Detailed Analysis with Record Profits, Bonus Issue & Dividend
HDFC Bank, India’s largest private sector lender, has delivered a strong Q1 FY26 (April-June 2025) performance, beating analyst estimates with a 12% YoY rise in net profit and announcing its first-ever bonus issue alongside a special dividend.
HDFC Bank Q1 FY26 Results: Detailed Analysis with Record Profits, Bonus Issue & Dividend [SEO Optimized]
Introduction
HDFC Bank, India’s largest private sector lender, has delivered a strong Q1 FY26 (April-June 2025) performance, beating analyst estimates with a 12% YoY rise in net profit and announcing its first-ever bonus issue alongside a special dividend.
This post provides a detailed breakdown of HDFC Bank’s Q1 FY26 results, including financial highlights, segment-wise performance, management commentary, and future outlook
HDFC Bank Q1 FY26 Results – Detailed Breakdown
1. Key Financial Highlights
- Net Profit (PAT): ₹18,155 crore (+12% YoY), beating estimates.
- Net Interest Income (NII): ₹31,438 crore (+5.4% YoY).
- Other Income: ₹21,730 crore (+103.7% YoY), boosted by ₹9,128 crore gain from HDB Financial IPO.
- Provisions: ₹14,442 crore (includes ₹9,000 crore floating provisions).
- Cost-to-Income Ratio: 39.6% (excluding IPO gains).
2. Advances & Deposits Growth
- Gross Advances: ₹26.53 lakh crore (+6.7% YoY).
- Deposits: ₹27.64 lakh crore (+16.2% YoY).
- CASA Ratio: 33.9% (vs. 38.2% YoY).
3. Asset Quality & Risk Management
- GNPA Ratio: 1.40% (1.14% ex-agri loans).
- NNPA Ratio: 0.47%.
- Slippages: ₹3,327 crore (mainly from agri loans).
4. Bonus Issue & Dividend
- 1:1 Bonus Issue (First-ever in HDFC Bank’s history).
- Special Dividend: ₹5 per share (500% payout on ₹1 face value).
- Record Date: July 25 (Dividend), August 27 (Bonus).
5. Management Commentary & Outlook
- Branch Expansion: Normalizing in FY26, focus on digital banking & productivity.
- NIM Recovery Expected by FY27 (currently at 3.35%, down from 3.46% in Q4 FY25).
- Loan Growth: To match industry in FY26, accelerate in FY27.
Market Reaction & Investor Takeaways
- Stock Performance: Up 22% YTD, trading at ₹1,959 (NSE).
- Analyst Targets: ₹2,100–2,265 (Kotak, Emkay).
- Key Risks:
- Margin pressure due to deposit repricing.
- Rural credit risks (agri loan slippages).
Conclusion: A Strong Start to FY26
HDFC Bank’s Q1 FY26 results reflect resilient profitability, prudent risk management, and shareholder-friendly moves (bonus & dividend). While NIM pressures persist, the bank’s strong deposit growth, digital focus, and subsidiary gains position it well for FY26.
Investors should watch:
✅ NIM recovery progress (FY27 target: 3.7%).
✅ Deposit growth vs. loan demand.
✅ Execution of digital & cost-optimization strategies.
For full earnings reports, visit HDFC Bank Investor Relations.
- HDFC Bank Q1 FY26 Results
- HDFC Bank profit Q1 2025
- HDFC Bank bonus issue
- HDFC Bank dividend FY26
- HDFC Bank NIM analysis
Data Sources: HDFC Bank Q1 FY26 Earnings
Disclaimer: Not investment advice. Consult a financial advisor before decisions.
