maharashtra stock has seen a correction of over 24 percent from its 52-week high of Rs 94.50, recorded on June 29, 2026. As of Monday's close at Rs 76.10, the stock has gained nearly 25 percent in 2026 so far and an impressive almost 290 percent over the past five years, with a market capitalization nearing Rs 62,000 crore.
Brokerages Maintain 'Buy' Ratings, Set Targets
Following the Q2 FY27 results, several prominent brokerages have reaffirmed their positive outlook on Bank of Maharashtra, reiterating 'buy' ratings and setting ambitious target prices for the stock.
- ICICI Securities has maintained a 'buy' rating with a target price of Rs 100. The brokerage revised its FY27E/FY28E EPS upwards by 10 percent and 7 percent respectively, citing higher growth and Net Interest Margin (NIM). ICICI Securities noted that despite the stock's 12 percent correction in the last two months, valuations at 1.25 times FY28E Adjusted Book Value (ABV) appear attractive, particularly given BoM's strong performance in growth and Return on Equity (RoE).
- HDFC Securities reiterated its 'buy' rating and revised its target price to Rs 95. The firm highlighted BoM's robust loan growth, margin expansion, and a sharp decline in credit costs to just 15 basis points as key drivers of its strong performance. They also pointed to improved deposit growth, aided by Foreign Currency Non-Resident (FCNR) deposit mobilization, and management's indication of a limited impact from farm loan waivers.
- Systematix Institutional Equities also retained its 'buy' rating, setting a revised target price of Rs 100. Systematix attributed the bank's sequential improvement to higher NIMs, recoveries from written-off loans, and lower provisions. The bank's NIM improved by 7 basis points quarter-on-quarter to 3.86 percent. The brokerage valued the standalone bank at 1.7 times its estimated FY28 adjusted book value per share of Rs 59.
Analysts generally agree that Bank of Maharashtra's strong profitability, improving asset quality, and healthy growth prospects make it an attractive investment, even after its recent stock correction.