Indian banks and retailers showed strong financial growth in the second quarter of 2026, with banks reporting healthy loan increases and companies like Nykaa and DMart posting robust revenue gains.
- HDFC Bank's advances rose 14% year-on-year to ₹31.87 lakh crore.
- Bank of Baroda's domestic loans increased 13.51%, with retail loans up 19%.
- Nykaa expects consolidated net revenue growth in the high twenties percentage.
- DMart's revenue grew 18% year-on-year.
- Vedanta's refined metal and silver production increased significantly.
How did banks perform in loan growth during Q2 2026?
HDFC Bank, India's largest private sector lender, reported its average advances under management at ₹31.87 lakh crore for the September 2026 quarter. This figure is about 14% higher than the ₹27.95 lakh crore recorded in the same quarter the previous year. Other banks such as Bank of Baroda, Canara Bank, Bank of India, and Bandhan Bank also showed double-digit growth in their loan portfolios.
Bank of Baroda's domestic advances rose 13.51% to ₹11.87 lakh crore. Within this, retail advances, including personal loans and credit cards, climbed 19% to ₹3.24 lakh crore. The bank's domestic loan book increased by 16.83% to ₹12.63 lakh crore, while its global loan book grew 19.35% to ₹13.73 lakh crore. The combined portfolio of domestic retail, agriculture, and MSME loans rose 21% to ₹8.12 lakh crore. Overall, the bank's total business jumped 21.07% to ₹18.91 lakh crore from ₹15.62 lakh crore a year earlier.
Deposits also showed strength, with Bank of Baroda's gross domestic deposits rising 23.3% to ₹9 lakh crore. Its CASA (Current Account Savings Account) deposits increased by 4.3% to ₹46,131 crore.
What revenue growth did retail companies report in Q2 2026?
Retail companies demonstrated strong performance during the July-September period. FSN E-Commerce, the operator of Nykaa, expects consolidated net revenue growth in the high twenties percentage range. Nykaa's business grew across both fashion and beauty verticals, supported by an increasing scale in fashion and steady growth in beauty.
Nykaa added 14 new stores during the quarter, bringing the total store count to 338. The company's same-store sales growth was in the early twenties percentage, marking the highest growth in six quarters. The House of Nykaa brand continued to outperform the overall beauty vertical, with strong results across both core and emerging brands.
Avenue Supermarts, which operates DMart, reported an 18% year-on-year increase in revenue, reflecting robust sales growth.
How did the metals sector perform in Q2 2026?
Vedanta, a major metals producer, reported a 7% year-on-year increase in refined metal production, reaching 264 kilotonnes. This growth was driven by additional capacity from debottlenecking projects at Chanderiya and Dariba, as well as a 160 kilotonnes per annum roaster at Debari. The company also reported a 20% rise in saleable silver production, reaching 173 metric tonnes, aligning with its production plan.
What are the key takeaways from the Q2 2026 business update?
- Banks showed strong credit growth, with HDFC Bank and Bank of Baroda leading in loan portfolio expansion.
- Retailers Nykaa and DMart posted significant revenue and sales increases.
- Nykaa expanded its store network and achieved high same-store sales growth.
- Vedanta increased metal and silver production through capacity enhancements.
- Overall, the sectors demonstrated healthy business performance in the second quarter.
