HDFC Bank Q4 FY26: Profit seen up 8% to Rs 19,053cr

Earnings day for a key bellwether bank

HDFC Bank’s March-quarter (Q4 FY26) results were closely tracked because the lender typically sets the tone for the banking earnings season. The bank had flagged that its Board would consider and approve audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. Along with the results, the board was also expected to consider a dividend for FY26 and fix the record date. Market participants were focused on how margins, asset quality and deposit mobilisation trends shaped up after a period of relatively modest sequential profit growth.

What analysts expected ahead of the results

Street estimates largely pointed to high-single digit year-on-year growth in profit, with net interest income expected to rise in the mid-single digits. One common preview estimate pegged profit after tax (PAT) at Rs 19,053 crore, implying 8.15% YoY growth and a 2.1% QoQ increase versus the preceding quarter. For context, the bank’s PAT in the year-ago quarter was Rs 17,616 crore, while the immediately preceding quarter reported Rs 18,654 crore.

Brokerage estimates also highlighted operating performance and margins as key monitorables. Operating profit for the quarter under review was expected at Rs 27,900 crore, compared with Rs 27,098 crore in the corresponding quarter last year and Rs 26,537 crore in Q3 FY26. Net interest income (NII) was expected around Rs 33,664 crore, up 4.9% YoY from Rs 32,066 crore (Q4 FY25) and compared with Rs 32,615 crore in Q3 FY26.

Asset quality and provisions: the other big variables

Previews also pointed to provisions and slippages as a key swing factor for reported earnings. Provisions were expected at Rs 3,369 crore, compared with Rs 3,193 crore in the year-ago quarter. On asset quality ratios, gross non-performing assets (GNPA) were expected to improve, with the gross NPA ratio seen at 1.20% in Q4 FY26 versus 1.33% in Q4 FY25 and 1.24% in Q3 FY26.

Net NPA was projected at 0.40%, compared with 0.43% in the previous year and 0.42% in the previous quarter. Net interest margin (NIM) was expected around 3.39%, compared with 3.50% in the same quarter last year and 3.35% in Q3 FY26. Some previews also flagged that margins could expand by roughly 4 basis points QoQ.

Date and timing: when the market expected the numbers

HDFC Bank indicated that the board meeting to approve results would be held on Saturday, April 18, 2026. The bank’s previous quarter results (October-December) were announced around 2:50 PM on January 17, 2026, and previews suggested a similar window for the March-quarter release as well. April 18 was also noted as a weekly stock market holiday, which meant the results were expected outside regular trading.

Stock price context ahead of the announcement

Ahead of the result day, HDFC Bank shares closed at Rs 799.90, up 0.55%, versus the prior close of Rs 795.50 on the BSE. With the quarter’s outcome expected to be relatively steady, investor attention was also on management commentary and the final dividend.

What HDFC Bank reported for Q4 FY26

After the preview chatter, HDFC Bank reported a 9% rise in standalone net profit to Rs 19,221 crore for the quarter ended March 31, 2026, compared with Rs 17,616 crore in the year-ago period. The bank also reported that its net revenue grew 5% to Rs 46,280 crore for Q4 FY26 from Rs 44,090 crore in Q4 FY25.

On the core earnings line, net interest income for the quarter ended March 31, 2026 grew 3.2% to Rs 33,080 crore from Rs 32,070 crore for the quarter ended March 31, 2025. The bank reported net interest margin of 3.38% on total assets, and 3.53% based on interest earning assets.

Dividend decision: final, interim and record date

The board recommended a final dividend of Rs 13 per share for FY26 and set June 19, 2026 as the record date for determining shareholder eligibility. The bank also disclosed that it had paid a special interim dividend of Rs 2.5 per equity share (Re 1 each, adjusted for bonus) on August 11, 2025. With the final dividend, the bank said the total dividend for FY26 would be Rs 15.50 per equity share, subject to shareholder approval at the forthcoming annual general meeting.

Asset quality and provisions in the reported numbers

HDFC Bank said asset quality improved in Q4 FY26. Gross non-performing assets were at 1.15% of gross advances as on March 31, 2026, compared with 1.24% as on December 31, 2025 and 1.33% as on March 31, 2025. The bank reported net non-performing assets at 0.38% of net advances as on March 31, 2026.

For the quarter ended March 31, 2026, provisions and contingencies were Rs 2,610 crore. The bank also reported a total credit cost ratio of 0.35% for the quarter.

Deposits and advances: business update points investors tracked

HDFC Bank had disclosed loan and deposit growth metrics that were monitored into the results. The bank reported 12% YoY growth in gross advances to Rs 2,960,000 crore (from ₹29.60 lakh crore) during Q4 FY26, while deposits rose 14.4% YoY to Rs 3,105,000 crore (from ₹31.05 lakh crore).

It also reported that average deposits were Rs 2,850,000 crore (from ₹28.5 lakh crore) for the March 2026 quarter, a 12.8% increase over Rs 2,520,000 crore (from ₹25.2 lakh crore) for the March 2025 quarter, and 3.6% over Rs 2,750,000 crore (from ₹27.5 lakh crore) for the December 2025 quarter.

Key numbers at a glance

Why this result mattered for banking sector watchers

As a large private sector lender, HDFC Bank’s print is often used as a reference point for the sector’s earnings quality, especially on margins and asset quality. The reported NIM and the trajectory of provisions were particularly relevant given investor focus on funding costs and credit costs. Deposit growth versus loan growth was also central because it influences the bank’s ability to sustain margins while expanding the balance sheet.

What to watch next

Beyond headline profit, investors typically look for management commentary on margins, deposit mobilisation and business outlook, as highlighted in previews. On corporate actions, the dividend recommendation will move to shareholder approval at the upcoming annual general meeting, with the record date set for June 19, 2026. The market will also track how other large banks report as the earnings season progresses.