HDFC Bank share price rises 2% post Q1 results, dividend, and bonus announcement: Buy or sell?

Stock Market Today: HDFC Bank share price gained more than 2% in the morning trades on Monday post Q1 results, dividend, and bonus announcement. The Q1 results, dividend, and bonus announcements were made by HDFC Bank over the weekend.

The bank's net revenue for the quarter ended June 30, 2025, stood at ₹53,170 crore, up 31% from the previous year's ₹40,510 crore. The same though were also helped by transaction gains of ₹9,130 crore the bank received from an offer for sale in the IPO of its subsidiary HDB Financial Services .; however, overall analysts, such as those at Motilal Oswal Financial Services, said that it was a steady quarter, with growth poised to gain traction. Those at Jefferies India Pvt Ltd said that for 1QFY26, HDFC Bank's net profit of around ₹18160 crore, up 12% year-on-year, was ahead of estimate; the key positives were better loan growth, healthy deposit growth, a relatively lower fall in net interest margin, and stable asset quality.

Analysts views on HDFC Bank's outlook and recommendations

As per Jefferies India Pvt Ltd, HDFC Bank remains among their top picks in the sector. While Jefferies has trimmed their estimates for FY26-27 marginally to factor in the recent cut in repo rate and deposit rate cuts, they expect a higher compression in margin in 2Q and improvement thereafter. They retain our Buy call with a roll-forward of the price target to ₹2,400 (from ₹2,340 earlier).

HDFC Bank posted a steady quarter with a slight earnings beat due to tax reversals, as per Motilal Oswal Financial Services. The NIM contracted 11 bps sequentially, and this, as per MOFSL, is expected to moderate further in 2Q due to the rate cut impact.

More to come…

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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