HDB Financial Services Limited (HDBFS)
₹512.60 -4.92% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, HDB Financial's net interest income was ₹3,185 Cr (+52.3% year on year, +32.8% on the previous quarter), and net profit ₹785 Cr (+38.3% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹3,185 | +52.3% | +32.8% |
| Operating profit | ₹1,055 | -24.8% | -37.8% |
| Net profit | ₹785 | +38.3% | +4.6% |
| EPS (₹) | 9.46 | +32.7% | +4.6% |
HDBFS delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 60.5% of the HDBFS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 62.43%. That is close to its usual level. It traded 8.3 times its average daily volume.
Delivery in the last 5 sessions: 52.5% · 53.5% · 56.8% · 43.4% · 60.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
HDB Financial Services declared an interim dividend of ₹2.00 per equity share (20% on face value) for FY 2026-27. The company set Friday, October 23, 2026, as the record date for determining eligible shareholders. Alongside this, the Board approved the appointment of Mr. Vinod Koyande as Company Secretary and Compliance Officer effective October 31, 2026, succeeding Ms. Dipti Khandelwal. The company also confirmed zero deviation in the utilisation of ₹2,500 crore raised via its IPO fresh issue.
- Interim dividend declared at ₹2.00 per equity share (20% of face value) for FY 2026-27
- Record date fixed as October 23, 2026, for interim dividend payout
- Appointment of Mr. Vinod Koyande as Company Secretary & Compliance Officer effective October 31, 2026
- Reported zero deviation in the utilisation of ₹2,500 crore IPO fresh issue proceeds as of September 30, 2026
HDB Financial Services reported a 34.2% YoY increase in Profit After Tax to ₹780 crore for Q2FY27 (quarter ended September 30, 2026), up from ₹581 crore in Q2FY26. Net Interest Income grew 15.6% YoY to ₹2,534 crore, while quarterly disbursements rose 18.7% YoY to ₹18,522 crore. Asset quality improved YoY with Gross Stage 3 loans declining to 2.43% from 2.81% in the prior year period. Additionally, the Board declared an interim dividend of ₹2 per share with a record date of October 23, 2026.
- Q2FY27 PAT rose 34.2% YoY to ₹780 crore versus ₹581 crore in Q2FY26
- Net interest income increased 15.6% YoY to ₹2,534 crore; NIM stood at 8.2%
- Total AUM reached ₹1,24,638 crore, up 11.6% YoY from ₹1,11,721 crore
- Gross Stage 3 improved to 2.43% compared to 2.81% in Q2FY26
- Interim dividend of ₹2 per equity share declared with record date October 23, 2026
HDB Financial Services reported a 34.3% YoY increase in Q2 net profit to ₹780 crore compared to ₹581 crore in Q2 FY26. Net Interest Income grew 15.6% YoY to ₹2,534 crore, with Net Interest Margins expanding to 8.23% from 7.95% YoY. The gross loan book reached ₹1,24,469 crore, up 11.7% YoY, while asset quality improved with Gross NPA moderating to 2.43% from 2.81% YoY. Additionally, the company declared an interim dividend of ₹2 per equity share with a record date of October 23, 2026.
- Q2 PAT stood at ₹780 crore, up 34.3% YoY from ₹581 crore
- Gross loan book grew 11.7% YoY to ₹1,24,469 crore, with disbursements up 18.7% YoY to ₹18,522 crore
- Gross NPA improved to 2.43% compared to 2.81% in Q2 FY26, with PCR at 55.00%
- Declared an interim dividend of ₹2 per share with record date on October 23, 2026
- Capital Adequacy Ratio (CRAR) remained strong at 21.37%
HDB Financial Services declared an interim dividend of ₹2.00 per equity share (20% on face value) for FY 2026-27. The company set Friday, October 23, 2026, as the record date for determining eligible shareholders. Alongside this, the Board approved the appointment of Mr. Vinod Koyande as Company Secretary and Compliance Officer effective October 31, 2026, succeeding Ms. Dipti Khandelwal. The company also confirmed zero deviation in the utilisation of ₹2,500 crore raised via its IPO fresh issue.
