- HDFC Bank stock declined over 4% post Q1 earnings.
- Quarterly net profit and NII missed market estimates.
- Brokerages, citing stable asset quality, maintained positive ratings.
Shares of HDFC Bank declined more than 4 per cent in early trade on Monday after the country’s largest private sector lender reported its earnings for the June quarter, with profit and net interest income (NII) coming in below market expectations.
The stock fell as much as 4.94 per cent to Rs 779.20 around 11:03 AM, reversing the gains made ahead of the earnings announcement. HDFC Bank had ended Friday’s session 1.4 per cent higher at Rs 819.60 before announcing its April-June quarter results.
While the quarterly performance fell short of analyst estimates on some key parameters, leading brokerages retained their positive stance on the stock, citing stable asset quality, improving business momentum and disciplined cost management.
Profit And NII Miss Estimates
HDFC Bank reported a standalone net profit of Rs 19,059.72 crore for the April-June quarter, marking a 4.98 per cent year-on-year increase. However, the figure was below the CNBC-TV18 poll estimate of Rs 19,332 crore.
Net interest income rose 6.7 per cent year-on-year to Rs 33,535.95 crore, also missing the CNBC-TV18 estimate of Rs 34,353 crore.
The bank reported a net interest margin (NIM) of 3.26 per cent on total assets for the quarter.
On the asset quality front, gross non-performing assets (GNPA) stood at 1.17 per cent as of June 30, 2026, while net non-performing assets (NNPA) came in at 0.41 per cent.
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Brokerages Maintain Bullish Outlook
Despite the earnings miss, brokerages largely retained their positive recommendations on the lender.
Jefferies reiterated its ‘Buy’ rating on the stock with a target price of Rs 1,050. According to the brokerage, the modest shortfall in NII was offset by lower operating expenses and reduced credit costs, reported Moneycontrol.
Bernstein also maintained its ‘Outperform’ rating and retained a target price of Rs 1,150. The brokerage said healthy balance sheet growth, operational efficiency and stable asset quality continued to support its positive view, despite ongoing pressure on margins.
Nomura reaffirmed its ‘Buy’ rating with a target price of Rs 950. It described the June quarter performance as broadly in line with expectations and highlighted improving momentum in loan and deposit growth, along with what it termed pristine asset quality.
Stock Extends Weak Performance In 2026
Monday’s decline added to the stock’s losses for the year.
Before the latest session, HDFC Bank shares had fallen 17.2 per cent in 2026, underperforming the benchmark Nifty 50, which had declined 6.9 per cent over the same period.
The lender currently has a market capitalisation of more than Rs 12.64 lakh crore, making it one of India’s most valuable listed companies.
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