HDFC Bank Q2 Results: Strong Loan Growth, Margin Outlook Boost Earnings
Improving loan growth and a positive margin outlook are some of the key driving factors behind HDFC Bank’s earnings upgrade, Jefferies noted after the lender reported its September quarter results for the financial year ending March 2026 on Saturday.
India’s largest private sector bank reported an 11% year-on-year rise in net profit for the September quarter to Rs 18,641 crore, compared with Rs 16,821 crore a year earlier. Sequentially, profit increased 3%.
Key Highlights of HDFC Bank’s Q2 Results
- Net profit rose 10.8% to Rs 18,641 crore versus Rs 16,821 crore.
- Net interest income up 4.8% to Rs 31,552 crore versus Rs 30,114 crore.
- Provisions up 30% to Rs 3,501 crore versus Rs 2,700 crore.
- Gross NPA ratio down 16 bps to 1.24% versus 1.40% (QoQ).
- Net NPA ratio down 5 bps to 0.42% versus 0.47% (QoQ).
- Other income up 25% to Rs 14,350 crore versus Rs 11,483 crore.
In light of a strong quarter, Jefferies has maintained a ‘buy’ rating on HDFC Bank while hiking the target price from Rs 1,200 to Rs 1,240.
The brokerage firm highlighted the bank’s strong loan growth and improving margin outlook, as mentioned earlier.
Jefferies added that asset quality improvement was led by corporate recovery, while deposit growth could be a key monitorable going forward.
The brokerage has also lifted HDFC Bank’s earnings estimates by 2-6%, adding that the lender remains one of its top picks in the sector.
Morgan Stanley’s View on HDFC Bank
Morgan Stanley, too, has come out with a note on HDFC Bank, retaining an ‘overweight’ call with an unchanged target price of Rs 1,225.
The firm also noted the lender’s improving loan growth and robust asset quality, which is coupled with strong market share – making HDFC Bank one of the most attractive bets in the space.
For investors looking to invest in the Indian banking sector, it’s essential to stay up-to-date with the latest stock market news and trends.
Additionally, understanding the loan growth and margin outlook of banks like HDFC Bank can help investors make informed decisions.
To learn more about the Indian banking sector and how to invest in it, check out our guide on investing in the Indian banking sector.
Conclusion
In conclusion, HDFC Bank’s Q2 results show strong loan growth and a positive margin outlook, making it an attractive bet for investors.
With a ‘buy’ rating from Jefferies and an ‘overweight’ call from Morgan Stanley, HDFC Bank is definitely a stock to watch in the Indian banking sector.
Stay tuned for more updates on the Indian stock market and the banking sector, and don’t forget to check out our stock market tips and tricks for investors.
