Profit up 35%, shares down 15%: What went wrong at Bandhan Bank?

Bandhan Bank reported a 35% year-on-year rise in Q1 FY27 net profit to Rs 502 crore, yet the stock was locked in a 15% lower circuit at Rs 177.50 on the NSE. The selloff was triggered by a sharp cut in FY27 RoA guidance to 1.2%-1.4% from 1.6%-1.8%, a 19% YoY decline in operating profit to Rs 1,358 crore, and a 16 bps fall in NIM to 6.2%. Brokerages including Nomura, Jefferies, CLSA, Macquarie, and Nuvama cut estimates by 10-14%, citing higher funding costs, elevated tech expenses, and uncertain macros.