HDB Financial Services reported a strong financial performance for the quarter ended March 31, 2026, with profit after tax (PAT) rising 41.4% year-on-year to Rs 751 crore, compared to Rs 531 crore in the same period last year.
Key Highlights
- HDB Financial Services reports 41% rise in Q4 profit driven by strong income growth.
- AUM and loan book expand steadily while asset quality sees marginal increase in stressed loans.
The NBFC’s net interest income (NII) increased 21.6% to Rs 2,399 crore during the quarter, up from Rs 1,973 crore a year earlier. Net total income also rose 17.1% year-on-year to Rs 3,063 crore, reflecting steady business growth.
Pre-provisioning operating profit climbed 26.7% to Rs 1,696 crore, while profit before tax (PBT) surged 43.6% to Rs 1,011 crore, highlighting improved operational efficiency.
Loan losses and provisions for the quarter stood at Rs 685 crore, marking an 8% increase compared to Rs 634 crore in the corresponding quarter last year.
On asset quality, gross Stage 3 loans rose slightly to 2.44% as of March 31, 2026, compared to 2.26% a year ago. Net Stage 3 assets also edged up to 1.09% from 0.99%, while the provision coverage ratio stood at 55.53%.
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Annual Performance and AUM Growth
For the full financial year FY26, HDB Financial Services reported a 16.9% increase in PAT to Rs 2,544 crore, compared to Rs 2,176 crore in FY25.
Assets under management (AUM) grew 10.7% year-on-year to Rs 1,18,733 crore, while the gross loan book expanded 10.9% to Rs 1,18,493 crore, indicating sustained lending momentum.
Fundraising and Dividend Announcement
The company’s board has approved raising funds through debt securities worth up to Rs 32,824.72 crore via private placement, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Additionally, the board has recommended a final dividend of Rs 2 per equity share (face value Rs 10) for FY26, pending shareholder approval.
