Q1 FY26 Earnings Review: Reliance Rallies 78%, ICICI +15%, HDFC +12%
By CapitalKeeper | News| Indian Equities | Market Moves That Matter
Explore Q1 FY26 earnings: Reliance posts record ₹26,994 cr PAT, ICICI Bank grows profit 15.5% to ₹12,768 cr, HDFC Bank sees 12.2% growth and bonus share. Performance outlook and market implications.
🏢 1. Reliance Industries (RIL) – Powerhouse Performance
Reliance posted a staggering 78% YoY jump in consolidated profit to ₹26,994 crore, up from ₹15,138 crore in Q1 last year.
Key takeaways:
- Record PAT & EBITDA: Highest-ever quarterly profit, driven by integrated growth across oil-to-chemicals, retail, telecom and a one-time Asian Paints stake sale gain.
- Jio’s strength: Telecom arm crossed 200 million 5G subscribers, boosting service revenue.
- Ambani’s outlook: Mukesh Ambani reiterated ambition to maintain a 4–5 year doubling trajectory.
Why it matters: Reliance’s diversified model ensures stability and scalability, key to market confidence. The Asian Paints stake profit—non-recurring—adds one-off sparkle, but underlying business momentum is firmly intact.
🏦 2. ICICI Bank – Steady Financial Momentum
ICICI Bank delivered another solid quarter:
- Standalone PAT: ₹12,768 crore, up 15.5% YoY, beating expectations.
- Total consolidated profit: ₹13,558 crore, a 15.9% YoY rise.
- NII growth: Up ~11%, driven by strong business banking credit (domestic loan book +12% YoY; business banking +30% YoY).
- Asset quality improvement: GNPA at 1.67%, down from 2.15%, and robust CET1 ratio at 16.3%.
Outlook: A consistent performer with deposit and loan growth, stable asset quality, and strong capital ratios. Watch margins amid rate cuts—though pipeline may keep growth intact.
🏦 3. HDFC Bank – Strong Profit, Caution Ahead
HDFC Bank posted a robust quarter:
- Standalone net profit: Grew 12.2% YoY to ₹18,155 crore, surpassing analyst expectations.
- NII: Rose 5.4% to ₹31,440 crore; core NIM steadied at 3.35% .
- Fee & treasury income: Other income more than doubled to ₹21,729 crore.
- Provisions: Shot up five-fold to ₹14,400 crore for counter-cyclical buffer—although underlying NPA not rising significantly.
Shareholder rewards:
- Announced 1:1 bonus share and a special ₹5 per share dividend—a first ever .
Note: Consolidated profit dipped due to one-off HDB stake sale gain recognition; standalone remains strong.
📊 At-a-Glance Comparison
| Company | PAT (₹ cr) | YoY Change | Key Highlights |
|---|---|---|---|
| Reliance | 26,994 | +78% | Record PAT, one-off gain, Jio & retail drive |
| ICICI Bank | 12,768 (standalone); 13,558 (consolidated) | +15.5% / +15.9% | Loan/deposit growth, asset quality gains |
| HDFC Bank | 18,155 | +12.2% | NII up, buffer provisions, shareholder returns |
🧭 Market Implications & Outlook
- Reliance: Extraordinary quarter sets a strong tone, although watch for similar one-off gains next quarters. Core businesses remain robust.
- Banks: Both private lenders show healthy credit demand and improved asset quality, though margin pressure from RBI cuts looms.
- Investor sentiment: HDFC Bank’s bonus and dividend signal confidence. The buffer provisioning, while prudent, cushions future shocks.
- Macro watch: Monitor interest rate outlook, asset quality trends, and capex or subscriber growth for deeper cues.
✅ Final Takeaway
Big three Q1 performance reviewed:
- Reliance impresses with record profits and diversified strengths.
- ICICI showcases steady operational growth and strong fundamentals.
- HDFC delivers solid earnings, with shareholder-friendly actions and preemptive provisioning.
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