Bernstein on ICICI BK
O-P, TP ₹1800
ICICI Bank delivered another standout quarter, reinforcing its position as fastest-growing large private bank.
Loan and deposit growth accelerated sharply, with loan growth driven by broad-based strength across corporate, business banking and retail segments.
While NIM moderated during quarter, margin compression was broadly in line with peers (ex-one offs) & strong balance-sheet growth continued to support healthy NII growth.
Combined with robust fee income momentum and improving asset-quality trends, this enabled bank to sustain best-in-class operating and earnings growth.
JPM on ICICI BK
OW, TP ₹1800 from ₹1735
Delivered a broad-based beat in 2Q with NII at ₹253.4bn (+18% y/y), coming 2% higher vs JPMe, PPOP at ₹205.8bn (+19% y/y), coming 7% higher vs JPMe, and PAT at ₹148.4bn (+20% y/y), coming 11% higher vs JPMe.
Core NII (ex-interest on IT refund) rose by 6% q/q and 18% y/y supported by industry-leading loan growth of 12.3% q/q (+30% y/y, +2.3% vs JPMe).
Reported core NIM (ex-interest on IT refund) declined by 4bps q/q, driven nainly by impact of FCNR (B).
While full impact of FCNR (B) will flow through in 3Q & likely to weigh on NIMs, see tailwinds for NIM expansion in 4Q and FY28 with 57% of loan book linked to repo – now incorporate 50bps of hikes in forecasts including one in Dec’26.
Nomura on ICICI BK
Buy, TP raised to ₹1740
Delivered strong 2QFY27, led by an NII beat and robust balance sheet growth
Raise FY27F/28F EPS by 3%/7%
NII adjusted for one-offs grew 6% q-q / 18% y-y, 2% above estimate, on loan/deposit growth of 30%/27% y-y.
Core PPOP was in line at INR208bn (+22% y-y / +3% q-q), as lower dividend income following a change in a subsidiary’s dividend policy, an accounting effect rather than an operating one, offset the NII beat
Bank mobilized ₹1.6tn of FCNR(B) deposits (8% of total deposits), 50% of which were funded by its own loans against these deposits; management expects to deploy this liquidity over next two quarters
GS on ICICI BK
Buy, TP ₹2025
2QFY27 ahead of our expectations across the board, with loan growth of 24% YoY (2% above GSe), core revenue growth of 18% YoY (2% above), NIM 5bp above GSe, core PPOP 5% above, and lower provisions.
NIM delivery was particularly notable, declining just 10bp QoQ despite one of the strongest FCNR(B) deposit accretions in the system (8% of deposits).
Importantly, bank preserved liquidity at the bottom of interest-rate cycle, with LDR at 85%, providing meaningful headroom for medium-term earnings growth as liquidity is deployed.
UBS on ICICI BK
Buy, TP ₹1800
Reported an all-round beat on reported numbers supported by stronger loan & deposit growth.
PAT of Rs148bn was up 20% YoY and was ahead of estimates.
Loan growth of 12.3% QoQ/30.0% YoY (7.3% QoQ/24.1% YoY ex-FCNR-linked overseas loans) was also well ahead of expectations and peers, though material acceleration was seen in corporate loans other than continued strength in business banking.
NII/Core PPOP increased 17.7%/21.8% YoY, while fee income grew a healthy 20.1% YoY
NIM declined by 10bps QoQ adjusted for 8bps of tailwind from income tax refund last quarter.
Management expects margins to bottom out in 3Q before recovering in 4Q
Kotak Inst Eqt on ICICI BK
Buy, TP ₹1800
Delivered another strong quarter, reporting 20% yoy earnings growth led by a similar increase in operating profit.
Bank reported industry-leading loan growth of ~30% yoy.
While NIM declined 20 bps qoq to 4.2%), due to impact of FCNR deposits, bank continued to generate healthy CASA growth and low credit costs (0.2%) thanks to lower slippages (1.2%), resulting in a solid RoE print of 17%
Bank continues to assert its leadership over peers by a comfortable margin, with no evidence that competitors are closing gap yet.
