Subscribe for HDB Financial Services Ltd IPO; LKP Research

LKP Research, HDB Financial Services Ltd

HDB Financial Services is the 7th largest, diversified retail-focused nonbanking financial company (“NBFC”) in India in terms of the size of the total gross loan book, at ₹1,069 bn as of March 31, 2025, amongst its NBFC peers. The Company is categorised as an Upper Layer NBFC (“NBFC-UL”) by the RBI and is registered with the IRDAI as a corporate agent (composite). The company’s lending products are offered through its 3 business verticals: Enterprise Lending, Asset Finance and Consumer Finance. As of March 31, 2025, Enterprise Lending, Asset Finance and Consumer Finance accounted for 39.30%, 38.03% and 22.66% of its Total Gross Loans, respectively. The products and financial services are offered through a wide omni-channel “phygital “distribution network. As of March 31, 2025, the company has a pan India network of 1,771 branches in 1,170 towns and cities across 31 States and Union Territories. HDB Financial Services is India’s 2nd largest and 3rd fastest growing customer franchise amongst its NBFC peers, and it has served 19.2 million customers as of March 31, 2025. The customers have grown at a CAGR of 25.45% between March 31, 2023, and March 31, 2025.

Valuation and Outlook

The company has a diversified liability franchise supported by a strong credit rating of AAA stable by CRISIL and CARE, which is the highest that can be assigned on the credit rating scale for any NBFC in India.