HDB Financial Services Reports Strong Growth: FY26 Profit After Tax Up 16.9%

HDB Financial Services Limited (HDBFS), a leading upper-layer NBFC and subsidiary of HDFC Bank, today announced its audited financial results for the quarter and full year ended March 31, 2026. The company demonstrated robust operational performance, characterized by double-digit growth in profitability and assets under management.

Annual Performance Overview

For the full fiscal year 2026, HDBFS reported a Profit After Tax (PAT) of ₹2,544 crore, marking a 16.9% increase over the ₹2,176 crore recorded in FY25. This growth was supported by a steady expansion of the loan book and improved margins.

Q4FY26 Financial Highlights (Year-on-Year)

The fourth quarter saw accelerated momentum across key financial metrics:

Net Interest Income (NII): Increased by 21.6% to ₹2,399 crore.

Net Total Income: Rose by 17.1% to reach ₹3,063 crore.

Pre-provisioning Operating Profit: Grew by 26.7% to ₹1,696 crore.

Profit After Tax (Quarter): Surged by 41.4% to ₹751 crore compared to ₹531 crore in Q4FY25.

Balance Sheet and Asset Quality

As of March 31, 2026, the company's Assets Under Management (AUM) stood at ₹1,18,733 crore, a growth of 10.7% year-on-year.

The loan mix remained diversified across three primary verticals:

Enterprise Lending: 38%
Asset Finance: 38%
Consumer Finance: 24%

Approximately 74% of the gross loans are secured, providing a strong safety buffer. In terms of asset quality, the Gross Stage 3 loans stood at 2.44%, compared to 2.26% as of March 31, 2025. The company maintains a healthy Provision Coverage Ratio of 55.53% on stage 3 assets.

Operational Metrics and Reach

HDBFS continues to expand its physical and digital footprint. The distribution network now spans 1,730 branches across 1,161 cities and towns, offering an omni-channel experience to its diverse customer base of individuals and micro-enterprises. The company's Net Interest Margin (NIM) improved to 8.2% for the quarter, while the Return on Average Assets (ROA) rose to 2.5%.

Shares of HDB Financial Services Limited was last trading in BSE at Rs. 644.20 as compared to the previous close of Rs. 615.20. The total number of shares traded during the day was 51324 in over 2207 trades.

The stock hit an intraday high of Rs. 654.00 and intraday low of 628.00. The net turnover during the day was Rs. 32705979.00.

Source : Equity Bulls

Keywords

HDBFinancialServices INE756I01012 HDBFS NBFC Q4FY26 Q4FY2026 FY26 FY2026 ResultUpdate