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– Net profit down 2.4% to ₹568 crore from ₹582 crore last year

– Revenue up 15% to ₹4,465 crore from ₹3,884 crore last year

– Disbursements down 8% from last year to ₹15,171 crore

– Net Interest Income up 18% from last year to ₹2,092 crore

– Net Interest Margin at 7.7% from 7.6% last year

– Gross NPA at 2.56% from 2.26% in the previous quarter

– Gross loans up 14% from last year to ₹1.11 lakh crore

– Return On Assets for the June quarter stood at 1.94%, which includes assets of nearly ₹9,000

– Return on Equity (RoE) for the quarter stood at 13.16%

– Earnings Per Share for the quarter stood at ₹7.1, while Book Value per Share stood at ₹225.4

– Assets Under Management (AUM) growth of 14.7% year-on-year to ₹1,09,690 crore

– Pre-Provisioning Operating Profit up 17.2% to ₹1,402 crore from ₹1,196 crore last year

– Loan losses and provisions increase to ₹670 crore from ₹412 crore last year.

– Provision Coverage Ratio (PCR) at 56.7% on stage 3 assets, compared to 60.24% in June last year

– Borrowing mix remains well-diversified with 39% of our borrowings as on June 30, 2025 coming from NCDs, 39% from bank loans, rest from a mix of CPs, ECB, Perp & Sub-debts.

– Total CRAR of 20.18% at the end of the June quarter.

– Return On Assets for the June quarter stood at 1.94%, which includes assets of nearly ₹9,000

– Return on Equity (RoE) for the quarter stood at 13.16%

– Earnings Per Share for the quarter stood at ₹7.1, while Book Value per Share stood at ₹225.4

– Credit costs for the quarter increase to ₹670 crore from ₹634 crore in March and ₹412 crore in June last year

– BPO Services contributed to 1.9% of the total profit before tax

– Net profit for the quarter saw a marginal decline from the same quarter last year

– Customer Franchise grows to 20.1 million, up 20.4% from last year

– Branch count at 1,171, across 1,166 cities and towns

– Cost to income ratio for lending business at 42.7% from 42.9% last quarter and 43.2% last year.

– Assets Under Management (AUM) growth of 14.7% year-on-year to ₹1,09,690 crore

– Pre-Provisioning Operating Profit up 17.2% to ₹1,402 crore from ₹1,196 crore last year

– Loan losses and provisions increase to ₹670 crore from ₹412 crore last year.

– Provision Coverage Ratio (PCR) at 56.7% on stage 3 assets, compared to 60.24% in June last year

– Net profit declined 2.4% YoY to ₹568 crore vs ₹582 crore

– Revenue grew 15% YoY to ₹4,465 crore vs ₹3,884 crore

– Disbursements declined 14% QoQ and 8% YoY to ₹15,171 crore

– Gross loans increased 14% YoY and 2% QoQ to ₹1.1 lakh crore

– Net Interest Income (NII) grew 18% YoY to ₹2,092 crore vs ₹1,768 crore

– Net Interest Margin (NIM) stood at 7.7% vs 7.6% QoQ

– Gross NPA rose to 2.56% vs 2.26% QoQ

– Disbursements fall 14% QoQ and 8% YoY to ₹15,171 crore

– Gross Loans rise 14% YoY and 2% QoQ to ₹1.1 lakh crore

– NII up 18% YoY to ₹2,092 crore Vs ₹1,768 crore (YoY)

– Net Interest Margin stood at 7.7% Vs 7.6% (QoQ)

– Gross NPA at 2.56% and Net NPA At 1.11%

– Net profit down 2.4% to ₹568 Cr Vs ₹582 Cr (YoY)

– Revenue up 15% At ₹4,465 Cr Vs ₹3,884 Cr (YoY)

Emkay Global expects a Return on Assets (RoA) of 2.7% and a Return on Equity (RoE) of 17% for HDB Financial by March 2028. It also expects the company’s Assets Under Management (AUM) to grow at a CAGR of 20% and Earnings Per Share (EPS) at a CAGR of 27% between FY25 and FY28.

