BoB Q2 Results Preview: Profitability Likely To Decline Sharply On Lower Margins; Loan Momentum Strong

The financial results for the September 2025 quarter (2QFY26) will be released by Bank of Baroda (BoB) on Friday, October 31. It is anticipated that Bank of Baroda (BOB) would post a lacklustre performance for the September 2025 quarter (Q2FY26), as lower core income and margin compression are likely to put pressure on profitability.

BoB Q2 Results Preview By Prabhudas Lilladher

The bank is expected to announce Net Interest Income (NII) of Rs 11,383 crore for the second quarter of FY26, which is up 3% sequentially but down 2.1% YoY. Pre-Provision Operating Profit (PPOP) is expected to be at Rs 6,869 crore, a substantial drop of 16.6% QoQ and 27.5% YoY. Provisions might drop by 20% YoY and 5% QoQ to Rs 1,869 crore. Due to ongoing margin pressure, Profit After Tax (PAT) might drop 30.3% YoY and 19.6% QoQ to Rs 3,651 crore.

The net interest margin (NIM) might fall to 2.7% by 34 basis points YoY and 5 basis points sequentially. With gross non-performing assets (NPAs) falling to 2.13% from 2.5% the previous year and credit costs falling by 24 basis points YoY and 7 basis points QoQ to 0.59%, the bank's asset quality may be improving. Despite pressure on profitability, loan growth is expected to be high at Rs 12,57,400 crore, up 12.2% YoY and 6% QoQ.

BoB Q2 Results Preview By Axis Direct

In the second quarter of FY26, the bank's performance reflected moderation across key metrics. At Rs 11,263 crore, Net Interest Income (NII) is likely to drop 1.5% sequentially and 3.1% annually. Non-interest income might drop precipitously to Rs 3,963 crore by 23.5% YoY and 15.2% QoQ. As a result, Pre-Provision Operating Profit (PPOP) might fall to Rs 7,133 crore by 24.7% YoY and 13.4% QoQ.

Provisions might drop to Rs 1,569 crore by 20.2% QoQ and 32.8% YoY. However, Earnings Per Share (EPS) may fall to Rs 8 from Rs 10.1 in the same quarter last year, representing a 21.4% year-on-year loss, while net profit may drop 21.4% YoY and 9.3% QoQ to Rs 4,118 crore. Overall, the bank witnessed pressure on income and profitability metrics during the quarter.

BoB Q2 Results Preview By InCred Equities - InCred Group

The bank may post Net Interest Income (NII) of Rs 11,000 crore for the September 2025 quarter (2QFY26), a drop of 0.9% sequentially and 5.6% YoY. At Rs 7,000 crore, Pre-Provision Operating Profit (PPOP) showed a 26.3% YoY drop and a 15.2% QoQ decline. Profit After Tax (PAT) might drop by 25.6% YoY and 14.1% QoQ to Rs 3,900 crore.

It's possible that the net interest margin will fall to 2.80%, down 11 basis points QoQ and 30 basis points YoY. Credit costs may drop to 58 basis points, an improvement of 24 bps YoY and 10 bps QoQ. Meanwhile, advances may rise strongly to Rs 12,57,400 crore, showing a 12.2% growth YoY and 6% increase sequentially.

BoB Target Price

"The stock is consolidating above key support at ₹270, showing strength with rising volumes. A sustained move above ₹278 could trigger momentum toward ₹285-₹295 levels. RSI remains positive, indicating continued bullish sentiment. Trend remains strong; traders can maintain a buy-on-dips approach with a stop loss near ₹268 for short-term gains," commented Riyank Arora, technical analyst at Mehta Equities Ltd.

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