On a quarter-on-quarter (QoQ) basis, net profit rose 6.93%, while net sales increased 4.67% in Q1 FY26.
Profit before tax stood at Rs 732.50 crore, registering a 6.53% YoY decline, but was up 4.01% compared to the previous quarter.
The company’s Assets Under Management (AUM) reached Rs 1,09,690 crore as of 30 June 2025, marking a 14.7% growth from Rs 95,643 crore a year earlier. Total Gross Loans grew 14.3% year-on-year to Rs 1,09,342 crore.
Net Interest Income (NII) rose 18.3% YoY to Rs 2,092 crore, while net total income increased 14.2% to Rs 2,726 crore. Pre-provisioning operating profit grew 17.2% to Rs 1,402 crore.
However, loan losses and provisions surged to Rs 670 crore in Q1 FY26, up from Rs 412 crore in the same period last year.
Asset quality weakened, with Gross Stage 3 loans rising to 2.56% from 1.93% a year ago, and Net Stage 3 loans increasing to 1.11% from 0.77%. Provisioning coverage ratio on Stage 3 assets fell to 56.70%, compared to 60.24% as of 30 June 2024.
On the regulatory front, the company’s capital adequacy ratio improved to 20.18%, up from 18.84% a year ago. However, the liquidity coverage ratio declined to 151%, down from 162% in Q1 FY25.
HDB Financial Services (HDBFS) is a non-deposit taking non-banking finance company (NBFC) offering a wide range of loan products to individuals, emerging businesses, and micro-enterprises. Established in 2007 as a subsidiary of HDFC Bank Limited, HDBFS is categorized as an upper-layer NBFC by the RBI. HDBFS offers a large portfolio of lending products that cater to a growing and diverse customer base through a wide omni-channel distribution network. Its lending products are offered through the three business verticals: Enterprise Lending, Asset Finance, and Consumer Finance. As of June 30, 2025, the Company’s distribution network spans 1,771 branches across 1,166 cities/towns.
HDB Financial Services made a debut on the stock exchanges on 02 July 2025, with its shares listing at Rs 835, a 12.84% premium to the issue price of Rs 740. The company's initial public offering (IPO), which closed on 27 June 2025, was subscribed 16.69 times. The IPO was priced within a band of Rs 700 and 740 per share.