HDFC Bank Share Price Declines Following Q4 Earnings Release

HDFC Bank Shares Decline Over 1% After Q4 Results

HDFC Bank, the largest private sector lender in India, reported steady and largely in line earnings for the fourth quarter of FY26, aided by steady revenue growth and lower provisions. The bank's shares fell as much as 1.23% to ₹790.00 apiece on the BSE on Monday.

The private lender reported a standalone net profit of ₹19,221.05 crore in Q4F26, registering a growth of 9.11% from ₹17,616.14 crore in the year ago period. Net Interest Income (NII) increased 3.8% year-on-year (YoY) to ₹33,281.5 crore. Net interest margin (NIM) was at 3.4%. Pre-provisions Operating Profit during the quarter ended March 2026 grew 4.37% to ₹27,802.92 crore from ₹26,636.7 crore, YoY.

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The bank's provisions during the March quarter dropped to ₹2,609.57 crore from ₹2,837.86 crore QoQ and from ₹3,193.05 crore, YoY. HDFC Bank's Board of Directors also recommended a final dividend of ₹13.00 per equity share of ₹1 for the year ended March 31, 2026.

Analysts at Motilal Oswal Financial Services estimate the CD ratio to decline toward 92% by FY28E in a calibrated manner. It also expects NIMs to see a gradual improvement, with gradual retirement of high-cost borrowings and an improvement in operating leverage, which will support return ratios over the coming years. The brokerage firm largely maintained its earnings estimates and expected HDFC Bank to deliver FY27E RoA and RoE of 1.84% and 14.4%. It reiterated a 'Buy' rating with HDFC Bank share price target of ₹1,100 per share.

JM Financial said that the stretched CD ratio of 94.6% and low LCR of 114% limits HDFC Bank's ability to grow at a faster pace. "Hence, we expect a 14% loan CAGR over FY26–28E. That said, we are positive on the bank's pristine asset quality and improvement in margins by FY28E led by a reduction in high-cost funding. We expect the bank to deliver an average RoA and RoE of 1.8% and 14% over FY27–28E led by an EPS CAGR of 13% over FY26–28E," said JM Financial. It maintained an 'Add' rating and raised HDFC Bank share price target to ₹890 apiece from ₹850 earlier.

ICICI Securities believes HDFC Bank is relatively better placed in case of any flare-up in MSME stress due to its strong underwriting track record. With a higher share of mortgages, the bank could also benefit from a turn in the rate cycle. "We estimate the bank to deliver a ~15% CAGR in NII and a 20% CAGR in core PAT over FY26-28E. The stock trades inexpensively at ~1.7x/ 1.5x FY27/28E core ABV (comparable to Covid-low valuations)," said the brokerage house. ICICI Securities has a 'Buy' call on HDFC shares, and it raised the target price to ₹1,080 per share from ₹1,120 earlier.

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HDFC Bank share price rose 2% in one month, but fell over 14% in three months and declined over 20% in six months. The stock has dropped 16% in one year and has eased 4% in three years. However, over the past five years, HDFC Bank share price has gained 14.5%. At 10:10 AM, HDFC Bank share price was trading 0.53% lower at ₹795.70 apiece on the BSE.