- Interim dividend declared at ₹2.00 per equity share (20% of face value) for FY 2026-27
- Record date fixed as October 23, 2026, for interim dividend payout
- Appointment of Mr. Vinod Koyande as Company Secretary & Compliance Officer effective October 31, 2026
- Reported zero deviation in the utilisation of ₹2,500 crore IPO fresh issue proceeds as of September 30, 2026
HDB Financial Services declared an interim dividend of ₹2.00 per equity share (20% on face value) for FY 2026-27. The company set Friday, October 23, 2026, as the record date for determining eligible shareholders. Alongside this, the Board approved the appointment of Mr. Vinod Koyande as Company Secretary and Compliance Officer effective October 31, 2026, succeeding Ms. Dipti Khandelwal. The company also confirmed zero deviation in the utilisation of ₹2,500 crore raised via its IPO fresh issue.
- Interim dividend declared at ₹2.00 per equity share (20% of face value) for FY 2026-27
- Record date fixed as October 23, 2026, for interim dividend payout
- Appointment of Mr. Vinod Koyande as Company Secretary & Compliance Officer effective October 31, 2026
- Reported zero deviation in the utilisation of ₹2,500 crore IPO fresh issue proceeds as of September 30, 2026
HDB Financial Services declared an interim dividend of ₹2.00 per equity share (20% on face value) for FY 2026-27. The company set Friday, October 23, 2026, as the record date for determining eligible shareholders. Alongside this, the Board approved the appointment of Mr. Vinod Koyande as Company Secretary and Compliance Officer effective October 31, 2026, succeeding Ms. Dipti Khandelwal. The company also confirmed zero deviation in the utilisation of ₹2,500 crore raised via its IPO fresh issue.
- Interim dividend declared at ₹2.00 per equity share (20% of face value) for FY 2026-27
- Record date fixed as October 23, 2026, for interim dividend payout
- Appointment of Mr. Vinod Koyande as Company Secretary & Compliance Officer effective October 31, 2026
- Reported zero deviation in the utilisation of ₹2,500 crore IPO fresh issue proceeds as of September 30, 2026
HDB Financial Services has scheduled its earnings conference call on October 14, 2026, at 6:30 p.m. IST to discuss financial results for the quarter and half-year ending September 30, 2026. This follows an earlier intimation on September 25, 2026, regarding the announcement of the unaudited financial results. Senior management will participate in the group call to discuss operational and financial performance with analysts and investors. An audio replay of the call will later be made available on the company's website.
- Earnings call scheduled for October 14, 2026, at 6:30 p.m. IST
- Call covers unaudited results for the quarter and half year ending September 30, 2026
- Follows previous results intimation dated September 25, 2026
- Pre-registration link and dial-ins provided; audio replay to be uploaded on website
HDB Financial Services has allotted 20,000 Secured Redeemable Non-Convertible Debentures (NCDs) with a face value of Rs 10,00,000 each on a private placement basis. The total issue aggregates to Rs 20,18,17,01,644 (approximately Rs 2,018.17 crore), including premium and accrued interest. The debentures carry an annual coupon of 8.0500% (XIRR of 7.9599%) for a tenure of 1,064 days, maturing on August 8, 2029. The proceeds support funding for the NBFC's ongoing lending operations across its retail and asset finance book.
- Allotment of 20,000 NCDs aggregating to Rs 20,18,17,01,644
- Coupon fixed at 8.0500% per annum (XIRR 7.9599%)
- Instrument tenure is 1,064 days, with final maturity on August 08, 2029
- Asset cover of 1.1x maintained via hypothecation over receivables
HDB Financial Services Limited has allotted 1,21,016 equity shares of face value Rs. 10 each to employees pursuant to the exercise of options under its Employee Stock Option Schemes on August 24, 2026. Following this allotment, the company's paid-up equity share capital increased from Rs. 8,30,64,39,190 (83,06,43,919 shares) to Rs. 8,30,76,49,350 (83,07,64,935 shares). The newly allotted shares represent a negligible dilution of approximately 0.015% of the total paid-up equity capital.
