Quarterly Financial Results
HDB Financial Services Reports Highest-Ever Quarterly PAT of ₹785 Crore in Q1 FY27
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HDB Financial Services Limited reported its highest-ever quarterly Profit After Tax (PAT) of ₹785 crore for Q1 FY27, marking a 38.3% year-on-year increase. The company delivered healthy growth in net interest income, loan book, and disbursements while further improving asset quality, supported by a diversified lending portfolio and a strong capital position.
PRICE-SENSITIVE TRIGGER
Event: Q1 FY27 Unaudited Financial Results
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: HDB Financial Services recorded record quarterly profitability driven by higher lending income, improving margins, healthy loan growth, and better asset quality, reinforcing its operating momentum entering FY27.
Financials:
Key Metrics:
- Profit After Tax (PAT): ₹785 crore (+38.3% YoY)
- Profit Before Tax (PBT): ₹1,055 crore (+44.0% YoY)
- Net Interest Income (NII): ₹2,509 crore (+19.9% YoY)
- Net Total Income: ₹3,185 crore (+16.8% YoY)
- Pre-Provision Operating Profit (PPOP): ₹1,752 crore (+25.0% YoY)
- Loan Losses & Provisions: ₹697 crore (+4.1% YoY)
- Assets Under Management (AUM): ₹1,22,048 crore (+11.3% YoY)
- Gross Loan Book: ₹1,21,846 crore (+11.4% YoY)
- Disbursements: ₹17,629 crore (+16.2% YoY)
- Net Interest Margin (NIM): 8.4% (vs 7.7% in Q1 FY26)
- Gross Stage 3 Assets: 2.34% (vs 2.56% YoY)
- Net Stage 3 Assets: 1.04% (vs 1.11% YoY)
- Provision Coverage Ratio: 55.73%
- Return on Average Assets (RoA): 2.5%
- Earnings Per Share (EPS): ₹9.5
- Book Value Per Share: ₹257
Segment Performance:
- Enterprise Lending: 38% of Gross Loan Book
- Asset Finance: 37% of Gross Loan Book
- Consumer Finance: 25% of Gross Loan Book
- Secured Loans: 74% of Gross Loan Book
Highlight:
- HDB Financial Services posted its highest-ever quarterly PAT of ₹785 crore, supported by nearly 20% growth in net interest income, 11.4% loan book expansion, and continued improvement in asset quality.
What Happened ?
HDB Financial Services announced its unaudited financial results for the quarter ended 30 June 2026, reporting record quarterly profitability alongside continued growth in lending operations.
The company expanded its Assets Under Management and Gross Loan Book by over 11% year-on-year while maintaining strong disbursement growth. Asset quality improved further with lower Gross and Net Stage 3 ratios, while Net Interest Margin expanded to 8.4%, reflecting healthy lending profitability.
key details
Earnings Performance:
- Net Interest Income increased 19.9% YoY to ₹2,509 crore.
- Net Total Income rose 16.8% YoY to ₹3,185 crore.
- Pre-Provision Operating Profit grew 25.0% YoY to ₹1,752 crore.
- Profit Before Tax climbed 44.0% YoY to ₹1,055 crore.
- Profit After Tax reached a record ₹785 crore, representing 38.3% YoY growth.
Lending Growth:
- Assets Under Management increased to ₹1,22,048 crore.
- Gross Loan Book expanded to ₹1,21,846 crore.
- Quarterly disbursements rose 16.2% YoY to ₹17,629 crore.
- Secured loans continued to account for 74% of the overall loan portfolio.
Asset Quality:
- Gross Stage 3 assets improved to 2.34% from 2.56% a year earlier.
- Net Stage 3 assets declined to 1.04% from 1.11%.
- Provision Coverage remained healthy at 55.73%.
- Loan loss provisions increased only 4.1% YoY, indicating controlled credit costs despite business expansion.
Portfolio Composition:
- Enterprise Lending remained the largest business segment at 38% of Gross Loan Book.
- Asset Finance contributed 37%.
- Consumer Finance accounted for 25%.
- The diversified portfolio continued to support balanced loan growth across customer segments.
Risk Analysis
Summary:
- The company continues to demonstrate healthy growth and improving asset quality. However, future performance will remain dependent on maintaining credit quality, funding costs, and sustained demand across retail and enterprise lending segments.
Key Risks:
- Rising provisions could impact future profitability if credit costs increase.
- Loan growth must be accompanied by continued asset quality discipline.
- Interest rate movements could influence lending spreads and borrowing costs.
- Macroeconomic conditions may affect borrower repayment behaviour.
Worst Case:
- If credit quality deteriorates or funding costs increase materially, earnings growth and return ratios could moderate despite continued loan book expansion.
Risk Level: Medium
Company Commentary
- HDB Financial Services recorded its highest-ever quarterly PAT of ₹785 crore.
- Gross Loan Book crossed ₹1.21 lakh crore with continued double-digit growth.
- Asset quality improved with lower Gross and Net Stage 3 ratios.
- The company continued to strengthen its diversified lending franchise through Enterprise Lending, Asset Finance, and Consumer Finance verticals.
Official Exchange Filing: HDB Financial Services Limited
