HDFC Bank Q1 result preview: NIMs growth outlook, bonus issue in focus; concall timing

India's largest private sector lender HDFC Bank will announce its unaudited standalone and consolidated financial results for the quarter ended June 30, 2025 on Saturday, July 19. 2025. Besides this, the board will also consider and approve to issue bonus shares for the shareholders, which will be its first bonus issue since listing. Board meeting is followed by a concall at 6 pm IST.

Analysts tracking the stock expect HDFC Bank to report a flat to muted growth in net-interest income (NIIs), pre-provisioning operating profit (PPOP) and net profit on a quarter-on-quarter (QoQ) basis. However, performance on a year-on-year (YoY) comparison may rise in high single digits. NIMs, on the other hand, may contract marginally for the quarter.

Kotak Institutional Equities is penciling HDFC Bank's NIIs to come in at Rs 31,408.4 crore, up 5.3 per cent YoY but down 2.1 per cent QoQ in Q1FY26. PPOP is seen at Rs 26,339.8 crore, up 10.3 per cent YoY but down 07 per cent QoQ. NIMs may fall maringally to 3.4 per cent, while net profit may come in at Rs 17,837.4 crore, up 10 per cent YoY and 1.3 per cent YoY.

"The headline reported number was slower than industry average on loan growth as strong efforts are being made to improve their CD ratio. We are building NIM to decline due to faster re-pricing of loans in Q1FY26. We expect the gross NPL ratio to be stable with slippages at 1.3% of loans. Near term focus would be the progress of NIM, growth outlook and impact of PSL," added Kotak.

Emkay Global Financial Services is expecting HDFC Bank to report an income of Rs 31,911.1 crore, up 7 per cent YoY and 0.5 per cent QoQ. Ebitda is seen at Rs 26,229.1 crore, up 9.8 per cent YoY but down 1.2 per cent QoQ. Net profit is seen at Rs 17,540.8 crore, up 8.4 per cent YoY and 0.4 per cent QoQ.

Anand Rathi Shares & Stock Brokers is expecting HDFC Bank to report a NIIs at 32,291.5 crore, up 8.2 per cent YoY and 0.7 per cent QoQ in first quarter of this fiscal year. PPOP is seen at Rs 26,613.8 crore, up 11.4 per cent YoY and 0.3 per cent QoQ. Net profit may come in at Rs 17,701 crore, up 9.4 per cent YoY and 0.5 per cent QoQ.

Equirus Securities is pencilling in HDFC Bank's NIIs for June 2025 quarter at Rs 31,431.8 crore, up 5.3 per cent YoY but down 2 per cent QoQ. PPOP is seen at Rs 25,662.1 crore, up 7.4 per cent YoY but down 3.3 per cent QoQ, while NIMs may contract maringally to 3.3 per cent for the quarter. Net profit is seen at Rs 17,002.1 crore, up 5.1 per cent YoY but down 3.5 per cent QoQ.

"We expect advances growth at sub 1 per cent  QoQ and deposit growth at 2 per cent QoQ. We expect NIMs to moderate sequentially and asset quality to remain steady. Guidance on FY26 NIM business growth shall be key thing to look for" Equirus added.

Emkay Global has a 'buy' rating on HDFC Bank with a target price of Rs 2,200. Kotak has an 'add' rating on HDFC Bank with a target price of Rs 2,100. Anand Rathi has suggested to 'hold' the stock. Equirus has suggested to 'long' the lender with a target price of Rs 2,265.

Shares of HDFC Bank settled at Rs 1,957.40 on Friday, falling 1.47 per cent for the day. The total market capitalization of the lender stood slightly above Rs 15 lakh crore mark.