Bank Of Maharashtra Consolidating Ahead Of Q1 Results: SEBI RA Says Long-term Trend Remains Bullish

Financials appear robust, but doubts remain over the low interest coverage ratio and high liabilities

Bank of Maharashtra is set to announce its Q1FY26 results later today, and with robust credit growth of 15.36% to ₹2.41 lakh crore in the first quarter, investors are eyeing whether strong earnings could spark a fresh uptrend in the stock.

Bank of Maharashtra is currently in a healthy correction phase after a sharp rally. The stock has shed 1.9% over the past week.

The stock is showing signs of resilience as it consolidates above a key weekly support zone between ₹50 - ₹54, said SEBI-registered analyst Rohit Mehta. Key resistance lies at its all-time high price of ₹71.21.

While the long-term trend remains bullish, driven by a strong recovery from multi-year lows, recent price action reflects a correction, he said.

Technical indicators suggest that as long as the support holds, the stock could attempt a base formation and eventual reversal. Accumulation patterns remain strong, with sustained volume growth observed since 2020, Mehta said.

From a fundamental standpoint, the bank’s financial performance remains encouraging. In the March quarter, revenue rose 23.12% while financing profit surged 126%. Shareholding trends also show rising foreign institutional investors (FII) interest, while promoter stake remains stable at 79.60%.

On the positives, Bank of Maharashtra boasts a five-year profit CAGR of nearly 70%, improved working capital efficiency, and a healthy dividend payout ratio of 26.2%. However, concerns remain over its low interest coverage ratio, high contingent liabilities of around ₹47,914 crore, and a potentially unsustainable tax rate, the analyst added.

Retail sentiment on Stocktwits continued to remain ‘bearish’.

The stock is currently trading at ₹56.37, down 1.5% in early trade. Year-to-date (YTD) gains stand at 8.2%.

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