HDFC Bank Q1 results: Net profit may rise up to 8% YoY on strong loan growth and lower provisions; stock trades higher

India's largest private sector lender, HDFC Bank, will announce its June quarter results on July 18, 2025. Ahead of the results, the bank released its business update for the first quarter of FY27.

Q1FY26 business updates

HDFC Bank reported a 15.4% YoY increase in gross advances to ₹30.61 lakh crore during the June quarter. The bank’s deposits grew by 14.7% YoY, totalling ₹31.70 lakh crore. Its current account-savings account (CASA) deposits also rose by 9.4% YoY, reaching ₹10.2 lakh crore during the quarter.

As per experts, HDFC Bank could report high single-digit growth in net profit and net interest income (NII) with key focus on business outlook during the June quarter.

HDFC Bank is expected to report 5% to 8% YoY growth in net profit to ₹18,950 to ₹19,230 crore. Sequentially, net profit could remain flat. Net profit improve during the quarter aided by lower provisions and strong loan growth. The private lender registered a standalone net profit of ₹18,155 crore in Q1FY26 and ₹19,221 crore in the previous quarter.

Net interest income (NII) is likely to increase by 6% to 8% YoY in the range of ₹33,900 to ₹34,250 crore, while remaining flat compared to the previous quarter. HDFC Bank reported an NII of ₹33,082 crore in the previous quarter, while it stood at ₹31,438 crore in Q1FY26. Net interest margins likely to remain flat sequentially.

HDFC Bank investors will look forward to management commentary on credit and deposit growth, margin outlook and track key performance indicators like net interest margin, gross and net non-performing assets (NPAs) during the quarterly result announcement.

Ahead of the Q1 result announcement, HDFC Bank shares are trading 1.3% higher at ₹819 on Friday, July 17. So far this year, HDFC Bank shares are down over 17%.

Technical outlook

HDFC Bank is attempting a breakout above the ₹819 resistance zone after consolidating near its recent highs. The stock remains above the rising 20-day and 50-day EMAs, keeping the short-term structure positive.

A sustained close above ₹820–825 could open the way towards ₹840 and ₹855. Immediate support is placed near ₹805–800, followed by the 50-day EMA around ₹796. Momentum is mildly bullish, though ADX near 20 suggests the trend still needs stronger confirmation.

Options outlook

As of 17 July, the options market is pricing in a move of about ±3.5% in HDFC Bank as of noon, based on the at-the-money 820 strike and current implied volatility.

This expectation opens the door for strategies like long or short straddles, depending on how a trader views potential price movement and volatility.

Before getting into those strategies, it helps to look at how the stock has reacted to earnings over the past 12 quarters.

Options strategy for HDFC Bank

With the options market pricing in a ±3.5% move for HDFC Bank ahead of the 28 July expiry, traders may look at straddle strategies.

A long straddle means buying both an at-the-money call and put with the same strike and expiry. This setup works if the stock moves more than ±3.5% in either direction.

A short straddle takes the opposite view. It involves selling both the ATM call and put, aiming to benefit if the stock stays within that ±3.5% range and volatility eases.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. We do not recommend any particular stock, securities, or trading strategies. The securities quoted are exemplary and not recommendatory. The stock names mentioned in this article are purely to show how to do an analysis.