HDFC Bank Q1 results preview: Net profit likely to rise 6% YoY on strong loan growth, NIMs to remain flat

HDFC Bank Q1 results 2026 preview: HDFC Bank, India’s largest private sector lender, is set to announce its financial results for the first quarter of FY27 today, 18 July 2026.

HDFC Bank Q1 results are expected to be mixed, with net interest margin (NIM) likely to remain largely stable sequentially, while asset quality is expected to remain steady. Analysts anticipate healthy double-digit loan growth, supported by strong business momentum.

HDFC Bank is expected to report a net profit of ₹19,226 crore in the April-June quarter, registering a growth of 5.9% from ₹18,155 crore in the year-ago period. Net Interest Income (NII) during the quarter is estimated to grow 8.5% to ₹34,110 crore from ₹31,438 crore, year-on-year (YoY), according to estimates by brokerage firm Motilal Oswal Financial Services.

NIMs are likely to remain largely flat sequentially amid interest reversals on seasonal agriculture segment stress. Cost ratios are likely to be contained amid benefits from operating leverage.

Pre-provisions Operating Profit (PPOP) in Q1FY27 is seen falling 20% to ₹28,623 crore from ₹35,734 crore, YoY.

The brokerage firm expects HDFC Bank’s loan growth at 14.5% YoY in Q1FY26, led by corporate, business banking, agriculture and gold loans, while mortgage loan growth may remain subdued.

Asset quality across segments are estimated to remain steady. Gross non-performing assets (GNPA) ratio is expected to fall to 1.1% from 1.2%, QoQ, while Net NPA is seen flat sequentially at 0.4%.

Analysts expect HDFC Bank’s slippages to marginally increase sequentially along with provisions. However, on a YoY basis, the provisions are expected to be significantly lower due to a one-time floating provision of ₹90 billion and a contingency provision of ₹17 billion.

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.

“Non-interest income is expected to fall 39.4% YoY and decline 0.2% QoQ. The sharp decline is due to the high base of Q1 FY26, when the bank booked gains from the HDB Financial Services stake sale,” said Axis Securities.

The brokerage expects pre-provision operating profit to decline 20% year-on-year to ₹28,582 crore. It estimates provisions at ₹3,044 crore, down 78.9% YoY but up 16% QoQ.

HDFC Bank share price has risen over 4% in one month, but has declined 12% in six months. The banking stock has dropped 17% in one year, and has fallen 2% in three years.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corpor...