Citi on ICICI Bank
Recommendation: Buy, Target: ₹1770
NII Up 4% QoQ; NIM to Trough in 3Q Before Recovery
Asset Quality Pristine; Robust Recoveries Anchor Modest Credit Costs
FCNR Surge Outpaces Market Share Gains, Lifts NII but Dilutes NIM
Clearly Emerging as a Growth Leader; Wholesale & Business Banking Propel Growth
*Bernstein on HDFC BK*
O-P, TP Rs 1150
Weak earnings growth trend for HDFC Bank continued in 2Q27
While balance-sheet growth remained healthy & asset quality stayed resilient, weaker treasury income, & margin pressure weighed on profitability.
As a result, RoA moderated marginally to 1.8% despite continued opex discipline.
*JPM on HDFC BK*
OW, TP Rs 970 from Rs990
Delivered a steady 2Q27 with NII at Rs 346.2bn (+10% y/y) and PAT at Rs 195.1bn (+5% y/y) coming broadly in line vs JPMe.
Reported NIMs declined by 10bps q/q to 330bps and trailed JPMe on FCNR impact.
HDFCB underscored a positive NIM outlook (neutral to positive going forward) driven by positive impact of a 25bps repo rate hike (70% book is floating with a significant portion linked to repo), along with mix shift towards higher yielding retail and MSME, partly offset by full impact of FCNR (B) in 3Q .
A decline in average LCR to 113% (vs 115% in 1Q, 110-120% target range) does reduce balance-sheet flexibility.
Asset quality remains healthy
*GS on HDFC BK*
Buy, TP Rs 861
2QFY27 core PPOP growth improve to 13% YoY from 8% in 1Q and was 2% above GSe, aided by continued cost optimization.
Core revenue growth picked up to 10% YoY vs. 7% YoY last quarter.
Loan growth trends were positive, and bank saw improved traction in business banking, unsecured loans, and autos for instance.
NIMs, however, declined by 8bps QoQ, a larger-than-expected contraction vs GSe.
*Nomura on HDFC BK*
Buy, TP Rs 940
Largely in-line 2QFY27, with core PPOP of INR287bn (+12% y-y / +3% q-q).
NII growth of 3% q-q lagged peers (Axis/ICICI at 5%/6%), reflecting lower FCNR(B) mobilization as a share of deposits (3.3% vs 7%/8% for Axis/ICICI).
Loan and deposit growth were healthy at 16% y-y / 5% q-q and 19% y-y / 5% q-q, respectively, though FCNR(B) inflows contributed ~3pp of q-q deposit growth.
However, LCR moderated to 113% (-2pp q-q) vs largely stable levels of 124%/119% at ICICI/Axis, leaving the bank close to the lower end of its 110-120% operating band.
This could constrain incremental loan growth, making deposit momentum the key swing factor.
*Kotak Inst Eqt on HDFC BK*
Buy, TP Rs 1050
Reported 5% yoy earnings growth in 2QFY27, broadly in line with operating profit growth.
While NII growth continued to improve, NIM contracted by 10 bps qoq, primarily due to the impact of FCNR deposit mobilization.
As bank navigates a series of leadership transitions, it enters a new phase in its evolution.
A supportive operating environment and attractive valuations reinforce our constructive view, although execution remains the key monitorable.
*Citi on HDFC Bank*
Recommendation: Buy, Target: ₹880 (Earlier Target: ₹970)
NIMs Compress, Growth Trail System, Fees Shield PPoP
Constrained Buffer to Cap Relative Growth Trajectory
Asset Quality Resilient; Seasonal Agri Pressures Wane; Credit Costs Maintained at 46bps
Execution Key Amid Leadership Transition
*Jefferies on HDFC Bank*
Recommendation: Buy, Target: ₹880 Core
NIMs hold-up better; reallocation of assets to aid NIMs
Asset quality strong
Improvement in retail deposit growth and re-risking loans can aid profitability
New CEO & exit of DMD may lead to more changes in mgt-team
*Kotak Inst Eqt on Axis BK*
Buy, TP Rs 1600
Delivered a strong 2QFY27, reporting 40% yoy earnings growth, while operating profit increased 6% yoy.
Loan growth remained robust at 23% yoy, although NIM contracted by 10 bps qoq due to the impact of recent FCNR deposit mobilization.
Slippages continue to trend lower, leading to lower credit costs.
While operating environment remains supportive of earnings growth, valuation upside is likely to be constrained as stock now trades close to HDFC Bank’s valuation multiple.
