HDFC Bank, ICICI Bank, RIL, Axis Bank In Focus: 10 Stocks To Watch After Q1 Results
Indian equity markets are witnessing heightened activity today as investors digest the Q1 FY27 earnings of heavyweight companies including HDFC Bank, ICICI Bank, Reliance Industries (RIL), and Axis Bank. These results have set the tone for the banking and energy sectors, making them the key drivers of market sentiment.
HDFC Bank reported a modest rise in net profit at ₹19,060 crore, up 5% year-on-year. However, its operating profit fell sharply by 21% to ₹28,168 crore, reflecting margin pressures. Net interest income grew 7% to ₹33,534 crore, but net interest margins slipped to 3.26%, highlighting profitability concerns. Asset quality remained stable with gross NPA at 1.17% and net NPA at 0.41%, but investors are cautious about the margin trajectory.
ICICI Bank delivered a strong set of numbers, with net profit rising 16% to ₹14,804 crore. Net interest income grew 13% to ₹24,385 crore, supported by healthy loan growth of 19.6% year-on-year. Asset quality improved further, with gross NPA at 1.38% and net NPA at 0.35%. Provisions declined significantly to ₹1,260 crore, boosting profitability. With a return on assets of 2.49%, ICICI Bank continues to outperform peers, making it a stock in sharp focus.
Reliance Industries posted a consolidated revenue of ₹3.09 lakh crore, up 5.2% sequentially, while net profit surged 23.4% year-on-year to ₹20,946 crore. EBITDA stood at ₹47,517 crore, in line with estimates. The company’s telecom arm Jio reported an ARPU of ₹215.6 with a subscriber base of 53.3 crore. Growth was driven by its oil-to-chemicals (O2C) and retail businesses, reaffirming RIL’s diversified strength across sectors.
Axis Bank also reported stable earnings, with profitability aided by lower provisions. While loan growth and asset quality trends were encouraging, margin pressures persisted, similar to HDFC Bank. This has kept investor sentiment mixed, with analysts watching closely for future margin recovery.
Overall, the Nifty Bank index reflected weakness due to margin stress in HDFC and Axis Bank, while ICICI Bank’s strong performance and RIL’s robust earnings cushioned the downside. Analysts believe that while asset quality remains resilient across banks, margin compression could be a key risk in the near term
