HDB Financial Services (HDBFS) Q1 25/26 earnings summary

Executive summary

• Gross loan book reached INR 109,342 crore as of June 30, 2025, up 2.3% sequentially and 14.3% year-on-year, with a customer base of 20.1 million and 1,771 branches across 1,166 cities.

• 73% of loans are secured, with a diversified portfolio across enterprise lending, asset finance, and consumer finance.

• Net interest income for Q1 FY26 was INR 2,092 crore, up 18.3% year-on-year, with NIM at 7.7%.

• Profit after tax for Q1 FY26 was INR 568 crore, up 7.0% sequentially but down 2.4% year-on-year.

• The company completed a successful IPO, raising INR 2,500 crore, and is now listed on NSE and BSE.

Financial highlights

• Disbursements for the quarter were INR 15,171 crore, down 14% sequentially and 8.1% year-on-year.

• Cost-to-income ratio improved to 42.7% from 43.2% a year ago.

• Revenue from operations for Q1 FY26 was INR 44,654 million, up from INR 38,838 million in Q1 FY25.

• Net profit for Q1 FY26 was INR 5,677 million, compared to INR 5,817 million in Q1 FY25 and INR 5,309 million in Q4 FY25.

• Lending business revenue for Q1 FY26 was INR 41,615 million, with segment result of INR 7,336 million.

Outlook and guidance

• Management expects benefits from recent rate reductions and IPO proceeds to reflect in subsequent quarters.

• Asset quality and credit costs are expected to stabilize and improve, especially in commercial vehicles and unsecured business loans.

• No formal AUM growth or OpEx guidance was provided due to macroeconomic uncertainties.

• Proceeds from NCDs and IPO have been fully utilized for stated purposes.

• Well-capitalized with CRAR at 20.18% as of June 30, 2025.