HDB Financial Services (HDBFS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw robust consumption growth during the festive season, supported by favorable fiscal and monetary policy, with a resilient domestic economy despite global uncertainties.

• Customer base expanded to over 22 million, with a pan-India network of 1,744 branches across 1,165 cities.

• Q3FY26 profit after tax (excluding new labour codes) was ₹686 crore, up 45.2% year-over-year; 9MFY26 PAT reached ₹1,835 crore.

• Net interest income for Q3FY26 grew 22.1% year-over-year to ₹2,285 crore; net interest margin improved to 8.09%.

• Unaudited standalone financial results for the quarter and nine months ended December 31, 2025, were approved by the Board and reviewed by joint statutory auditors, with an unmodified opinion issued.

Financial highlights

• Disbursements in Q3FY26 were ₹17,917 crore, up 15% quarter-on-quarter and 14.9% sequentially.

• Gross loan book stood at ₹1,14,577 crore, growing 2.8% sequentially and 12.2% year-on-year; 74% of loans are secured.

• Net interest income was ₹2,285 crore, up 4.2% QoQ and 22.1% YoY; NIM improved to 8.09% from 7.95% in Q2 FY26.

• Reported PAT for Q3 was ₹644 crore; excluding a one-time labor code provision, PAT was ₹686 crore, up 18% sequentially and 45% YoY on an adjusted basis.

• Cost-to-income ratio for lending business reduced to 39.5% from 40.7% in Q2 FY26 and 42.5% a year ago.

Outlook and guidance

• Growth momentum expected to continue, especially in consumer finance, with positive trends in auto, two-wheelers, and durables.

• Management remains confident of achieving medium-term book growth targets of 18%-20%, aligned with nominal GDP plus 6-7%.

• NIM expected to remain in the 7.9%-8% range for the coming quarters.

• Credit cost targeted to improve by 10-20 basis points over the medium term.

• Proceeds from the IPO and non-convertible securities have been fully utilized as per stated objectives, with no deviations or variations reported.