The net profit of the public creditor Bank of Baroda (BoB) in the first quarter of the fiscal year 2027 (Q1FY27) decreased by 72% compared to the previous year, reaching 1,278 crore rupees. This occurred after the bank recognized one-time expenses of approximately 5,700 crore rupees related to settling the legal dispute concerning NMC Health.
BoB reached an out-of-court settlement worth 600 million US dollars with the joint administrators of NMC Health Plc, NMC Healthcare Ltd, and NMC Holding Ltd. This agreement was aimed at resolving litigation arising from the collapse of NMC Health. Excluding this one-time loss, the bank's net profit in Q1FY27 would have been 5,528 crore rupees. It is worth noting that in the fourth quarter of the fiscal year 2026 (Q4FY26), the bank reported a net profit of 5,616 crore rupees, which was higher than the figure of 4,541 crore rupees a year earlier.
The legal battles began due to the collapse of NMC Health, which was once the largest private healthcare provider in the Gulf. The company was placed under administration in 2020 after billions of dollars in previously undisclosed debts came to light. Subsequently, the joint administrators filed lawsuits in Abu Dhabi and England against NMC founder, B R Shetty, former CEO Prasanth Manghat, and Bank of Baroda, utilizing the insolvency laws of ADGM and the UK, as well as UAE civil law. Bank of Baroda denies all allegations made, and the agreement explicitly states that the claims are settled without admission of liability or wrongdoing.
Debdatta Chand, Managing Director and CEO of Bank of Baroda, stated that the agreement resolves all disputes between the parties without admitting any liability or current charges. He clarified that the bank's liability in these processes is limited to the amount of 600 million US dollars, and the financial impact of the settlement is fully accounted for in the profit and loss statement for the quarter ending June 30, 2026. This concludes a complex, long-standing cross-border dispute involving various jurisdictions, legal systems, and protracted legal proceedings.
Chand added that the decision to enter into the agreement was made after a thorough assessment of commercial aspects, including the time, costs, and uncertainty associated with drawn-out litigation. He emphasized that this is a commercially sensible step taken without admitting fault, allowing the bank to close an old issue and focus on long-term sustainable growth, customers, and stakeholders.
Commenting on the FCNR(B) scheme, Chand noted that the bank has already attracted about 700 million dollars and expects to exceed 1 billion dollars by the end of the month. The bank aims to attract 4-5 billion dollars in FCNR(B) deposits by the end of September. Furthermore, the public creditor plans to raise about 1 billion dollars through the issuance of a dollar bond within the Reserve Bank of India's (RBI) preferential swap window but awaits a suitable moment to enter the market and secure the best price.
BoB's Net Interest Income (NII) for the quarter increased by 9.5% compared to the previous year, reaching 12,524 crore rupees, while non-interest income fell by 26% compared to the previous year to 3,470 crore rupees due to lower treasury revenues. The Net Interest Margin (NIM) decreased by 12 basis points (bps) sequentially to 2.77% in Q1FY27, with the bank's target for FY27 being 2.75-2.95%.
New write-offs in Q1FY27 slightly increased to 3,183 crore rupees compared to the previous quarter. Total provisions for the quarter rose to 6,323 crore rupees compared to 3,150 crore rupees in Q4FY26 and 1,967 crore rupees in Q1FY26, mainly due to the settlement amount of 5,680 crore rupees. Asset quality deteriorated: Gross Non-Performing Assets (NPA) stood at 1.99% at the end of June, which is 10 bps higher than the previous quarter. Net NPAs increased by 5 bps over the period to 0.5%.
The bank's home loans grew by 16% compared to the previous year to 11.50 trillion rupees. Meanwhile, the retail portfolio grew by 18.4% compared to the previous year, agriculture by 18.7% compared to the previous year, MSMEs by 20.3% compared to the previous year, and the corporate portfolio by 15.3% compared to the previous year. The bank's home deposits increased by 14.7% compared to the previous year, reaching 13.81 trillion rupees by the end of June.
The net profit of cement manufacturer ACC for the first quarter of fiscal year 27 decreased by 60.90% compared to the same period last year, amounting to 147 crore rupees. The company attributed this decline to the impact of scheduled maintenance at large integrated plants, an increase in the Master Supply Agreement (MSA) with parent company Ambuja Cements, and a drop in sales, revenue, and margins.
