HDFC Bank posts Q2 FY27 profit in line and analyst raises earnings estimates, sets INR 925 target
HDFC Bank reported Q2 FY27 profit of INR 195.1 billion, matching consensus. Net interest income rose 10% YoY to INR 346.2 billion, while net interest margin slipped 10 basis points QoQ to 3.16% of assets. Advances and deposits grew 16.4% and 18.8% YoY respectively, pushing the credit‑deposit ratio to 96.0%. Motilal Oswal lifted its FY27 and FY28 earnings forecasts by 3.5% each and reaffirmed a buy rating with a target price of INR 925.
Why it matters
The higher earnings forecasts and the INR 925 target price may lift the bank’s valuation for investors, as noted by Motilal Oswal. The in‑line profit and strong loan‑deposit growth support the analyst’s optimistic outlook.
Key facts
- 1Profit for Q2 FY27 was INR 195.1 billion, a 5% YoY and 2% QoQ increase, in line with estimates. investmentguruindia.com
- 2Net interest income grew 10% YoY and 3% QoQ to INR 346.2 billion. investmentguruindia.com
- 3Net interest margin on total assets fell 10 basis points QoQ to 3.16% (estimate 3.18%). investmentguruindia.com
- 4Advances rose 16.4% YoY and 5.2% QoQ to INR 31.96 trillion. investmentguruindia.com
- 5Deposits grew 18.8% YoY and 4.9% QoQ to INR 33.27 trillion, raising the credit‑deposit ratio to 96.0%. investmentguruindia.com
- 6Motilal Oswal increased FY27 and FY28 earnings estimates by 3.5% each and set a target price of INR 925. investmentguruindia.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.