*GS on Axis BK*
Buy, TP Rs 1600
QFY27 earnings were largely in-line with expectations
Thesis of cyclical inflection in core PPoP growth remains on track
This is being led by improving visibility on NIMs, with retail disbursements remaining strong, the CASA growth run-rate has picked up and the rate cycle is turning
Expect loan growth will remain strong, although moderating from current elevated levels
Key challenge is around fee income, where growth remains muted, but we expect continued cost optimization to partly offset that.
Asset quality trends remain strong, and risk is low amid muted trailing growth in unsecured loans. We expect core PPoP growth to inflect from 10% YoY in 2QFY27 to ~15% YoY in H2-FY27 and 20% CAGR during F27-F29E.
*Bernstein on Axis BK*
O-P, TP Rs 1600
Delivered a mixed 2Q27 performance, with lower credit costs driving earnings growth despite weaker core trends
Loan growth remained robust and corporate-led, although strong borrowings growth pushed LDR sharply higher to 95%
Stable margins (excluding FCNR impact), a marginal decline in NOI (-1% YoY, -3% QoQ) and a sharp increase in opex weighed on PPoP growth, even as a 52% YoY (-24% QoQ) decline in credit costs supported healthy EPS growth (+37% YoY, -2% QoQ)
*JPM on Axis BK*
OW, TP Rs 1620 from Rs1590
Reported a better-than-expected 2Q with NII rising by 11.8% y/y to Rs 153.7bn (+3% vs JPMe), PAT rising by 38% y/y to Rs 70bn (+3% vs JPMe).
While PPOP at Rs 110.8bn came 5% below JPMe on a miss in non-interest income, which declined by 1% y/y to Rs 65.3bn (-11% vs JPMe) & was more than offset by lower than expected credit costs, which declined by 20bps q/q to 51bps (vs JPMe at 80bps) partly helped by a Rs 9.71bn of recovery from written-off assets.
AQ trends were healthy
Valuations are attractive, as it trades at FY28E P/BV of 1.4x which is at a 31% discount vs ICICI Bank & FY28E PER of 9.6x, underpinning positive view.
*CITI on Axis BK*
Buy, TP Rs 1620
Headline headwinds—elevated opex (+11% QoQ; 2.18% opex-to-assets) from one-off Labour Code provisioning and FCNR charges, alongside muted mid-single-digit fee growth—masked robust core operational resilience.
While headline NIM contracted 10bps QoQ to 3.36% due to optical FCNR(B) distortions, core margins held firm at 3.47%, further supported by structural tailwinds including a 60% repo-linked book, bulk deposit roll-offs, and liquidity redeployment.
Momentum sustained with loan growth at 19% YoY / 5% QoQ (ex-FCNR), led by Corporate/SME alongside improving Retail disbursements.
Slippages eased to 1.5% (vs. 1.8% QoQ); credit costs moderated sharply to 50bps (vs. 70bps QoQ)
Upgrade loan growth trajectories to 21%/19%/18% for FY27E/28E/29E and modestly trim FY27E credit costs.
*UBS on Axis BK*
Buy, TP Rs 1670
ICICI reported an all-round beat on reported numbers supported by stronger loan & deposit growth.
PAT of Rs148bn was up 20% YoY and was ahead of estimates.
Loan growth of 12.3% QoQ/30.0% YoY (7.3% QoQ/24.1% YoY ex-FCNR-linked overseas loans) was also well ahead of expectations and peers, though material acceleration was
seen in corporate loans other than continued strength in business banking.
NII/Core PPOP increased 17.7%/21.8% YoY, while fee income grew a healthy 20.1% YoY
NIM declined by 10bps QoQ adjusted for 8bps of tailwind from income tax refund last quarter.
Management expects margins to bottom out in 3Q before recovering in 4Q
*Jefferies on Axis Bank*
Recommendation: Buy, Target: ₹1700
Q2: Core Ahead; Rebalancing of Loan Mix to Aid ROE Rise
Q2 was ahead of estimates aided by better topline and lower provisions
QoQ stable core NIMs was positive, but drag from FCNR-B was a tad more than estimate
Asset quality continues to improve
Better NIMs & lower credit cost can lift ROE next year
*CLSA on PNB*
O-P, TP Rs 140
2QFY27 PAT beat estimate by 20%.
This was driven by a beat on NII and one-off recoveries, partly offset by lower other income.
Loan growth accelerated to 16% YoY from low-double digits a few quarters back.
Deposit growth remains stable at 10%% YoY.
