HDFC Bank, India's largest private sector bank by market capitalisation, declared its fourth-quarter results for FY2025-26 on Saturday, April 18, 2026. The numbers came in largely ahead of analyst expectations on the headline profit figure, with a few areas of caution on the income side.
Here is a complete factual breakdown of everything that matters.
Net Profit: Rs 19,221 crore for Q4 FY26 — up 9 percent year-on-year from Rs 17,616 crore in Q4 FY25. On a sequential basis (compared to Q3 FY26's profit of Rs 18,654 crore), this is a 3 percent increase. The number beat the Mirae Asset Sharekhan estimate of Rs 19,067 crore, and came close to Axis Direct's projection of Rs 19,428 crore.
Net Interest Income (NII): Rs 33,082 crore — up 3.2 percent from Rs 32,065 crore in the same quarter last year. This number came in below several analyst estimates. Nirmal Bang had projected NII of Rs 34,058 crore; Axis Direct had expected Rs 33,835 crore. The bank's actual NII growth of 3.2 percent versus expectations of 5 to 6 percent suggests some margin pressure is working through the system.
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Net Interest Margin (NIM): 3.38 percent on total assets; 3.53 percent on interest-earning assets. These are industry-standard healthy margins, though they reflect the tighter environment that private banks have been navigating as deposit costs have risen.
Interest Income: Rs 76,610 crore — down 1.1 percent from Rs 77,460 crore in Q4 FY25. This is the one number that warrants attention. Total interest income falling year-on-year, even marginally, reflects the pressure on yields in a period of competitive deposit mobilisation and lower lending rate environment.
Total Income: Rs 89,809 crore for Q4 FY26, essentially flat versus Rs 89,488 crore in Q4 FY25.
Pre-Provision Operating Profit (PPOP): Expected to have grown approximately 7 percent year-on-year to around Rs 28,373 crore, driven by healthy fee income and controlled operating costs.
Asset Quality
This is where HDFC Bank's quarterly results carry the most reassuring signal.
Gross NPA Ratio: 1.15 percent of gross advances as of March 31, 2026 — down from 1.33 percent a year ago. This is a meaningful improvement of 18 basis points. For a bank of HDFC's size, shaving the GNPA ratio by this margin in one year reflects genuine recoveries and tighter underwriting rather than statistical noise.
Net NPA Ratio: 0.38 percent — down from 0.43 percent a year ago. This puts HDFC among the cleanest books in the Indian banking sector.
To put this in context: the bank's GNPA stood at 1.24 percent in Q4 FY24. The trend over the past two years has been consistently downward. That is what analysts and long-term investors look at — and here, the signal is positive.
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Dividend
The HDFC Bank board recommended a final dividend of Rs 13 per equity share (face value Re 1) for FY26. The record date for determining eligible shareholders has been set as June 19, 2026.
This final dividend is in addition to the special interim dividend of Rs 2.50 per share that was already paid to shareholders on August 11, 2025.
Total dividend for FY26: Rs 15.50 per equity share.
This is higher than FY25's total payout and signals continued confidence in the bank's capital position and future earnings.