HDB Financial Services on July 15 reported a net profit of Rs 568 crore for the first quarter of the financial year 2026. This marks a fall of over 2 percent from the Rs 582 crore net profit reported in the corresponding quarter of the previous financial year.
While announcing its first ever quarterly earnings post listing, the NBFC also reported a 15 percent rise in revenue from operations to Rs 4,465 crore for Q1 FY26. It had reported a revenue of Rs 3,884 crore for Q1 FY25.
HDB Financial Services reported a net profit margin of 12.72 percent for the quarter under review, lower than the 14.98 percent reported in the year-ago period. Gross non performing asset (NPA) margin stood at 2.56 percent, while net NPA margin stood at 1.11 percent.
Earlier this month, the shares of the company had made a decent debut on stock markets, listing at a premium of 13 percent to the IPO price. The Rs 12,500-crore maiden public issue had seen strong investor interest, being subscribed 16.69 times its offer size within its three days of bidding between June 25 and June 27. After listing, HDB Financial Services became the eighth most valuable NBFC with nearly Rs 70,000-crore m-cap.
The IPO saw the biggest listing day gains among its over Rs 10,000-crore peers launched since the outbreak of COVID-19 pandemic in 2020.
Asset quality
In April-June quarter, gross stage 3 of the company stood at 2.56 percent, as against 2.26 percent in a quarter ago period, and 1.93 percent in a year ago period.
In absolute terms, stage 3 loans of the total gross loans in the first quarter of the current financial year stood at Rs 2,794 crore, as compared to Rs 2,414 crore in a quarter ago period, and Rs 1,843 crore in a year ago period.
The provision coverage in the stage 3 loans stood at Rs 1,584 crore as on June 30, 2025, as compared to Rs 1,351 crore as on March 31, 2025, and Rs 1,110 crore as on June 30, 2024, according to investors presentation.
Provisioning coverage on the Stage 3 book stood at 56.70 percent.
Credit Cost percent of Total Gross Loans increased to 2.5 percent as on June 30, 2025, from 2.4 percent as on March 31, 2024, and 1.8 percent as on June 30, 2024.
Loans and disbursements
Total Gross Loans of the company increased by 14.3 percent on-year to Rs 1.09 lakh crore in April-June quarter, from Rs 95,629 crore in a year ago period. On sequential basis, total gross loan book increased by 2.31 percent.
Of the total gross loan book, 38.7 percent consists of Enterprise Lending, 37.8 percent of Asset Finance, and 23.5 percent of Consumer Finance, as per investor presentation.
In the reporting quarter, disbursement fell 8.09 percent on-year to Rs 15,171 crore, from Rs 17,643 crore in a quarter ago period, and Rs 16,507 crore in a year ago period.
Net interest income and margins
Net interest income of the company increased to Rs 2,092 crore in Q1FY26, as compared to Rs 1,973 crore in Q4FY25, and Rs 1,768 crore in Q1FY25, as per investor presentation. Net interest income saw a growth of 18.3 percent on-year and 6 percent on-quarter.
In April-June quarter, net interest margin increased to 7.7 percent, from 7.6 percent each in Q4FY25 and Q1FY25.
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