- Allotment of 1,21,016 equity shares of face value Rs. 10 each under ESOP on August 24, 2026
- Paid-up share capital increased from Rs. 8,30,64,39,190 to Rs. 8,30,76,49,350
- Total number of issued equity shares expanded from 83,06,43,919 to 83,07,64,935
- Dilution impact is minor at ~0.015% of total outstanding equity
HDB Financial Services Limited has disclosed its schedule of upcoming analyst and institutional investor conferences running from August 26, 2026 to September 16, 2026. The engagements include events hosted by Morgan Stanley, Elara Capital, UBS, and Jefferies via both virtual and in-person modes in Mumbai and Gurugram. These interactions will be conducted in one-on-one and group formats. No unpublished price sensitive information is typically shared in such scheduled investor interactions.
- Virtual group meeting scheduled at the Morgan Stanley Virtual India Financials Seminar on August 26, 2026
- In-person one-on-one/group meetings at Elara India Dialogue 2026 in Mumbai on September 01, 2026
- Participation in the UBS India Summit 2026 in Mumbai on September 10, 2026
- Two meetings organized with Jefferies in Gurugram on September 14, 2026 and September 16, 2026 (5th India Forum)
HDB Financial Services has scheduled an in-person group meeting with institutional investors on August 21, 2026, in Varanasi. The meeting is organized by ICICI Securities and follows the company's recent performance where it crossed the ₹1.11 Lakh Cr AUM mark in Q2 FY26. This is a standard regulatory disclosure under SEBI LODR Regulations. Investors should note that such meetings are routine for large NBFCs to engage with the analyst community.
- Group meeting scheduled for August 21, 2026, in Varanasi
- Event organized by ICICI Securities for institutional investors
- Company manages a loan book exceeding ₹1.11 Lakh Cr as of Q2 FY26
- Customer franchise has grown to 21 million as of recent filings
- Branch network currently spans 1,749 locations across 1,157 cities
HDB Financial Services (HDBFS) has allotted 54,450 Secured Redeemable Non-Convertible Debentures (NCDs) on a private placement basis to raise Rs 544.50 crore. The instruments carry a fixed coupon of 8.2301% per annum and have a tenure of 1,064 days (approx. 2.9 years). This fundraise is relatively small, representing approximately 0.49% of the company's total loan book of Rs 1.11 lakh crore as of Q2 FY26. The NCDs are secured by a 1x asset cover on the company's receivables and will be listed on the BSE Wholesale Debt Market.
- Allotment of 54,450 NCDs with a face value of Rs 1,00,000 each, totaling Rs 544.50 crore.
- Fixed coupon rate of 8.2301% per annum with annual interest payments starting July 2027.
- Instrument tenure of 1,064 days with a final maturity date of July 5, 2029.
- Secured by a first and exclusive charge on present and future receivables with a 1x asset cover.
- Fundraise represents ~0.49% of the company's current loan book of Rs 1.11 lakh crore.
HDB Financial Services has announced its participation in three major institutional investor conferences in Mumbai during August 2026. The company will meet with investors at the Emkay Confluence (Aug 12), Equirus Annual India Conference (Aug 13), and Motilal Oswal Global Investor Conference (Aug 18). These meetings will be conducted in-person through one-on-one and group formats. As a major NBFC with an AUM of ₹1.11 Lakh Cr, these interactions are part of standard investor engagement protocols.
- 3 institutional investor conferences scheduled in Mumbai during August 2026
- Meetings scheduled for August 12, 13, and 18, 2026
- Company manages a loan book exceeding ₹1.11 Lakh Cr as of Q2 FY26
- Customer base currently stands at 21 million across 1,157 cities and towns
- Lending portfolio is diversified with 73% secured loans as of the latest reporting
HDB Financial Services has allotted 2,67,243 equity shares to employees following the exercise of stock options on July 28, 2026. This allotment has increased the company's paid-up share capital from Rs. 830.38 crore to Rs. 830.64 crore. The total number of equity shares outstanding now stands at 83,06,43,919. This is a standard administrative procedure with a negligible dilution of approximately 0.03%.
