HDFC Bank share price hits 52-week high after Q2 results. Should you buy, sell or hold?

HDFC Bank share price gained over a percent to hit a 52-week high in early trade on Monday after the private lender announced its Q2 results. HDFC Bank shares rose as much as 1.74% to a fresh high of ₹1,020.00 apiece on the BSE.

The largest private lender in India, HDFC Bank reported a standalone net profit growth of 10.8% at ₹18,641.28 crore in the second quarter of FY26. The bank earned a net profit of ₹16,820.97 crore in the corresponding quarter of last fiscal year.

The bank’s Net Interest Income (NII) in Q2FY26 grew 4.8% to ₹31,551.5 crore from ₹30,114 crore, year-on-year (YoY). Core net interest margin was at 3.27% as against 3.35% for the prior quarter ended June 30, 2025.

Asset quality during the quarter improved sequentially as Gross NPA declined 7.42% QoQ to ₹34,289.48 crore, while Net NPA decreased 6.75% QoQ to ₹11,447.29 crore. Gross NPA ratio dropped 16 bps QoQ to 1.24% and Net NPA ratio fell 5 bps QoQ to 0.42%.

Analysts have maintained their bullish view on HDFC Bank shares after the announcement of Q2 results. Here’s what brokerages say:

Should you buy, sell or hold HDFC Bank shares?

HDFC Bank’s credit growth leaped 10% YoY in Q2, largely matching system credit growth, while margin contraction was contained at 10 bps QoQ to 3.4%.

“With systemic liquidity (after the recent CRR cut) and retail/SME growth impulses improving, we believe HDFC Bank is well set to outpace system growth and some peers in FY27E. This, along with the shifting portfolio mix toward retail/SME and the substitution of high-cost eHDFCL borrowings with deposits, should drive the bank’s margins over FY27-28E and, in turn, the RoA to 1.9% - 2.0%,” said Anand Dama, Senior Research Analyst at Emkay Global Financial Services Ltd.

Emkay Global retained a ‘Buy’ rating on the stock and raised HDFC Bank share price target by ~7% to ₹1,225 apiece, valuing the standalone bank at 2.6x Sep-27E ABV and subsidiary at ₹130 per share.

Nuvama Institutional Equities said HDFC Bank reported in-line earnings with 8 bps QoQ decline in NIM, strong 4.5% QoQ loan growth, a sharp decline in specific credit cost led by lower slippage and a lumpy upgrade and strong fees.

“Non-agri slippages dipped 7% QoQ while total slippages fell 18%. NPLs fell sharply due to lower slippage and a lumpy upgrade of 10 bps of loans. Core credit cost decreased sharply from 56 bps to 28 bps, but total credit cost was 52 bps versus 2.2% QoQ,” Nuvama noted.

It retained a ‘Buy’ call on the stock and raised HDFC Bank share price target to ₹1,170 apiece from ₹1,135 earlier.

“HDFC Bank has already scaled up growth to system level and we expect NIM to improve Q3FY26 onwards. Given superior asset quality and improving core earnings, we reckon the stock shall outperform,” Nuvama said.

Technical Outlook

HDFC Bank share price is on the verge of a bullish rectangle pattern breakout, with the upper boundary placed around ₹1,020, noted Anshul Jain, Head of Research at Lakshmishree Investments.

“A decisive breach and sustained close above this level will confirm a fresh breakout and likely trigger strong upside momentum towards ₹1,100 in the near term. The setup appears technically sound, but for the move to sustain, high breakout volumes are essential to validate institutional participation. Until then, HDFC Bank share price is expected to consolidate within its current range. Overall, the structure remains bullish and well-positioned for an upward move once confirmation arrives,” said Jain.

HDFC Bank Share Price Performance

HDFC Bank share price has shown a decent growth. The banking stock has gained 5% in one month and has risen over 6% in six months. On a year-to-date (YTD) basis, HDFC Bank share price has rallied 14%, while it has gained 33% in two years. HDFC Bank shares have jumped over 66% in the past five years.

At 9:25 AM, HDFC Bank share price was trading 1.45% higher at ₹1,017.05 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.