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HDB Financial shares jump 11% on strong Q4 results; Here are the key triggers aheadHDB Financial Services reported a 22% year-on-year growth in its Net Interest Income (NII) for the March quarter, which contributed to the 41% jump seen in the company's profitability.By Hormaz Fatakia   April 16, 2026, 9:16:38 AM IST (Updated)3 Min ReadHDB Financial Services Ltd. shares jumped as much as 11% in response to its quarterly results on Thursday, April 16. The results were reported after market hours on Wednesday. This is the biggest single-day gain that the stock has seen since its listing last year.

Shares had listed at a 13% premium in comparison to its issue price.

Brokerage firm Motilal Oswal believes that the valuations of HDFC Bank's non-bank lending arm largely factor in the medium-term growth potential of the company and therefore, they will look for three important factors for any potential re-rating.

A clear evidence of stronger execution on loan growth, ability to navigate industry and product cycle, along with structural and not just cyclical improvement in return ratios are the three most important factors that Motilal Oswal will be watching out for any potential re-rating for HDB Financial Services.

Based on all of these factors, Motilal Oswal continues to remain "neutral" on HDB Financial but it has marginally raised its price target on the stock to ₹720 from ₹650 earlier.

HDB Financial Services reported a 22% year-on-year growth in its Net Interest Income (NII), which contributed to the 41% jump seen in the company's profitability.

Asset quality also improved on a sequential basis with Gross NPA at 2.44% from 2.81% in the previous quarter, while Net NPA improving to 1.09% from 1.25% in the December quarter.

Motilal Oswal expects HDB Financial's disbursements, Assets Under Management (AUM) and Profit After Tax (PAT) to grow at a Compounded Annual Growth Rate (CAGR) of 14%, 16% and 20% respectively over financial year 2026-2028, while Return on Assets (RoA) and Return on Equity (RoE) may see a 2.5% and 14.3% CAGR respectively over the same timeframe.

Nomura has also maintained its "neutral" rating on HDB Financial with a price target of ₹740, which is the issue price for the stock.

The brokerage said that the West Asia war now remains a key monitorable as management shifts its focus to growth.

Healthy improvements in HDB Financial's cost of funds can improve for another quarter.

On the flip side, Jefferies has maintained its "buy" rating and a price target of ₹845.

The brokerage expects a pick-up in AUM growth, lower credit costs and rangebound margins to drive a 22% Earnings Per Share (EPS) CAGR by financial year 2028. RoEs could also expand to over 15% during the same timeframe.

Shares of HDB Financial Services have opened 11.7% higher on Thursday at ₹720. The stock is back near its IPO price of ₹740 apiece. Shares had ended 5% higher on Wednesday ahead of the earnings announcement as well.

(With Inputs From Annanya Singh)Continue ReadingFirst Published: Apr 16, 2026 7:18 AM ISTTagsHDB FinancialQ4 resultsshare market today