HDFC Bank is set to announce its financial results for the September 2025 quarter (Q2FY26). Analysts expect the bank’s performance to be underwhelming, with profitability likely declining due to margin pressure and reduced treasury income. This anticipated outcome has been highlighted by various brokerages, indicating a challenging quarter for the bank.

ICICI Securities forecasts HDFC Bank’s Net Interest Income (NII) for Q2FY26 at Rs 31,607 crore. This represents a modest 0.5% increase quarter-on-quarter (QoQ) and a 5% rise year-on-year (YoY). The Pre-Provision Operating Profit (PPOP) is expected to be Rs 25,778 crore, showing a 4.3% YoY increase but a significant 27.9% QoQ decline.

The Profit After Tax (PAT) is projected at Rs 17,197 crore, marking a 2.2% YoY growth but a 5.3% QoQ decrease. Meanwhile, Profit Before Tax (PBT) is anticipated to reach Rs 22,778 crore, reflecting a 7% QoQ and 3.5% YoY increase. Advances are expected to grow to Rs 27,388,284 crore, up by 4.2% QoQ and 9.8% YoY.

InCred Equities predicts HDFC Bank’s NII for Q2FY26 at Rs 31,500 crore, indicating a 4.5% YoY growth and a slight 0.1% QoQ increase. The PPOP is expected to be Rs 26,300 crore, showing a 6.5% YoY growth but a notable 26.4% sequential decline.

The PAT is forecasted at Rs 16,800 crore, down by 7.3% QoQ but nearly flat on a YoY basis with just a 0.1% change. Credit costs are projected at 57 basis points (bps), marking a significant sequential drop of 163 bps. Margins are anticipated to moderate to 3.26%, down by 9 bps QoQ and 20 bps YoY.

Axis Direct’s Analysis of HDFC Bank’s Q2FY26

Axis Direct estimates HDFC Bank’s NII for Q2FY26 at Rs 31,034 crore, reflecting a decrease of 1.3% sequentially but an annual increase of 3.1%. Non-interest income is expected to fall sharply by 42.9% QoQ to Rs 12,415 crore despite an annual improvement of 8.1%.

The PPOP is projected at Rs 25,636 crore, up by 3.8% YoY but down by 28.3% QoQ due to higher operating costs and lower treasury income. Net profit is anticipated around Rs 16,908 crore, showing a sequential dip of 6.9% but a slight YoY growth of 0.5%. Provisions are predicted to drop significantly by 79% QoQ to Rs 3,031 crore.

The bank’s earnings per share (EPS) are expected to remain almost flat YoY at Rs 22.1. Business expansion continues steadily while asset quality remains stable; however, repo rate fluctuations might impact margins significantly.

Management’s insights on deposit growth, credit expansion, and future margin trends will be crucial metrics to watch in upcoming quarters.