EarningsQ2 2027 Earnings Report
MX:HDBN Q2 2027 EPS Results
Actual EPS$7.39
Consensus EPS$7.31
Beat/MissBeat by +$0.07
One Year Ago EPS$7.35
MX:HDBN Q2 2027 Revenue Results
Actual Revenue$249.29B
Expected Revenue$91.16B
Beat/MissBeat by +$158.13B
YoY Revenue Growth-0.34%
Earnings Announcement Details
QuarterQ2 2027
Date10/17/2026
TimeBefore Open
Conference CallSaturday, October 17, 2026
MX:HDBN Upcoming Earnings
Hdfc Bank's next earnings date is estimated for January 11, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:HDBN Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, supported by strong deposit and AUM growth, accelerating retail and MSME momentum, improving operating productivity, low credit costs, healthy profitability and continued technology investment. The main challenges were the decline in NIM, flat cost of funds, one-off deposit outflows, a below-preferred LCR level, PSL shortfalls, potential insurance commission pressure and leadership transitions. Management nevertheless indicated that margins had reached a bottom and that the trajectory should improve from the next quarter.Company Guidance
Supportive Economic Environment
Management said Q1 FY '27 GDP growth was better than anticipated, with sustained momentum reflected in industrial production, e-way bills, cargo activity and credit growth. Passenger vehicle and 2-wheeler sales grew upwards of 30-plus percentage, consumer durables grew about 11% year-on-year, and the special FCNR (B) swap window generated record inflows of about $133 billion and helped stabilize the currency.
Strong Deposit and Liability Franchise Growth
Deposits increased 18.8% year-on-year on a reported basis, including a 4 percentage point lift from the special FCNR (B) window. CASA grew about 10.8% overall, while retail CASA grew 11.2% year-on-year versus 9% a year ago. The bank added about 1.7 million liability relationships in Q2, up 25% from Q1 and 33% from the fourth quarter of last year.
Accelerating Asset Growth and Retail Disbursements
Total AUM grew 15.3% year-on-year, including a 1.9% impact from FCNR (B) leverage, with SME and retail assets leading growth. Retail disbursements exceeded INR 90,000 crores in Q2 FY '27 versus INR 76,000 crores in Q1. Retail assets ex agri grew 11.2% annually as of September 2026, compared with 9.1% in June 2026 and 7.4% in March 2026.
Credit Card and MSME Momentum
New credit card issuances reached 1.4 million, growing nearly 19% quarter-on-quarter. September 2026 MSME and mid-market EOP loan growth accelerated to 23.5% year-on-year versus 17% to 18% growth levels in the preceding quarters.
Leadership Position in ECLGS 5.0
The bank successfully leveraged the ECLGS 5.0 opportunity, with ECLGS disbursals of INR 41,000 crores, described as the highest across all banks when the scheme reached its targeted levels in August 2026.
Improved Operating Productivity and Service Turnaround
Product delivery turnaround times declined by 10% to 15%, while service delivery turnaround times declined by 30% during the quarter. Customer visits per resource per day increased by about 50% versus the prior quarter, savings accounts per branch per day increased 19% between Q2 and Q1, and core incremental deposits per branch per day increased 2.3x from Q1. Daily disbursal run rates for key retail and MSME products increased 10% to 20% versus the prior quarter.
Pristine Asset Quality and Low Credit Costs
GNPA was 1.11%, 13 basis points lower year-on-year, while credit costs remained low at 44 basis points. Risk-weighted total assets were 69%. Management said slippages were improving across most portfolios, supported by a benign credit environment.
Healthy Profitability
The bank reported ROA of 1.8% and quarterly PAT of INR 195 billion, representing approximately 12.7% growth when trading gains were excluded.
Expansion of AI and Digital Protection Capabilities
The bank introduced H-Security, a unified protection stack, Kavach and Secure Lock to enhance digital safety and fraud protection. It also launched product-journey applications, AI conversational banking and an AI collections bot, and strengthened real-time fraud prevention capabilities.
Business Banking and Retail Mix Improvement
Retail growth increased from about 7.9% to 8% a year earlier to 12%, while business banking, consisting largely of MSME, grew 28% year-on-year. Corporate banking grew 2.8% sequentially and about 16.4% year-on-year, with management emphasizing a mix of working capital, term and project finance.
Stable Agricultural Asset Quality Despite Monsoon Shortfall
Despite a shortfall and uneven distribution of the monsoon, kharif sowing remained broadly constant, with only a marginal decrease of about 1.5% to 2%. As of September compared with June, gross NPA on the agriculture portfolio remained largely constant, with no signs of concern or deterioration.
Productivity Benefits from Technology Investment
Management said the bank is moving out of the technology investment phase and beginning to harness its technology more fully. Over a five- to six-year period, headcount grew at a 10% compounded annual rate while volumes grew at about 18% to 19%, resulting in productivity gains.
Expected Margin Tailwind from Rate Cycle
Approximately 70% of the loan book is floating rate, and management said the 25 basis point rate change in October should largely be factored in by December. The bank expects the margin trajectory to be neutral to positive and said margins should begin moving upward from the next quarter, although the full-quarter FCNR impact will offset some of the benefit.
Strong Distribution and Technology Platform
Management highlighted that the branch distribution network has doubled over the last five years, with branch vintage expected to support future growth. It also cited the completed HDFC Limited merger, strengthened core technology capabilities, settled governance matters and a platform designed to support future product and service delivery.
MX:HDBN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed