-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
FY 26 (Mar.) net profit, which rose 7.4% to INR760.3B led by loan growth, stronger other income, and cost efficiency, met our expectations. Loan growth picked up (+12%) and deposit base strengthened (+14.3%). While the loan-to-deposit ratio of 98.4% was still high and the deposit increase was led by term deposits, it reflects HDFC's steady progress at strengthening its deposit base to improve its liquidity position and reduce reliance on wholesale funding. We think HDFC's loan momentum will sustain, led by corporates and MSMEs. We see some pressure on NIM from increased mix of term deposits and the impact of a 25-bp cut in the benchmark repo rate in December 2025, but a structural shift in HDFC's funding base will keep its NIM in a stabilized range in FY 27. We expect better cost efficiency (on the benefits of technology/digital transformation) and stable asset quality (which will keep credit costs benign) will support profitability, with HDFC expecting ROA to sustain at FY 26's level of about 1.9% in FY 27.