HDB Financial Sevices reported net profit at Rs 785.2 crore in Q1FY27, up 38.31% year-on-year (YoY) from Rs 567.7 crore reported in Q1FY26.
The NBFC’s interest income stood at Rs 4,262 crore, up % from Rs 3,831.5 crore reported a year ago. The company also reported Net Total Income of Rs 3,185 crore, up 16.8% year-on-year.
Meanwhile, Net Interest Income (NII), which is the difference between interest earned and interest paid, increased 19.9% to Rs 2,509 crore from Rs 2,092 crore in the same quarter last year.
HDB Financial Sevices’ Net Interest Margin came at 8.35% from 8.23% reported in Q4FY26. Gross NPA (Non performing assets) stood at 2.34% and net NPA came at 1.04%.
Loan book and assets continue to expand
HDB Financial Services Assets Under Management (AUM) increased 11.3% year-on-year to Rs 1,22,048 crore, while the Gross Loan Book rose 11.4% to Rs 1,21,846 crore as of June 30, 2026.
The company also reported Pre-Provisioning Operating Profit (PPOP) of Rs 1,752 crore, marking a 25% increase over the year-ago period.
Loan losses and provisions stood at Rs 697 crore, compared with Rs 670 crore in the corresponding quarter last year.
Asset quality improves further
The company’s Gross Stage 3 loans declined to 2.34% from 2.56% a year ago. Similarly, Net Stage 3 loans improved to 1.04%, compared with 1.11% in the year-ago period.
The Provision Coverage Ratio stood at 55.73% on Stage 3 assets, compared with 56.70% a year earlier.
Abou HDB Financial
HDB Financial is part of HDFC Bank, which is the largest private sector bank in India.