Q1 Results Today: More than 20 companies, including banking heavyweights HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Yes Bank, will announce their Q1 FY27 earnings on July 18, making it one of the busiest days of the ongoing earnings season. The results are expected to provide fresh insight into the health of India’s banking sector and corporate earnings at the start of the financial year.
Investors will focus on key indicators such as profit growth, loan and deposit expansion, asset quality, and net interest margins. Management commentary will also be scrutinised for guidance on credit demand, lending trends and profitability over the coming quarters.
Apart from banks, companies including India Cements, JK Cement and Can Fin Homes are also scheduled to report their June quarter performance.
Ahead of the earnings announcements, benchmark indices rallied sharply on Friday, July 17, supported by gains in index heavyweights. Reliance Industries, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank led the advance, helping offset weakness in the broader market amid rising geopolitical tensions in the Middle East and firm crude oil prices.
The Sensex climbed 965 points, or 1.25%, to settle at 78,151.45, while the Nifty 50 gained 262 points, or 1.09%, to close at 24,334.30.
HDFC Bank Q1 Preview
HDFC Bank is expected to post steady earnings growth for the June quarter, with brokerages forecasting stable margins and healthy asset quality despite seasonal pressure in the agriculture portfolio.
According to Motilal Oswal Financial Services, the country’s largest private sector lender is likely to report a net profit of ₹19,226 crore for the April-June quarter, up 5.9% from ₹18,155 crore in the corresponding period last year. Net interest income (NII) is projected to increase 8.5% year-on-year to ₹34,110 crore from ₹31,438 crore.
The brokerage expects net interest margins (NIMs) to remain largely unchanged on a sequential basis, with the impact of seasonal stress in the agriculture segment likely to be offset by other factors. It also expects cost ratios to remain under control, supported by operating leverage.
On the asset quality front, Motilal Oswal expects HDFC Bank to maintain a stable performance. The gross non-performing asset (GNPA) ratio is estimated to improve to 1.1% from 1.2% in the previous quarter, while the net NPA ratio is expected to remain unchanged at 0.4%.
ICICI Bank Q1 Preview
Brokerages expect ICICI Bank to deliver another strong quarter, backed by healthy business momentum and robust double-digit loan growth.
According to Motilal Oswal Financial Services, the private sector lender’s net profit is expected to rise 3.1% year-on-year to ₹13,164 crore in the June quarter from ₹12,768 crore a year earlier. Net interest income (NII) is estimated to increase 10.5% year-on-year to ₹23,906 crore from ₹21,634.5 crore.
The brokerage expects net interest margin (NIM) to witness a marginal sequential decline due to seasonal factors. However, adjusted NIMs are likely to remain broadly stable quarter-on-quarter, supported by deposit repricing and interest reversals during the June quarter.
On the asset quality front, Motilal Oswal expects ICICI Bank to maintain a stable performance, with gross non-performing assets (GNPA) remaining unchanged at 1.4% and net NPA steady at 0.3% on a sequential basis.
Axis Bank Q1 Preview
Motilal Oswal Financial Services expects Axis Bank’s net interest margin (NIM) to decline by 5 basis points quarter-on-quarter, mainly due to faster growth in the corporate loan book and seasonally higher slippages during the June quarter. Despite the pressure on margins, the brokerage expects net interest income (NII) to grow 10.6% year-on-year. It also forecasts the bank’s net profit to increase 15% year-on-year, although operating profit is likely to decline 1.7% from a year ago.
Meanwhile, Kotak Institutional Equities expects Axis Bank’s net profit to rise 16.8% year-on-year, though it sees a 4.1% sequential decline. The brokerage projects NII to grow 9.2% year-on-year and 2.4% quarter-on-quarter, while NIM is expected to contract by 28 basis points year-on-year and 8 basis points sequentially.
“We expect slippages of nearly ₹4700 crore (nearly 1.5% of loans), mostly led by retail and LLP of nearly 50 bps. Commentary on asset quality outlook is likely to be positive. Loan growth outlook, FCNR deposits, NIM progression, and RoE normalisation to peers may be the key discussion areas,” said Kotak.
Full List Of Companies That Will Share Earnings On July 18
Ashima Ltd.
Bhansali Engineering Polymers Ltd.
East India Drums and Barrels Manufacturing Ltd.
F Mec International Financial Services Ltd.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
