HDFC Bank: Shares gain nearly 2% after 12% Q1 profit rise; brokerages raise targets

HDFC Bank share price opened in the green on Monday, July 21, after India’s largest private lender reported a 12 per cent year-on-year jump in net profit for the first quarter of FY26. The stock rose 1.8 per cent to Rs 1,993.2 on the NSE in early trade, driven by strong earnings and positive commentary from leading brokerages.

HDFC Q1 results highlights

In its Q1 results, HDFC Bank posted a standalone net profit of Rs 18,155 crore for the quarter ended June 30, 2025, up from Rs 16,175 crore in the same quarter last year. Interest income rose 6 per cent to Rs 77,470 crore, while net interest income (NII) stood at Rs 31,438 crore, reflecting a 5.4 per cent increase year-on-year. However, the bank’s net interest margin (NIM) declined to 3.35 per cent from 3.46 per cent in the March quarter due to rising deposit costs.

Operating expenses rose 4.9 per cent year-on-year to Rs 17,434 crore, including Rs 6,158 crore in employee expenses and Rs 11,276 crore under other overheads. Despite margin pressure, analysts view the bank’s Q1 performance as stable, with improving prospects for the second half of the fiscal.

Should you buy, sell or hold HDFC

Several brokerages revised their HDFC Bank stock forecast and raised target prices following the results:

Goldman Sachs maintained a Buy rating and increased its target price to Rs 2,327 from Rs 2,306.

Jefferies reiterated its Buy call, raising its target to Rs 2,400, and listed HDFC Bank among its top picks.

Nomura maintained a Buy rating with a target of Rs 2,190, expecting RoA/ROE of 1.7–1.9 per cent and 13–14.5 per cent, respectively, over FY26–28.

CLSA termed the Q1 performance “rock solid,” citing strong deposit growth and asset quality. It raised its target to Rs 2,300.

Macquarie and Bernstein also maintained Outperform ratings, both with target prices of Rs 2,400 and Rs 2,300, respectively.

Overall, the sentiment around HDFC Bank stock remains bullish, with analysts expecting loan growth to accelerate, retail demand to pick up, and merger synergies to support profitability in the coming quarters.