HDB Financial Services, a non-banking finance company and HDFC Bank’s subsidiary, on Tuesday, released its fiscal first quarter earnings report with profit at Rs 567.70 crore. This was 2.41 per cent lower than Rs 581.70 crore recorded during the corresponding quarter of FY25. It posted revenue from operations at Rs 4,465.40 crore, posting a growth of 14.99 per cent as against Rs 3,883.80 crore recorded during the first quarter of previous financial year.
However, on a sequential basis, profit improved by 6.93 per cent as against Rs 530.90 crore reported during the March quarter of FY25.
HDB Financial recorded the net interest income (NII), the difference between interest earned and expended, at Rs 2091.8 crore, posting a growth of 18.3 per cent on-year. NII for the corresponding quarter of FY25 stood at Rs 1768.2 crore.
HDB Financial reported a net profit margin of 12.72 per cent for Q1FY26, lower than the 14.98 per cent reported in the year-ago period. Gross non performing asset (NPA) margin came in at 2.56 per cent, while net NPA margin stood at 1.11 per cent.
In terms of business segments, HDB Financial’s lending business recorded Q1 revenue at Rs 4,161.50 crore and the BPO services vertical posted revenue for the quarter at Rs 303.90 crore.
First earnings release after listing
This is the company’s first results announcement post getting listed on the exchanges earlier this month. The HDFC Bank’s NBFC subsidiary had made a decent debut on the D-street as the stock was listed at Rs 835, which was 13 per cent premium over the IPO price of Rs 740.
The Rs 12,500 crore IPO, which included a Rs 2,500 crore fresh issue and a Rs 10,000 crore offer-for-sale, was subscribed around 17.65 times. It attracted bids worth over Rs 1.61 lakh crore, showing strong investor interest despite market volatility.
HDB Financial Q1: Other performance indicators
As of June 30, 2025, HDB Financial reported Assets Under Management (AUM) of Rs 1,09,690 crore, marking a 14.7 per cent on-year growth from Rs 95,643 crore in the same period last year, reflecting continued momentum in its lending operations.
The company’s gross loans stood at Rs 1,09,342 crore as on June 30 compared to Rs 95,629 crore as at the end of June quarter of previous financial year, recording a growth of 14.3 per cent.
HDB Financial Q1: Distribution network
HDB Financial boasts a network of 1,771 branches spread across 1,166 cities and towns. The employee count for the lending business stood at 60,719.
The company has three business lines – Enterprise Lending (small and medium businesses lending), Asset Finance (Commercial Vehicles / Construction Equipment/ Tractor financing), and Consumer Finance (Auto, Two-wheeler and short tenor consumption loans).
The NBFC said that customer franchise grew to 20.1 million with an increase of 5.0 per cent during the quarter and 20.4 per cent on-year.
Shares of HDB Financial were down 0.4 per cent at 5:50 pm today at a trading price of Rs 841.10.
