Stock Report

HDB Financial Services Hits Record High: Q1 FY27 Net Profit Surges 38.3% to ₹785 Crore

Posted On : 2026-07-15 20:56:27( TIMEZONE : IST )

HDB Financial Services Limited (NSE: HDBFS | BSE: 544429), a leading upper-layer non-banking financial company (NBFC) and subsidiary of HDFC Bank, has delivered its strongest quarterly performance to date. The Board of Directors approved the company's unaudited financial results for the quarter ended June 30, 2026, highlighting record-breaking profitability, healthy loan disbursements, and strengthening asset quality.

Record-Breaking Financial Performance

The lender reached a historic milestone by recording its highest-ever quarterly net profit, backed by double-digit growth across all key income streams.

Profit After Tax (PAT): Surged to ₹785 crore, marking a stellar 38.3% year-on-year (YoY) growth compared to ₹568 crore in Q1 FY25.

Profit Before Tax (PBT): Rose by 44.0% YoY to ₹1,055 crore, up from ₹733 crore in the corresponding quarter of the previous year.

Net Interest Income (NII): Registered a 19.9% YoY increase to ₹2,509 crore, up from ₹2,092 crore.

Net Total Income: Expanded by 16.8% YoY to ₹3,185 crore, compared to ₹2,726 crore.

Pre-Provisioning Operating Profit (PPOP): Touched ₹1,752 crore, climbing 25.0% YoY from ₹1,402 crore.

Credit Metrics and Business Volumes

The company's growth momentum was fueled by robust disbursement volumes and expanding loan books.

Quarterly Disbursements: Reached ₹17,629 crore, representing a healthy 16.2% YoY growth.

Assets Under Management (AUM): Stood at ₹1,22,048 crore, growing 11.3% YoY from ₹1,09,690 crore.

Gross Loan Book: Climbed to ₹1,21,846 crore as of June 30, 2026, compared to ₹1,09,342 crore in the previous year.

The gross loan book maintains a highly stable and balanced distribution across its primary business segments. Secured loans comprise 74% of the total gross loan book. The underlying business verticals are represented as follows:

Enterprise Lending: 38% of the loan mix.

Asset Finance: 37% of the loan mix.

Consumer Finance: 25% of the loan mix (up from 23% in Q1 FY25).

Strengthening Asset Quality and Operating Ratios

HDB Financial Services achieved sequential and annual improvements in asset tracking and core margins during the quarter.

Net Interest Margin (NIM): Expanded significantly to 8.4%, up from 7.7% in Q1 FY25 and 8.2% in Q4 FY26.

Gross Stage 3 Loans: Decreased to 2.34% of total gross loans, down from 2.56% in Q1 FY25 and 2.44% in the previous quarter.

Net Stage 3 Loans: Settled at 1.04%, down from 1.11% YoY.

Provision Coverage Ratio (PCR): Stood at a comfortable 55.73% on Stage 3 assets.

Credit Costs: Settled at 2.3% of total gross loans, down from 2.5% in Q1 FY25. Total loan losses and provisions stood at ₹697 crore, showing a controlled 4.1% increase YoY.

Return on Average Assets (RoA): Improved to an annualized 2.5%, up from 1.9% YoY.

Key Shareholder Metrics: Earnings Per Share (EPS) rose to ₹9.5 for the quarter (from ₹7.1 YoY), while the Book Value Per Share grew to ₹257 (up from ₹225 YoY).

Extensive Omnichannel Footprint

As an RBI-categorized upper-layer NBFC established in 2007, HDB Financial Services serves a massive, diverse customer base of individuals, micro-enterprises, and emerging businesses. The company's comprehensive omnichannel distribution network now spans 1,710 physical branches located across 1,165 cities and towns as of June 30, 2026, facilitating robust nationwide delivery of its specialized lending verticals.

Shares of HDB Financial Services Limited was last trading in BSE at Rs. 751.95 as compared to the previous close of Rs. 743.95. The total number of shares traded during the day was 40896 in over 2608 trades.

The stock hit an intraday high of Rs. 757.60 and intraday low of 744.50. The net turnover during the day was Rs. 30700280.00.