1. At a Glance
HDFC Bank, India’s private banking juggernaut, dropped Q1FY26 results with a mic in one hand and a dividend cheque in the other. A 1:1 bonus, ₹5 special dividend, and ₹17,090 Cr in net profit—yes, all before lunch.
2. Introduction with Hook
Imagine if the Indian banking system were a cricket team—HDFC Bank would be the Virat Kohli. Reliable, aggressive when needed, and oh-so-damn consistent.
- Net Profit Q1FY26: ₹17,090 Cr
- Market Cap: ₹15 lakh Cr+
- Bonus + Dividend: Issued like Diwali sweets
The bank’s earnings call wasn’t just an event—it was a flex. From profit consistency to market dominance, HDFC isn’t just surviving—it’s bench-pressing the economy with one hand.
3. Business Model (WTF Do They Even Do?)
HDFC Bank operates a traditional yet power-packed banking model:
- Retail Banking (32%) – Personal loans, savings, credit cards. Bread and butter.
- Corporate Banking (38%) – Working capital, project finance. Big boy lending.
- Treasury (29%) – Trading, investments, hedging. Casino for grown-ups.
- Other (1%) – Remittances, third-party fees, stuff that sounds boring but pays.
With a pan-India presence, world-class digital infra, and credit underwriting that rivals the RBI’s own paranoia, HDFC is the default choice for everyone from salaried folks to CFOs of listed companies.
4. Financials Overview
Quarterly Snapshot (Q1 FY26):
| Metric | Value (₹ Cr) | YoY Growth |
|---|---|---|
| Net Revenue | 87,372 | +7% |
| Interest Income | 47,709 | +4% |
| Other Income | 45,683 | +39% |
| Profit Before Tax | 20,850 | -8% |
| Net Profit | 17,090 | -1.3% |
TTM Performance:
- Revenue: ₹3.42 lakh Cr
- Net Profit: ₹73,343 Cr
- EPS (TTM): ₹92.26
- ROE: 14.4%
5. Valuation
- Current Price: ₹1,957
- Book Value (Mar’25): ₹682
- P/B Ratio: 2.87x
- P/E Ratio: 21.3x
- Dividend Yield: 1.12%
EduInvesting Fair Value Range (FY26E):
₹2,050 – ₹2,350
Assuming a stable P/E band of 20-23x and EPS growth of 10%, valuation remains rich but reasonable for a systemic bank. Also—those bonuses and dividends? The cherry and the whipped cream.
6. What’s Cooking – News, Triggers, Drama
- 1:1 Bonus Issue – Everyone loves a freebie, even if it’s psychological.
- ₹5 Special Dividend – In case you needed chai-pakoda money.
- Capital Raised to ₹2,000 Cr – For future-proofing or a war chest?
- Earnings Dip – PBT down 8%, net profit flat. CFO calls it “seasonal.” Markets call it “Hmm?”
- Merger Afterglow – Post-HDFC Ltd merger integration still being absorbed by balance sheet muscles.
7. Balance Sheet
| Item | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|
| Equity Capital | 760 | 765 |
| Reserves | 455,636 | 521,024 |
| Deposits | 23,76,887 | 27,10,898 |
| Borrowings | 7,30,615 | 6,34,606 |
| Total Liabilities | 40,30,194 | 43,92,110 |
Key Takeaways:
- Deposits grew 14% YoY
- Borrowings reduced—a rare flex
- Capital adequacy solid; no cracks even under microscope
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash (₹ Cr) |
|---|---|---|---|---|
| FY24 | 19,069 | 16,600 | -3,983 | 31,687 |
| FY25 | 1,27,242 | -3,651 | -1,02,478 | 21,113 |
Key Notes:
- Operating Cash Flow explosion in FY25
- Financing Cash Flow negative due to debt repayments + dividend
- Still net cash positive and comfy
9. Ratios – Sexy or Stressy?
| Ratio | FY24 | FY25 |
|---|---|---|
| ROE | 17% | 14% |
| ROCE | 7.5% | 7.5% |
| NIM | ~4.1% | ~3.9% |
| P/B | 2.87 | 2.9x est |
| CRAR | >18% | >18% |
Verdict: Slight dip in profitability metrics but still no red flags. NIM compression is real—but not lethal.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) |
|---|---|---|---|---|
| FY23 | 1,70,754 | 46,149 | 82.4 | 39.9% |
| FY24 | 2,83,649 | 65,446 | 84.3 | 39.9% |
| FY25 | 3,36,367 | 73,440 | 92.5 | 38.8% |
Revenue doubled in 2 years post-merger. Net profit followed. And despite some margin squeeze, HDFC still runs tighter than most PSUs dream of.
11. Peer Comparison
| Bank | P/E | ROE | Net Profit (TTM) | Deposits (₹ Cr) | P/BV |
|---|---|---|---|---|---|
| HDFC Bank | 21.3 | 14.4% | ₹73,343 Cr | ₹27.1 lakh Cr | 2.87x |
| ICICI Bank | 19.2 | 18% | ₹52,891 Cr | ₹15.6 lakh Cr | 3.26x |
| Kotak Bank | 19.3 | 15.4% | ₹22,091 Cr | ₹4.8 lakh Cr | 2.7x |
| Axis Bank | 12.2 | 16.3% | ₹27,862 Cr | ₹9.4 lakh Cr | 1.82x |
| IndusInd Bank | 25.6 | 4.1% | ₹2,643 Cr | ₹3.6 lakh Cr | 1.05x |
Punchline: HDFC is no longer the cheapest—ICICI is catching up on performance and perception. But brand power? Still untouchable.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: Now 0% (post-merger; earlier 25%)
- FII Holding: 48.84%
- DII Holding: 35.77%
- Public: 15.19%
- No. of Shareholders: 3.7 million+
Bonus + Dividend Announcement:
- 1:1 Bonus
- ₹5 Special Interim Dividend
- Authorized capital increased to ₹2,000 Cr
13. EduInvesting Verdict™
If banks were wrestlers, HDFC Bank would be Brock Lesnar—big, scary, technically brilliant, and rarely knocked out. Q1 FY26 was more of a body slam than a mic drop. While EPS dipped and margins tightened, the Board just casually threw a bonus and dividend to distract investors—and it worked.
This isn’t just a stock. It’s India’s banking motherboard.
Metadata
– Written by EduInvesting Research | July 20, 2025
– Tags: HDFC Bank, Banking, Bonus Issue, Private Sector Banks, Q1FY26, Dividend, Valuation, ICICI, PSU vs Private, Concall
