HDB Financial share price plunges nearly 4% to fresh low as Q1 results disappoint

HDB Financial share price: The shares of recently-listed HDB Financial declined nearly 4% in intraday trade on Wednesday, July 16, to a new low as investors were disappointed by the dip in the company's profit for the quarter ended June 30 and an increase in provisions, despite a jump in revenue.

The HDFC Bank subsidiary, in its first earnings announcement post stock market debut, reported a 2.4% year-on-year (YoY) fall in the net profit to ₹ ₹567.7 crore in Q1 of the financial year 2025-26 (FY26). The figure stood at ₹581.7 crore in the corresponding quarter a year ago.

HDB Financial Services saw a notable increase in provisions this quarter, with loan losses and provisions rising to ₹670 crore, up from ₹412 crore a year ago. This surge in provisioning impacted profitability, dragging down profit before tax to ₹733 crore from ₹784 crore in Q1 FY25.

Asset quality also deteriorated, as gross stage 3 loans rose to 2.56% from 1.93%, while net stage 3 loans increased to 1.11% from 0.77%. Additionally, the provision coverage ratio on stage 3 assets declined to 56.7%.

The net interest income (NII) saw an 18.3% YoY growth to ₹2091.8 crore in the quarter under review. The figure stood at ₹1768.2 crore in the same quarter last fiscal. It was also higher sequentially than ₹1972.8 crore.

The overall revenue from operations saw a 15% YoY and a 4.6% quarter-on-quarter (QoQ) increase to ₹4465.4 crore in Q1 FY26.

HDB Financial's asset under management (AUM) saw a 14.7% growth to ₹1,09,690 crore in the June 2025 quarter from ₹95,643 crore a year ago.

HDB Financial share price declined nearly 4% to the day's low of ₹810 apiece on the BSE today, its fresh 52-week low. HDFC Financial's 52-week high stands at ₹891.65 apiece, which it hit on July 3.

Despite this, HDFC Financial IPO investors are sitting on over 9% gains.

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