HDFC Bank Q2 Results Preview: Profit, Margins May Slip Despite Strong Loan Growth; Stable Asset Quality Likely

Today, HDFC Bank is going to release its financial results for the September 2025 quarter (Q2FY26). According to multiple brokerages, the bank is anticipated to release a disappointing set of Q2FY26 results, with profitability probably declining sequentially due to margin pressure and lower treasury income.

HDFC Bank Q2 Preview By ICICI Securities

For the second quarter of FY26E, HDFC Bank's Net Interest Income (NII) is projected to be Rs 31,607 crore, representing a 0.5% QoQ and 5% YoY rise. Pre-Provision Operating Profit (PPOP) for the bank is anticipated to be Rs 25,778 crore, representing a rise of 4.3% YoY but a 27.9% sequential fall.

Profit After Tax (PAT) is expected to be Rs 17,197 crore, representing a 2.2% YoY growth and a 5.3% QoQ fall, while Profit Before Tax (PBT) is anticipated to be Rs 22,778 crore, up 7% QoQ and 3.5% YoY. It is projected that advances might rise to Rs 27,388,284 crore, or 4.2% QoQ and 9.8% YoY.

The bank's Net Interest Margins (NIMs) are expected to moderate by 5 bps QoQ and 25 bps YoY, settling at 3.45%, while slippages are estimated at Rs 7,800 crore, down 13.3% QoQ.

HDFC Bank Q2 Preview By InCred Equities

The anticipated Net Interest Income (NII) for HDFC Bank for Q2FY26 is Rs 31,500 crore, representing a 4.5% year-on-year (YoY) growth and a moderate 0.1% quarter-on-quarter (QoQ) growth. Pre-Provision Operating Profit (PPOP) for the bank is expected to be Rs 26,300 crore, representing a 6.5% YoY growth but a 26.4% sequential fall.

At Rs 16,800 crore, profit after tax (PAT) is predicted to be down 7.3% on a quarter-on-quarter basis but almost flat on a year-on-year (0.1%) basis. Credit costs are projected at 57 bps, which is a major sequential drop of 163 bps, while margins are forecast to moderate to 3.26%, down 9 bps QoQ and 20 bps YoY.

It is anticipated that advances will reach Rs 27,43,400 crore, representing a 9.9% YoY and 4.4% QoQ rise, indicating robust loan book momentum in spite of margin pressure.

HDFC Bank Q2 Preview By Axis Direct

With a slight rise in core lending activity, HDFC Bank's Net Interest Income (NII) for Q2FY26 is projected to be Rs 31,034 crore, down 1.3% sequentially but up 3.1% annually. Although it improved 8.1% YoY, non-interest income is expected to drop 42.9% on a quarter-on-quarter basis to Rs 12,415 crore.

Pre-Provision Operating Profit (PPOP) is expected to reach Rs 25,636 crore, up 3.8% YoY but down 28.3% QoQ as a modest rise in operating costs is offset by lower treasury income. While net profit is anticipated to be about Rs 16,908 crore, indicating a 6.9% sequential dip but a 0.5% YoY growth, provisions are predicted to drop precipitously by 79% QoQ to Rs 3,031 crore.

The bank's earnings per share (EPS) are seen at Rs 22.1, almost flat YoY. The pace of business expansion is steadily rising, while asset quality is predicted to stay stable. However, fluctuations in repo rates may cause margins to drop substantially.

Management's comments on deposit accretion, credit growth, and the margin trajectory in the upcoming quarters are important metrics to keep an eye on.