Reported NIM improved 8bp sequentially driven by loan yields and deposit cost.
Management guided that NIM could further improve. Asset quality was stable, with a gross slippage ratio of 0.8%
*CITI On PNB BK*
Sell, TP raised to Rs 110
PNB’s NIM rose 8bps QoQ to 2.58% (domestic NIM at 2.74%), propelling NII growth of 10.8% YoY/7.4% QoQ — surpassing CitiE.
Runoff of wholesale deposits via FCNR inflows trimmed CoD by 5bps, while continued paring of retail IBPC and low-yielding corporate exposure lifted yields by 8bps.
Release in standard asset provisioning offset NPA and floating-provision buffers, pushing credit cost to near zero.
RoA held firm above 1%.
Global advances climbed 14.7% YoY/5.3% QoQ — outpacing FY27 guided 12–13% band — aided by FCNR-funded overseas exposure (1.5% of the book).
Management reaffirmed guidance of 12–13% loan growth, NIMs of 2.6–2.7%, sub-40bps credit costs, RoA above 1%
*HSBC on Ujjivan Small Fin*
Buy, TP Rs 90
UJJIVANS beat PAT estimate by 14% in 2QFY27; it further indicated that it expects to surpass its FY27 ROA guidance
Increase FY27-29e PAT estimates 9-17% to reflect higher AUM growth, efficiency gains, and preferential issue
Offers strong re-rating potential
Appointment of new CEO is expected to take 3-4 months to complete, starting from 1 Sept 2026
*HSBC on L&T Fin*
Buy, TP cut to Rs 310
Sound 2QFY27 results with most metrics broadly in line with estimates; softer disbursements, asset quality were concerns
However, management commentary on both was reassuring; upgrade EPS by 0.8-4.6% for FY27-29e on better NIM outlook
TP cut to reflect macro-economic concerns in valuation multiples
*HSBC on Bajaj Hsg*
Reduce, TP Rs 78
In 2QFY27, 3% beat in profit was driven primarily by better-than-estimated NIM
Upgrade FY27-29e EPS estimates by 0.6-4.7% to reflect strong AUM growth and better-than-estimated NIM
Valuing at 2.2x FY28e BVPS; retain Reduce rating given expensive valuations, sustained pressures
*CLSA on DLF*
O-P, TP Rs 810
2QFY27 presales of Rs38bn supported by launch & sell-out of Aureva (c.50% of presales), its senior living project.
OCF improved owing to growth in collections versus a decline in Opex.
DLF has a slew of upcoming launches in 2HFY27 which help support its presales guidance of Rs200bn.
It remains focused on growth in cashflows and ramping up its annuity portfolio (11-12msf completions by FY30).
It expects FY28 to be an inflection point in terms of revenue recognition with its major projects completing.
*Jefferies on DLF*
Buy, TP Rs 830 from Rs825
New launch revival after 4 qtrs, & continued luxury property demand, should help DLF meet its pre-sales guidance for FY27E, despite less than a qtr met in 1H.
Lease business remains steady with strong 95%+ occupancies.
FY27 P&L performance should stay patchy though Sep’qtr was a beat on other income.
Cash generation remains strong with Rs61/sh net cash on devco.
*JPM on DLF*
OW, TP Rs 800
2Q pre-sales came back to Rs38bn (+478% q/q, -12% y/y) after a weak 1Q
Quarter was driven by the sold-out launch of Aureva, a luxury retirement-housing project (~Rs19bn), plus continued super-luxury sales at Dahlias/Camellias (~Rs19bn).
Management said Dahlias realisations are now above Rs100k psf, with prices up 10% in quarter
Cash engine held up well.
Total collections rose 16% q/q and 4% y/y to Rs27.8bn, & net OCF (after interest and tax) rose 37% y/y to Rs18.6bn.
Net FCF before dividends was Rs14.4bn (+27% y/y), even with higher land spend of Rs3.5bn.
After paying a Rs19.8bn dividend, DevCo net cash was broadly stable at Rs151bn (vs. Rs152bn q/q).