HDB Financial Services operates in three business verticals – Enterprise, Asset Finance and Consumer.

Most analysts covering HDB Financial’s IPO had given it a ‘Subscribe’ rating, citing strong growth prospects and the backing of the HDFC brand. In terms of valuation, HDB Financial appeared more attractive than peers like Chola Investment and Bajaj Finance, though it seemed expensive relative to Shriram Finance.

– A robust brand franchise and granular retail lending model

– A wide-reaching omni-channel (phygital) distribution platform

– Access to low-cost funding anchored by AAA-rated credit profile

HDB Financial Services aims to expand its footprint in underpenetrated markets and broaden its product offerings. It plans to enhance its presence in smaller cities, increase its loan book in sectors like microfinance and small business loans, and leverage technology for superior customer engagement and efficient operations.

Shares of HDB Financial Services ended 0.3% lower on Tuesday at ₹841.15, ahead of the earnings announcement.

– BPO Revenue Is A Small Part Of Our Net Revenue

– Relative To The Lending Business, BPO Revenue Will Decline

– Only LAP Book Is Linked To Floating And The Remaining Approximately 75% Book Is Fixed

Just a few minutes ago, HDB Financial Services, from levels of ₹845, slipped to an intraday low of ₹839.35.

The stock is now back at levels of ₹842, indicating volatile moves ahead of results.

– Don’t Get Any Business From HDFC Bank As We Run Our Own Biz & Tech Stack

– Draft Regulations For Overlapping Biz Are Still Under Discussion With Regulators

– We Run As An Independent Business And Only Do Retail Lending

Trading activity on HDB Financial’s shares remain subdued ahead of the quarterly earnings report.

Only 7.7 lakh shares of the company have been traded so far, in comparison to the previous three-day average of around 30 lakh shares.

– HDB Financial – 2.26%

– Chola Finance – 2.81%

– Shriram Finance – 4.55%

– Bajaj Finance – 0.96%

– Has 1,680 branches & a diverse AUM mix, largely focused on retail & SME lending

– Vehicle finance and Loans Against Property among its largest loan portfolios

– To be utilised for Tier-1 capital augmentation

– For future capital requirements including onward lending

– To ensure compliance with regulatory requirements on capital adequacy

– Total Assets: ₹1.09 lakh crore

– Gross Loan Book: ₹1.03 lakh crore

– Net Profit (after tax): ₹531 crore

– Capital adequacy ratio: 19.22%

– Gross Stage 3 ratio : 2.26%

– Liquidity coverage ratio: 161%

– Moderate asset quality

– Presence in unsecured and relatively riskier segments

– Strong liquidity

– Stake sale overhang

– Strong linkage with parent HDFC Bank

– Established presence in granular retail segment

– Comfortable capital structure and diversified resource profile

Trading in HDB Financial Services continues to remain choppy ahead of its quarterly results.

The stock is trading little changed at ₹844 as of 10:30 AM.

I think there is very little upside, and risks are more to the downside than to the upside from current levels. In our view, there is stress in the vehicle finance portfolio, both from a growth as well as from an asset quality perspective in the near term. And we do believe earnings could be weaker, especially for vehicle finance, NBFCs in the near term, and HDB indeed has a good 50% of the mix exposed to various vehicle segments. So that’s the challenge here. And clearly it looks like there is not much money to be made from current levels based on our fair value assessment of HDB financial services, increasing risks to the downside.

Gross Stage 3 Loans amounted to 2.26% of Total Gross Loans as at March 31, 2025, which was an increase from 1.90% as at March 31, 2024

Customers may default on their repayment obligations or may delay payments due to various factors. HDB also experience a drop in collection efficiency.

Asset quality will be a key monitorable.

– One of the leading, diversified retail-focused NBFC

– Categorized as an Upper Layer NBFC (NBFC-UL) by the RBI

– Three business verticals: Enterprise Lending (~40%), Asset Finance (~37%) and Consumer Finance (~23%) (data as of 1HFY25 as per DRHP)

– One of India’s largest and fastest growing customer franchises with customer base of 192 lakh customers

Shares of HDB Financial Services have opened lower on the day of its earnings announcement.

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