Archive · 22 Jul 2026
HDFC Bank Shares Drop After Q1FY27 Results
HDFC Bank's share price has been falling for three straight sessions after it reported its first-quarter earnings for FY27.
The bank's net profit increased by 5% year-on-year, but its net interest margin decreased.
Despite this, brokerages like MOFSL and Kotak Securities recommend buying the stock for long-term investment due to its strong balance sheet and potential for future profitability.
However, some investors might prefer to wait due to near-term pressure on margins.
HDFC Bank's share price fell 1.2% to ₹752.45 on July 22, 2026, marking a three-session decline of over 8%.
The bank reported a net profit of ₹19,060 crore for Q1FY27, a 5% year-on-year increase.
Net interest income increased by 7% year-on-year to ₹33,534 crore.
Gross non-performing assets (NPAs) declined over 3% year-on-year to ₹35,846 crore.
Brokerages maintain a 'Buy' rating with a target price of ₹1,050, citing long-term investment potential despite near-term pressure on margins.
- Who
- HDFC Bank, India's largest private sector lender
- What
- Share price decline and Q1FY27 results
- When
- July 22, 2026
- Where
- BSE (Bombay Stock Exchange)
- Why
- Operational challenges, governance issues, and near-term pressure on net interest margins
Buy on Dip
Avoid for Now
Long-term Investment Potential
Buy on Dip
HDFC Bank is a defensive compounder with predictability, best-in-class underwriting, and a dominant retail franchise. It offers stability and compounding for long-term investors.
Avoid for Now
Near-term pressure on net interest margins and the absence of immediate triggers suggest caution. Investors should wait for better market conditions.
Brokerage Ratings
Buy on Dip
Brokerages like MOFSL and Kotak Securities have maintained 'Buy' ratings with a target price of ₹1,050, citing strong balance sheet and long-term earnings potential.
Avoid for Now
While brokerages are optimistic, the current market conditions and near-term pressure on margins warrant a wait-and-watch approach.
- Current Share Price
- ₹752.45
- Year-to-Date Decline
- 24%
- Q1FY27 Net Profit
- ₹19,060 crore
- Net Interest Income (NII)
- ₹33,534 crore
- Gross NPAs
- ₹35,846 crore
- Net NPAs
- ₹12,357 crore
- Net Interest Margin (NIM)
- 3.26%
- Total Balance Sheet
- ₹43.97 lakh crore