---
title: "HDFC Bank Q4 Results: Strong Loan Growth Offsets NIM Pressure"
description: "HDFC Bank reports 22% profit growth in Q4 FY26 on the back of healthy loan book expansion, though net interest margins compress slightly."
author: "oliver-grant"
published: "2026-04-26T00:00:00.000Z"
tags: ["banking","stocks","earnings"]
canonical: "https://smartmoney.report/research/1"
---

## Quarterly Performance Snapshot

| Metric | Q4 FY26 | Q4 FY25 | YoY Change |
|--------|---------|---------|------------|
| Net Profit | ₹17,800 Cr | ₹14,600 Cr | +22% |
| NII | ₹31,500 Cr | ₹28,800 Cr | +9.4% |
| NIM | 3.42% | 3.58% | -16 bps |
| Gross NPA | 1.24% | 1.33% | -9 bps |
| Loan Growth | 18.5% | 16.2% | — |

## Key Takeaways

### Positives
- Loan book grew 18.5% YoY to ₹26.8 lakh crore, driven by retail and SME segments
- Asset quality improved with gross NPA declining to 1.24%
- Deposit growth accelerated to 16% YoY
- CASA ratio stable at 42%

### Concerns
- Net interest margin compressed by 16 bps due to competitive deposit pricing
- Operating expenses grew 15% YoY as branch network expanded
- Credit cost inched up slightly in unsecured retail book

## Valuation and Outlook

At current price of ₹1,840, the stock trades at 2.8x FY27E book value and 18x FY27E earnings. We maintain our **BUY** rating with a target price of ₹2,100 (12-month horizon).

The merger integration is largely complete, and the bank is well-positioned to deliver 15-18% earnings CAGR over FY27-FY29.