ACC's operating revenue for the reporting quarter decreased by 8.22% year-on-year, reaching 5,808 crore rupees. Meanwhile, the company's total expenses for the period under review were reduced by 3.35% to 5,639 crore rupees. Sales volume also fell by 6.54% year-on-year, totaling 10 million tonnes, which was linked to the higher MSA with Ambuja.
ACC's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter stood at 457 crore rupees, which is 41.33% less than the previous year. The company's margin in the first quarter of FY27 was approximately 7.9%, compared to 12.3% in the first quarter of FY26. The company links the decrease in sales volume and operating EBITDA to the terms of the aforementioned MSA.
The MSA allows ACC and Ambuja to supply cement to each other to meet customer demand. Under this agreement, if one company faces a supply shortage or receives an order exceeding its production capacity, the other party can fulfill that need. During the quarter, a large portion of sales was channeled through the MSA, and scheduled maintenance at ACC's large integrated plants negatively affected the company's sales volumes and profitability.
Vinod Bahati, Director and CEO of ACC, noted that the company started FY27 with stable figures, supported by the growth in trade volumes and continued premiumization. He emphasized that the quarterly profitability reflected the impact of scheduled maintenance and the increased MSA with parent Ambuja Cements, despite prioritizing value growth and quality earnings.
Furthermore, electricity and fuel costs in the first quarter of FY27 decreased by 8.93% year-on-year to 785 crore rupees, while the cost of consumed materials dropped by 10.29% to 1,002 crore rupees. Freight and expedition expenses amounted to 1,047 crore rupees, which is 8.47% lower year-on-year.
Bahati added that thanks to strategic capacity expansions in Salai Banwa and Kalamboli, operational excellence ensured by CiNOC, and customer-centric solutions, the company anticipates improved performance in upcoming quarters. He also stated that Adani Cement intends to achieve cost reductions of approximately 250 PMT (per metric ton) on a consolidated basis in FY27, leveraging the strengths of the integrated business model and group synergy.
The first quarter of FY27 marked the third consecutive quarter in which ACC reported a decline in profit. Previously, in the third quarter of FY26, profit fell by 62.97% year-on-year to 404.21 crore rupees, which was attributed to the high base effect in the third quarter of FY25. In the fourth quarter of FY26, profit declined by 68.27% year-on-year to 238.25 crore rupees due to pressure from fuel and diesel costs, restrictions on packaging bag supplies, rupee devaluation following the Middle East conflict, and the impact of one-off items in the fourth quarter of FY25.
Quarter-on-quarter (Q-o-Q), ACC's profit in the first quarter of FY27 decreased by 38.23%, and revenue by 18.72%. The company also announced progress in creating the One Cement platform through the proposed merger of ACC with Ambuja Cements. The no-objection certificate was obtained from the Securities and Exchange Board of India (Sebi) on June 4, 2026, and the application was filed with the National Company Law Tribunal (NCLT) on June 29, 2026. The merger is expected to be completed within FY27.
Regarding the Middle East conflict, ACC indicated that the Indian cement sector experienced cost pressures in the first quarter of FY27 due to higher prices for imported fuels such as petcoke and coal, as well as increased freight and logistics costs resulting from geopolitical events in the Middle East. The company noted that the expected impact of fuel price inflation will peak in the seasonally weaker second quarter, potentially affecting industry profitability in the near term, and it continues to mitigate this pressure through fuel mix optimization, increased use of renewable energy, enhanced logistical efficiency, focus on higher-margin markets, and disciplined cost management.
Bharat Coking Coal Ltd (BCCL), a subsidiary of Coal India, announced on Wednesday a net loss of 68.09 crore rupees for the June quarter. This result was attributed to a decrease in revenue and an increase in expenses.
Operating revenue in the first quarter of the current fiscal year amounted to 3,587.27 crore rupees, which is lower than the 3,719.59 crore rupees recorded in the same period last year. The company noted that the decline in sales is linked to a reduction in external supplies from 8.83 million tonnes to 7.81 million tonnes. Furthermore, the decrease in other income is explained by reduced reserves and write-offs of liabilities.
The company's total expenses rose to 3,826.31 crore rupees compared to 3,654.39 crore rupees in the previous year. It should be noted that in the corresponding period last year, BCCL reported a profit of 176.87 crore rupees, according to filings with BSE.
Bharat Coking Coal Ltd manages an extensive network of open-pit and underground mines in Jharkhand and West Bengal, with a particular focus on the Jharia coalfield. The company's operations encompass various strategic projects that contribute to the mission of producing coking coal for the country, as well as addressing critical fire control issues.