- Allotment of 2,67,243 equity shares to employees under ESOP schemes on July 28, 2026
- Paid-up share capital increased by Rs. 26,72,430
- Total equity shares outstanding increased to 83,06,43,919 from 83,03,76,676
- Face value of the allotted shares is Rs. 10 per share
HDB Financial Services (HDBFS) has approved the appointment of Mr. Jimmy Tata as a Non-Executive Nominee Director representing its parent company, HDFC Bank. The appointment is for a term ending July 31, 2028, and is currently subject to mandatory approval from the Reserve Bank of India (RBI). This move reinforces the strategic oversight by HDFC Bank, which holds a 74.2% stake in the NBFC. HDBFS continues to scale, with a loan book exceeding ₹1.11 Lakh Cr as of Q2 FY26.
- Appointment of Mr. Jimmy Tata as Nominee Director for a term ending July 31, 2028
- HDFC Bank maintains a dominant 74.2% promoter shareholding in HDBFS
- The company manages a significant loan book of over ₹1.11 Lakh Cr as of Q2 FY26
- Appointment is contingent upon prior approval from the RBI and subsequent shareholder consent
Financial Performance
Revenue Growth by Segment
Total Gross Loans grew 13.0% YoY to INR 1,11,409 Cr in Q2 FY26. The Lending segment generated Net Interest Income of INR 4,284 Cr in H1 FY26, while the BPO segment contributed Net Income of INR 624 Cr. Interest income grew 15.3% YoY to INR 7,718 Cr for H1 FY26.
Geographic Revenue Split
The company operates a vast network of 1,749 branches across 1,157 cities/towns in India as of September 2025, providing a diversified pan-India presence to mitigate regional economic downturns.
Profitability Margins
Net Interest Margin (NIM) stood at 7.9% in Q2 FY26. Return on Assets (RoA) was 1.93% (adjusted 2.02%) for Q2 FY26, down from 3.0% in FY24. Return on Equity (RoE) was 12.23% for the same quarter.
EBITDA Margin
Pre-Provisioning Operating Profit (PPOP) for the lending business was INR 2,890 Cr in H1 FY26. Profit After Tax (PAT) for Q2 FY26 was INR 581 Cr, reflecting a decline from FY24 levels due to higher credit costs of INR 748 Cr in Q2 FY26.
Capital Expenditure
Not disclosed in available documents, though the company expanded its branch network from 1,771 branches in March 2025 to 1,749 reported in the Q2 FY26 summary (noting a slight consolidation or re-classification).
Credit Rating & Borrowing
Maintains a 'CRISIL AAA/Stable/A1+' rating. Borrowing costs are optimized through a diversified mix: Bank loans (40.1%), NCDs (37.5%), and ECBs (11.2%). The Cost of Funds (COF) was 6.1% in September 2025, down from 6.6% in September 2024.
Operational Drivers
Raw Materials
As a financial services firm, the primary 'raw material' is capital. Borrowings of INR 90,541 Cr represent the core input, with Bank Loans (40.1%) and NCDs (37.5%) being the largest components.
Import Sources
External Commercial Borrowings (ECB) account for 11.2% of the liability mix, indicating sourcing of capital from international markets, while the remainder is sourced domestically within India.
Key Suppliers
Key capital providers include HDFC Bank (74.2% owner), various domestic Mutual Funds (Nippon, Kotak, SBI, Mirae, Franklin Templeton), and foreign institutional investors (Baillie Gifford, Morgan Stanley, Blackrock).
Capacity Expansion
Current capacity includes 1,749 branches and 21.0 million customers. The company has scaled from crossing the INR 1 Trillion AUM mark in 2024 to INR 1.11 Trillion in Q2 FY26.
