HDFC Q3 preview | Net profit expected to fall 14% on higher base, lower dividend income

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26 Aug, 2025 12:21

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Housing Development Finance Corporation (HDFC) is expected to report a 14 percent year-on-year fall in net profit to Rs 2,524.9 crore when it reports its December quarter earning later on February 2, according to an average of estimates by five brokerages polled by Moneycontrol.

The decline in profits of the non-bank lender will be on account of lower dividend income in the quarter as well one-time capital gains of close to Rs 160 crore in the year-ago quarter, analysts said.

The country’s largest housing finance company is expected to report a mere 2.6 percent on-year growth in net interest income (NII) to Rs 4,107 crore likely because of the lacklustre performance of the non-individual loan segments.

On the individual loan side, the performance is likely to be strong. Kotak Equities expects a 16 percent year-on-year rise in the loan book of individual loans.

Analysts expect the strong growth in the individual loans segment to drive assets under management higher by 12-16 percent on-year in the quarter.

On the operating front, the performance is expected to be muted. The company’s pre-provision operating profit is seen falling 2.9 percent on-year to Rs. 4,222 crore in the December quarter due to higher costs and muted NII growth.

Brokerage firm Motilal Oswal Financial Services said that HDFC’s margins will contract sequentially due to moderation in blended yields and negative carry of liquidity coverage ratio requirements.

At 11.26 am, HDFC was trading 1.2 percent higher at Rs 2,596 on the National Stock Exchange.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.