Private lender HDFC Bank is scheduled to report quarterly results for the April to June quarter (Q1) of FY27 on Saturday, July 18, 2026. According to latest reports, the Q1 results could be a mixed quarter for the largest private lender, with analysts predicting net profit to increase 6% year-on-year to ₹19,226 crore, registering growth from ₹18,155 crore in the year-ago period. Sequentially, net profit could remain flat as the bank benefits from lower provisions and strong loan growth during the quarter. Latest Bloomberg estimates support this projection, with net profit seen 9% higher at ₹19,720 crore compared to ₹18,155 crore in the previous year. Sequentially, net profit could remain flat as the bank benefits from lower provisions and strong loan growth during the quarter.
Multiple brokerages have provided optimistic projections for HDFC Bank's Q1FY27 performance. As reported by Motilal Oswal Financial Services, Net Interest Income (NII) during the quarter is estimated to grow 8.5% to ₹34,110 crore from ₹31,438 crore, year-on-year. Axis Securities expects HDFC Bank's NII to rise 8.6% YoY to ₹34,154 crore and net profit to grow 7.3% YoY to ₹19,484 crore. Axis Securities notes that non-interest income is expected to fall 39.4% YoY and decline 0.2% QoQ, with the sharp decline due to the high base of Q1 FY26 when the bank booked gains from the HDB Financial Services stake sale. The strong NII growth is expected to be supported by robust loan expansion across corporate, business banking, agriculture and gold loans segments. Latest Bloomberg estimates indicate NII seen 8.9% higher at ₹34,256.57 crore versus ₹31,440 crore in the previous year, with NII projected to rise around 2.5% sequentially and 8% YoY according to Citi. Net interest income is likely to increase by 6% to 8% YoY in the range of ₹33,900 to ₹34,250 crore, while remaining flat compared to the previous quarter.
According to Motilal Oswal Financial Services reports, loan growth is expected at 14.5% year-on-year and 2.4% quarter-on-quarter, led by corporate, business banking, agriculture and gold loans segments. Mortgage loan growth may remain subdued during the quarter. The bank's business momentum entering the June quarter shows period-end advances under management rose about 12.4% year-on-year, with gross advances increased about 15.4% and deposits grew about 14.7%, indicating healthy business expansion. Citi expects loan growth to improve to around 12-14%, led by corporate lending and business banking, while agriculture and gold loans are likely to outpace the broader retail portfolio. HDFC Bank reported a 15.4% YoY increase in gross advances to ₹30.61 lakh crore during the June quarter, with deposits growing by 14.7% YoY to ₹31.70 lakh crore. Current account-savings account (CASA) deposits also rose by 9.4% YoY, reaching ₹10.2 lakh crore during the quarter, indicating strong deposit mobilization.
As reported by Motilal Oswal Financial Services, provisions are expected to fall 78.9% year-on-year to ₹3,044 crore but gain 16% quarter-on-quarter, reflecting the high base effect from Q1FY26 when the bank utilized part of HDBFS IPO proceeds to create ₹10,700 crore of floating and contingent provisions. Latest Bloomberg estimates show provisions seen 74% lower at ₹3,678.3 crore versus ₹14,441.6 crore in the previous year. Pre-provisions Operating Profit (PPOP) in Q1FY27 is seen falling 20% to ₹28,623 crore from ₹35,734 crore, YoY. Axis Securities estimates provisions at ₹3,044 crore, down 78.9% YoY but up 16% QoQ, with the brokerage expecting provisions to be significantly lower due to a one-time floating provision of ₹90 billion and a contingency provision of ₹17 billion. Operating profit is expected to decline to ₹28,795.3 crore from ₹35,733.96 crore in the previous year, though this reflects the high base effect from the previous quarter. Net profit improvement during the quarter is aided by lower provisions and strong loan growth, with the bank registered a standalone net profit of ₹18,155 crore in Q1FY26 and ₹19,221 crore in the previous quarter.
According to Motilal Oswal Financial Services reports, NIMs are likely to remain largely flat sequentially amid interest reversals on seasonal agriculture segment stress, with cost ratios likely to be contained amid benefits from operating leverage. Latest Bloomberg estimates indicate net interest margin seen at 3.32% versus 3.35% (3.38% QoQ), representing a slight compression from the previous quarter. The focus this quarter will be on whether the bank can protect profitability while managing seasonal pressure on net interest margins. Asset quality is expected to remain stable, with gross NPA ratio estimated to fall to 1.1% from 1.2%, QoQ, while Net NPA is seen flat sequentially at 0.4%. Motilal Oswal estimates asset quality across segments are expected to remain steady, with slippages to marginally increase sequentially along with provisions on a sequential basis. Citi estimates credit costs at around 45 basis points across segments, indicating steady asset quality maintenance despite seasonal agricultural stress. Net interest margins likely to remain flat sequentially, with the bank maintaining its competitive position in the banking sector.
HDFC Bank shares have risen over 4% in one month but declined 12% in six months, indicating mixed short-term performance. The banking stock has dropped 17% in one year and fallen 2% in three years, reflecting broader market challenges. Technical analysis shows HDFC Bank is attempting a breakout above the ₹819 resistance zone after consolidating near its recent highs. The stock remains above the rising 20-day and 50-day EMAs, keeping the short-term structure positive. A sustained close above ₹820–825 could open the way towards ₹840 and ₹855, while immediate support is placed near ₹805–800, followed by the 50-day EMA around ₹796. Options market is pricing in a move of about ±3.5% in HDFC Bank as of July 17, based on the at-the-money 820 strike and current implied volatility. With the options market pricing in a ±3.5% move for HDFC Bank ahead of the 28 July expiry, traders may consider straddle strategies depending on their view of potential price movement and volatility.