Raw Material Costs
Finance costs for H1 FY26 were INR 3,434 Cr, representing 44.5% of interest income. The company utilizes a prudent ALM framework to maintain a positive cumulative mismatch across all time-buckets.
Manufacturing Efficiency
Lending business efficiency is driven by 61,332 employees. The BPO segment achieved a PBT of INR 43 Cr on a net income of INR 624 Cr in H1 FY26.
Logistics & Distribution
Distribution is handled through 1,749 physical branches and digital product loan channels introduced in 2019 to reach 'Aspirational India'.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
Growth is driven by expanding the customer franchise (up 19.6% YoY to 21 million) and diversifying the loan mix into Consumer Finance (38.4% of book) and Asset Finance (38.0%). The company leverages its HDFC Bank parentage for scale and low-cost funding.
Products & Services
Commercial Vehicle Loans, Gold Loans, Auto Loans, Commercial Equipment Loans, Consumer Durable Loans, Digital Product Loans, Two-wheeler Loans, Microfinance, Lifestyle Finance, and Tractor Loans.
Brand Portfolio
HDB Financial Services (HDBFS).
New Products/Services
Recent additions include Tractor Loans (2020) and Microfinance (2018). Secured loans now comprise 73% of the total loan book to ensure asset-backed growth.
Market Expansion
Focus on 'Aspirational India' by increasing branch presence in 1,157 cities and towns to capture semi-urban and rural demand.
Market Share & Ranking
Not explicitly ranked, but identified as a subsidiary of India's largest private sector bank with a loan book exceeding INR 1.11 Lakh Cr.
Strategic Alliances
Distribution partnerships with HDFC Ergo General Insurance and HDFC Standard Life Insurance for insurance product cross-selling.
External Factors
Industry Trends
The NBFC sector is evolving toward digital-first lending and micro-segmentation. HDBFS is positioned for this via its 'Digital Product Loans' and 'Lifestyle Finance' offerings launched between 2017-2019.
Competitive Landscape
Competes with other large NBFCs and private banks in the vehicle, consumer, and enterprise lending spaces.
Competitive Moat
Durable competitive advantage derived from HDFC Bank's 74.2% ownership, providing superior credit ratings (AAA), lower cost of funds (6.1%), and a trusted brand that attracts 21 million customers.
Macro Economic Sensitivity
Sensitive to interest rate cycles (COF impact) and rural economic health, particularly affecting the Tractor loan segment which shows a high 5.3% delinquency rate.
Consumer Behavior
Shift toward 'Aspirational India' demand, where customers seek quick digital loans for consumer durables and lifestyle needs.
Geopolitical Risks
Limited direct exposure as operations are domestic, but global interest rate shifts affect ECB borrowing costs.
Regulatory & Governance
Industry Regulations
Licensed by RBI as an NBFC. Complies with CRAR requirements, maintaining 21.82% (Tier-I at 17.26%), which is well above the regulatory minimum.
Taxation Policy Impact
Effective tax rate is reflected in the gap between PBT (INR 1,515 Cr) and PAT for H1 FY26. Deferred tax assets (Net) stood at INR 930 Cr as of September 2025.
Risk Analysis
Key Uncertainties
Asset quality deterioration is the primary risk, with Gross NPA increasing from 1.9% in March 2024 to 2.81% in September 2025, potentially impacting future RoA.
Geographic Concentration Risk
Diversified across 1,157 cities, though Crisil notes that geographic concentration risk is factored into their shortfall assessments for specific loan pools.
Third Party Dependencies
High dependency on HDFC Bank for both capital (74.2% stake) and BPO revenue (collection and back-office contracts).
Technology Obsolescence Risk
Mitigated by ongoing investments in a modern technology stack for onboarding, underwriting, and automated collections.
Credit & Counterparty Risk
Stage 3 loans (NPAs) stood at INR 3,126 Cr in September 2025, with a provision coverage of INR 1,711 Cr for these assets.
