HDFC Bank shares fall 5% after Q1 results. Should you buy, sell or hold the stock?

HDFC Bank shares fell 5% after its Q1 FY27 results, even as net profit rose to Rs 19,060 crore from Rs 18,155 crore YoY and net interest income grew 7% to Rs 33,534 crore. The key disappointment was a 12 basis point QoQ contraction in net interest margin to 3.26%, with retail loan growth remaining subdued and loan growth driven by wholesale segments. Gross NPA ratio improved to 1.17% from 1.4% YoY, while provisions fell sharply by 79% YoY to Rs 3,060 crore; Motilal Oswal reiterated Buy with a Rs 2,050 target and JM Financial maintained Add with a Rs 900 target.