HDFC Bank Profit Jumps 19% Year-on-Year Despite Sequential Dip
The bank's profit surged 19.3% compared to last year, though it slipped 3.3% from the previous quarter as net profit margin eased.
HDFC Bank's Q1 FY27 profit grew 19.3% year-on-year to ₹20,383 crore. Revenue rose 3.7%, but net profit margin declined sequentially from the prior quarter's high.
HDFC Bank has delivered a strong year-on-year earnings performance for the quarter ended June 2026, with profit surging by 19.3% even as revenue growth remained modest. The results highlight the bank's ability to expand its bottom line significantly faster than its top line, a sign of improving profitability. However, a sequential comparison shows profit dipped from the previous quarter, suggesting some near-term pressure on margins.
The bank's revenue for Q1 FY27 stood at ₹90,575 crore, a 3.7% increase from the same period last year and a 3.9% rise from the previous quarter. Profit after tax reached ₹20,383 crore. The net profit margin expanded by 290 basis points year-on-year to 22.5%, reflecting this profit-led growth. Yet, compared to the 24.2% margin in Q4 FY26, profitability has softened slightly.
A look at the last five quarters shows a clear trajectory of profit growth from a lower base a year ago.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Jun 2026 | Mar 2026 | Jun 2025 |
| Revenue (₹ Cr) | 90,575.33YoY +3.7% | 87,182.50 | 87,371.87 |
| Profit (₹ Cr) | 20,382.69YoY +19% | 21,074.22 | 17,090.43 |
| Net Profit Margin (%) | 22.5YoY +15% | 24.2 | 19.6 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at a healthy 23.5%.
- The bank maintains a solid return on equity (ROE) of 14.41%.
- Its stock trades at a P/E of 14.8, which is an 18.2% premium to the industry average.
While the quarterly profit momentum has paused, the robust year-on-year improvement and a TTM margin above 23% indicate underlying earnings strength. The coming quarters will reveal if the bank can sustain its elevated profitability levels amid evolving market conditions.
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· HDFCBANK
(BSE)
ISIN: INE040A01034
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