HDB Financial Services Records Record Profit After Tax for Q1FY27; Asset Quality Improves

HDB Financial Services Records Record Profit After Tax for Q1FY27; Asset Quality Improves​

HDB Financial Services Limited (HDBFS) reported achieving its highest ever quarterly Profit After Tax of ₹785 crore for the quarter ended June 30, 2026. This figure represents a substantial year-on-year growth of 38.3%. The company also noted that Disbursements for Q1FY27 reached ₹17,629 crore, reflecting a rise of 16.2% year over year (YoY).

The unaudited results for the quarter demonstrated strong operational efficiency and improving asset quality across various metrics.

Key Financial Performance Highlights​

HDBFS reported robust growth across its income streams during the quarter. Net interest income rose by 19.9%, increasing from ₹2,092 crore in the previous year to ₹2,509 crore for the quarter ended June 30, 2026. Consequently, net total income grew by 16.8%, standing at ₹3,185 crore compared to ₹2,726 crore in Q1FY25.

The company's profitability metrics also saw significant increases:

• Pre-provisioning operating profit rose by 25.0% and was reported at ₹1,752 crore (up from ₹1,402 crore).
• Profit before tax increased by 44.0%, reaching ₹1,055 crore against the previous figure of ₹733 crore.

The increase in Profit After Tax to ₹785 crore accompanied a manageable rise in loan losses and provisions, which amounted to ₹697 crore for Q1FY27 (up from ₹670 crore).

Asset Growth and Quality Metrics​

As of June 30, 2026, HDBFS recorded an Asset Under Management (AUM) of ₹1,22,048 crore, marking a 11.3% growth compared to the previous year's AUM of ₹1,09,690 crore. Similarly, the Gross Loan Book stood at ₹1,21,846 crore as of June 30, 2026, an increase of 11.4% from ₹1,09,342 crore in Q1FY25.

The company also reported improvements in asset quality:

• Gross Stage 3 loans were recorded at 2.34%, down from 2.56% as at the end of June 2025.
• Net Stage 3 loans stood at 1.04%, a slight improvement from 1.11% in Q1FY25.
• Provision Coverage on stage 3 assets stood at 55.73%, compared to 56.70% as of June 30, 2025.

Quarterly Operational Data​

The following table summarizes key financial and operational metrics across the reported quarters:

About HDBFS​

HDB Financial Services Limited is a non-deposit taking non-banking finance company (NBFC). Established in 2007 as a subsidiary of HDFC Bank Limited, HDBFS operates as an upper layer NBFC. The company provides a wide range of lending products to individuals, micro enterprises, and emerging businesses through Enterprise Lending, Asset Finance, and Consumer Finance verticals. As of June 30, 2026, the Company's distribution network includes 1,710 branches across 1,165 cities or towns.

HDBFS Stock Price Movement​

Today, shares of HDB Financial Services Limited edged higher in post-market trading, settling at ₹751.70, reflecting a 1.52% gain on the close. This movement occurred amidst steady activity, with 406,750 shares transacted on the stock today.