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Earnings Call

HDB Financial Services Earnings Call: Key Takeaways

HDBFS achieved its highest-ever quarterly PAT of ₹785 crores for Q1 FY27. Strategy focuses on AI-led lifecycle journeys under the 'Shikhar' umbrella and diversifying product mix for better risk-adjusted returns.

Highlights
Revenue growthNII grew 19.9% YoY to ₹2,509 crores.
MarginsNIM improved to 8.35% from 7.74% YoY.
Order bookGross loan book ₹1,21,846 Cr; Secured loans comprise 73.9%.
Demand visibilityStrong demand in Consumer Finance; Asset Finance recovery expected shortly.
Management confidenceHigh confidence in reaching 18% growth trajectory by next year.

Growth

PAT grew 38.3% YoY and 4.6% QoQ. Gross loan book reached ₹1,21,846 crores, up 11.3% YoY.

Outlook

Targeting 2.5% ROA and steady 2.3% credit costs. Business loan growth expected to accelerate from Q3 onwards.

Risks

Potential headwinds from West Asia conflict, El Nino-related monsoon risks, and fuel price volatility for CV operators.

Last quarter's promises, checked

Delivered

  • Guided 8%+ NIM → delivered 8.35% (= BEAT)
  • Guided 2.3% +/- credit costs → delivered 2.3% (= BEAT)
  • Guided 2.5% ROA target → delivered 2.48% (~2.5%) (= BEAT)

Partly delivered

  • Guided Stage 3 reduction → delivered 2.34% from 2.44% (= BEAT)

Missed

  • Guided 18-20% loan growth → delivered 11.3% (= MISS)
Source

Earnings Call filed with BSE, NSE: HDBFS. Summary written with AI assistance from the document.

Read the document ↗

HDB Financial Services Ltd: key numbers

Share price
₹648.15
Market cap
₹53,848 Cr
Revenue (annual)
₹18,430 Cr
Net profit (annual)
₹2,544 Cr
P/E (TTM)
19.5×Sector 22.0×
Promoter holding
74.12%+0.00% QoQ
FII holding
3.55%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

More from HDB Financial Services Ltd

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17:11 IST BSE
Board Meeting Date

HDB Financial Services Board Meeting Date

HDB Financial Services Limited will hold a Board meeting on October 14, 2026, to consider and approve the unaudited financial results for the quarter ending September 2026.

15:20 IST BSE
Debt & Borrowing

HDB Financial Services Debt & Borrowing: ₹50.26 Cr

HDB Financial Services paid ₹50.26 Crore in interest across three NCD series on 22 Sep 2026. All debentures carried a 7.18% annual coupon rate.

Value
₹50.26 Cr
12:36 IST NSE
Employee Stock Options

HDB Financial Services Employee Stock Options

HDB Financial Services allotted 29,480 equity shares to employees upon ESOP exercise on September 21, 2026. Paid-up capital increased to Rs. 830.79 Crore.

13:56 IST NSE
Debt & Borrowing

HDB Financial Services Debt & Borrowing: ₹2,018 Cr

HDB Financial Services allotted 20,000 NCDs aggregating to Rs.2,018.17 Crore via private placement. The 1064-day debentures carry an 8.05% coupon secured by first charge on receivables.

Value
₹2,018 Cr
Execution
1064 Days (maturity August 08, 2029)
13:17 IST BSE
Credit Rating

HDB Financial Services Credit Rating

CRISIL Ratings has reaffirmed the 'AAA' and 'A1+' ratings for various debt instruments of HDB Financial Services Limited, maintaining a stable outlook.

17:33 IST BSE
Board Meeting Date

HDB Financial Services Board Meeting Date

HDB Financial Services Ltd has scheduled a meeting of its Debenture Allotment Committee on September 9, 2026, to consider raising funds through a debt issue.