HDFC Bank Share Price Gains After 12% Jump in Q1 Profit; NIMs Decline Marginally

Market Performance

HDFC Bank share price edged higher in early trade on Monday, July 21, following the release of its Q1 FY26 financial results.

• At 9:16 a.m., HDFC Bank share price was trading at ₹1,993.2, up 1.8% on the NSE.
• The stock reacted positively despite a slight decline in the bank’s net interest margin (NIM).

Main News

India’s largest private sector lender, HDFC Bank, delivered solid financial performance for the quarter ended June 30, 2025.

• Net profit rose to ₹18,155 crore, marking a 12% year-on-year (YoY) increase from ₹16,175 crore in Q1 FY25.
• This performance came amid rising deposit costs that pressured margins slightly.

However, while profits showed solid growth, the bank’s core NIM declined to 3.35%, down from 3.46% in the previous quarter.

Company Financials Breakdown

Revenue

• Interest income stood at ₹77,470 crore, reflecting a 6% YoY growth.

Net Interest Income (NII)

• NII for the quarter came in at ₹31,438 crore, up 5.4% YoY.

EBITDA (Operating Performance)

• Total operating expenses increased to ₹17,434 crore, up 4.9% YoY.
  • Employee expenses: ₹6,158 crore
  • Other overheads: ₹11,276 crore

Net Profit

• Net profit surged to ₹18,155 crore, up from ₹16,175 crore in the corresponding quarter of the previous year.

Net Interest Margins (NIMs)

• NIM dropped slightly to 3.35% compared to 3.46% in the March 2025 quarter.

This indicates that deposit costs are rising faster than the yield from bank loans and investments, which slightly affected profitability margins.

Company Details

HDFC Bank continues to hold its ground as India’s leading private lender, maintaining strong operational efficiency. The bank is also focusing on balancing its asset-liability structure by actively managing cost of funds and credit-deposit ratios.

During the quarter, HDFC Bank also recorded one-off gains linked to the listing of its subsidiary, HDB Financial Services. These gains were prudently utilized to strengthen its provision buffers, showcasing the bank’s commitment to maintaining a resilient balance sheet.

Summary of the Article

HDFC Bank share price moved up following the announcement of a 12% YoY increase in quarterly net profit. While the net interest margin (NIM) saw a marginal drop due to rising deposit costs, the overall financial performance remained steady.

The bank’s robust financials, including strong revenue and net profit growth, have helped boost investor confidence. However, the pressure on margins will be a key metric to watch in the upcoming quarters.