HDFC Bank Q2 FY27 Results (NSE: HDFCBANK)
Signal: Steady quarter
The read
The disclosed standalone trajectory is mixed: total income grew 6.8% YoY and pre-provision operating profit accelerated 17.4% YoY, but PAT grew only 5.2% to ₹19609.96 crore as provisions rose 2.1% YoY and tax expense rose 10.7% YoY; asset quality improved to 1.11% gross NPA and 0.37% net NPA, while negative H1 operating cash flow of ₹28967.37 crore remains a quality watchpoint.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| EBIT margin | 0% |
P&L walk
The supplied consolidated statement extract discloses interest earned of ₹95131.63 crore, +9.4% YoY and +5.0% QoQ; total income, provisions, PAT and EPS are not present in the extract.
Key positives
- Standalone total income reached ₹97267.62 crore, +6.8% YoY and +5.5% QoQ.
- Pre-provision operating profit rose 17.4% YoY to ₹29483.42 crore, ahead of total-income growth by 10.6 percentage points.
- Gross NPA improved to 1.11% from 1.24% a year earlier and net NPA improved to 0.37% from 0.42%.
Key concerns
- Standalone PAT growth of 5.2% YoY to ₹19609.96 crore lagged 17.4% operating-profit growth as provisions rose 2.1% YoY and tax expense rose 10.7% YoY.
- H1 operating cash flow was negative at ₹28967.37 crore despite H1 PAT of ₹38569.68 crore, reflecting heavy investment in advances and investments.
- Capital adequacy declined to 18.87% from 19.96% a year earlier, while advances grew to ₹3195566.06 crore.
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