*Nomura on DLF*
Buy, TP Rs 740
2QFY27 pre-sales at Rs 38bn (vs estimate of Rs 25bn)
Co on track to meet FY27F presales target of Rs200bn; continued robust cash generation
2QFY27 revenue/EBITDA were weaker than consensus estimates; expect a strong revenue recognition cycle from 2QFY28F
Buy based on DLF’s:
(1) robust FCF generation of INR70-80bn annually with a net cash position that allows it to materially increase shareholder returns and focus on new business development (BD);
(2) potential annuity income, which expect to expand at a 12-13% CAGR as new assets come online;
(3) execution capability, which has translated into strong performance for luxury/super luxury projects
*Nomura on Oberoi Realty*
Buy, TP Rs 2090
2QFY27 earnings in line with estimates
Pre-sales beat est.
Collections: At INR18.9bn (+40% y-y)
Annuity: 2QFY27 rental revenue increased ~17%% y-y to INR3.38bn, driven by ramp up of rentals from Sky City mall (+42% y-y).
Hospitality: Operating revenue was up 2% y-y to INR0.45bn, while EBITDA declined 6%% y-y to INR0.17bn.
EBITDA margin fell by 300bp.
*HSBC on Oberoi Realty*
Buy TP Rs 2310
Strong bookings on expected lines; residential EBITDA margin also expands
Annuity income steady; SkyCity still to reach 90% occupancy levels
*HSBC on Crompton Cons*
Buy, TP Rs 330
2QFY27 EBITDA margin expanded by 70bp y-o-y to 9%; management said 80% of cost inflation is passed through
Double-digit growth across segments; 70%+ exports growth
Stock trades at a consensus 1-year forward PE of 17x, near its all-time low of 16x & vs its 32x average
1H results have been positive despite commodity headwinds
If co can execute on new businesses (solar, wires, etc.) properly, think stock can rerate.
*Nomura on Crompton Cons*
Buy, TP Rs 292
Price hikes, new segments to support growth
2Q EBITDA ahead of estimates; margin headwinds from rising commodity costs
Valuation remains attractive at 17x FY29F EPS is attractive given a 17% EPS CAGR over FY26-29F.
*CITI on Crompton Cons*
Buy, TP Rs 400
Reported better-than-expected growth and profitability across segments:
(a) ECD: revenue 19% vs Citi est 15%; margins +101bps YoY.
(b) Lighting: revenue 14% vs Citi est 12%; margins -261bps YoY.
(c) Butterfly: revenue 16% vs Citi est 8%; margins -30bps YoY.
Management highlighted: (a) supply-chain disruption which impacted 1Q is behind now; (b) 11-15% price hike in 1H (ex-Lighting); (c) positive volume growth across all categories.
Overall revenue/EBITDA/Adj PAT grew 18%/24%/30% (4%/9%/15% above Citi est).
Near-term growth outlook is strong, led by low-base and ramp-up in relatively new categories (solar rooftop, solar pumps).
However, execution remains key monitorable, amid volatile RM and cost inflation environment
*Jefferies on Crompton Cons*
Buy, TP Rs 305
Sep26-Q PAT was in line with JEFe.
Double-digit sales growth was driven by general trade in South, West.
Avg price hike in ECD at 11-15% in 2-Q
But input cost pressure continues, impacting YoY margins in Lighting, Butterfly.
Gross margin is paring QoQ for past 3-Q
Co mainly caters to B2C products; inflation pressures warrant caution.
*CLSA on Auto Sector*
Auto pulse check: All eyes on festive
On street demand momentum remains stable
Auto retail registrations in H1 Oct-26 remained broadly stable MoM; however, YoY registrations declined sharply
High base from last year and inauspicious buying period impacted
Channel checks and interactions with dealers and OEMs suggest they continue to expect mid- to high-single-digit volume growth
Dealers across brands highlighted that inquiry levels were healthy and higher YoY during Dussehra
Inventory levels are largely at normal levels, while discounting has also remained broadly stable
M&M remains top pick followed by Bajaj Auto and Ather Energy
*Morgan Stanley on India Strategy*
India’s Path to Higher ROEs
India’s ROE rose in 2025, moving closer to its 2023 peak
Although the gap vs global peers narrowed for a second consecutive year
Believe ROE is poised to reach new highs over the next 3-4 years
Factors – stronger investment cycle, improving growth momentum and rising corporate profitability
Asset turnover remains healthy
*Nomura on Indigo*
Recommendation: Buy, Target: ₹6000
Government to notify airfare rules within two weeks
Think visibility remains low on the new rules
Nevertheless, base case is higher oversight/transparency on the margin on airfares
Expect stronger disclosures related to fares/ancillary components rather than direct government intervention
