HDB Financial Services LimitedQuarter ended Sep 30, 2026 Results & Financial Update
HDB Financial Services Limited: Quarter ended Sep 30, 2026 standalone results and company financials – revenue ₹5,005.30 Cr, PAT ₹780.20 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore HDB Financial Services Quarter ended Sep 30, 2026 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
HDB Financial Services reported total revenue/income of ₹5,005.3 crore for the quarter ended September 30, 2026, marking an increase compared to ₹4,545.4 crore in the corresponding period of the previous year and ₹4,937.9 crore in the preceding quarter.
Gross loan book expanded to ₹1,24,469 crore as of September 30, 2026, registering an 11.7% growth over ₹1,11,409 crore a year earlier and a 2.2% sequential expansion. Secured loans constituted 74% of the gross loan book.
Disbursements during the quarter accelerated to ₹18,522 crore, representing an 18.7% increase year-on-year and a 5.1% rise compared to the previous quarter.
Asset quality showed favorable year-on-year trends, with Gross Stage 3 loans (GNPA) improving to 2.43% as of September 30, 2026, compared to 2.81% a year ago (and 2.34% as of June 30, 2026). Net Stage 3 loans stood at 1.09%, compared to 1.27% in the corresponding period last year.
Net interest income for the lending business reached ₹2,534 crore, up 15.6% year-on-year, accompanied by a net interest margin (NIM) of 8.23% for Q2 FY27 compared to 7.95% in Q2 FY26.
The Board of Directors declared an interim dividend of ₹2 per equity share of face value ₹10 each, with the record date set for October 23, 2026.
01 · Business model
What does HDB Financial Services do?
HDB Financial Services Limited is an upper-layer, non-deposit-taking non-banking financial company (NBFC) established in 2007 as a subsidiary of HDFC Bank Limited. The company caters primarily to underserved and underbanked customers across low- to middle-income households with minimal or no prior credit history.
The company's operations span three key lending verticals: Enterprise Lending (focused on small and medium enterprises), Asset Finance (covering commercial vehicles, construction equipment, and tractor financing), and Consumer Finance (offering auto loans, two-wheeler loans, consumer durables loans, and short-tenor consumption loans).
HDB Financial Services distributes its products through an extensive omni-channel footprint, reaching 24.8 million customers via 1,701 branches spread across 1,156 cities and towns in India as of September 30, 2026. Over 80% of its branches are located outside the top 20 cities, with 71% positioned in tier 4 and beyond towns.
The institution maintains strong credit ratings, with long-term debt and bank facilities rated CARE AAA and CRISIL AAA, and short-term debt and commercial papers rated A1+, supporting a diversified funding mix comprising bank loans, non-convertible debentures, and other instruments.
02 · Historical context
What shaped the business before this quarter
Established in 2007 as a subsidiary of HDFC Bank Limited, subsequently growing into an upper-layer NBFC with a nationwide network.
Crossed the ₹100,000 million AUM milestone in FY12, crossed ₹500,000 million in FY19, and surpassed ₹1 trillion in AUM by FY24.
Transitioned to a publicly listed entity in 2025 with shares listed on both the National Stock Exchange of India (NSE: HDBFS) and BSE Limited (BSE: 544429).
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Quarter ended Sep 30, 2026 | Year-ago | Previous quarter |
|---|---|---|---|
| Total income | ₹5,005.30 Cr | ₹4,545.40 Cr | ₹4,937.90 Cr |
| Profit before tax | ₹1,043.70 Cr | ₹782.20 Cr | ₹1,055.09 Cr |
| Profit after tax | ₹780.20 Cr | ₹581.40 Cr | ₹785.19 Cr |
| EPS | ₹9.39 | ₹7.01 | ₹9.43 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Gross loan book grew by 11.7% year-on-year to ₹1,24,469 crore, driven by robust disbursement activity across enterprise lending, asset finance, and consumer finance.
Quarterly disbursements rose 18.7% year-on-year to ₹18,522 crore, supported by heightened retail and SME credit demand across tier-2 and tier-plus towns.
Net interest income for the lending business advanced 15.6% year-on-year to ₹2,534 crore, bolstered by portfolio expansion and stable lending yields.
NIM, spread, funding cost and credit cost
Net interest margin (NIM) for the lending business stood at 8.23% in Q2 FY27, comparing with 7.95% in Q2 FY26 and 8.35% in Q1 FY27.
Cost-to-income ratio for the lending business improved to 39.3% in Q2 FY27 from 40.7% in Q2 FY26, reflecting operating leverage across the branch network.
Cost of borrowings (quarterly annualized) stood at 7.04% as of September 30, 2026, supported by high-quality ratings (CARE AAA and CRISIL AAA).
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Total customer franchise expanded to 24.8 million as of September 30, 2026, registering an 18.4% year-on-year growth.
The loan book remains highly granular with an average ticket size of approximately ₹160,000, and the top 20 largest borrowers contributing approximately 0.33% of total loans.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Enterprise lending gross loans stood at ₹46,832 crore as of September 30, 2026, accounting for 37.6% of the total loan book, driven by loan against property and business loans.
Asset finance portfolio reached ₹45,565 crore (36.6% of total gross loans), comprising commercial vehicle loans, construction equipment loans, and tractor financing.
Consumer finance stood at ₹32,071 crore, representing 25.8% of the gross loan book, propelled by auto loans, consumer durables, and relationship personal loans.
BPO income (net) for the quarter contributed ₹18 crore to profit before tax, compared to ₹29 crore in Q2 FY26.
Geography and market mix
The distribution network expanded to 1,701 branches across 1,156 cities and towns in 31 states and union territories as of September 30, 2026.
Uttar Pradesh (14%), Tamil Nadu (12%), Maharashtra (9%), Rajasthan (7%), and Gujarat (6%) represent the largest geographical concentrations in the loan book.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
Advanced the 'Shikhar' AI-powered transformation initiative focusing on customer onboarding automation, Gen AI voice bots for engagement, and data-driven underwriting.
08 · Reported developments
What changed operationally
Reported a 34.2% year-on-year increase in profit after tax to ₹780 crore for Q2 FY27.
Gross Stage 3 ratio improved to 2.43% as of September 30, 2026, compared to 2.81% in the same period last year.
09 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Total borrowings stood at ₹1,04,441 crore as of September 30, 2026, with a debt-to-equity ratio of 4.9x.
Borrowing sources comprised 43.4% term loans and working capital demand loans, 28.5% non-convertible debentures, 12.1% external commercial borrowings, 5.7% securitisation, 5.0% subordinated debt, 3.9% commercial papers, and 1.5% perpetual debt.
Total CRAR stood robust at 21.37% (with Tier-I at 17.36% and Tier-II at 4.01%), and the liquidity coverage ratio (LCR) averaged 164% for the quarter.
10 · Beyond the numbers
What changed beyond the numbers
Reported update
Employee Headcount
Total employee headcount for the lending business stood at 61,522 as of September 30, 2026.
11 · Previous-quarter changes
What changed since the previous quarter
Gross loan book increased by 2.2% sequentially from ₹1,21,846 crore at June 30, 2026, to ₹1,24,469 crore at September 30, 2026.
12 · Key Q&A
The quarter, answered directly
What does HDB Financial Services do?
HDB Financial Services Limited is an upper-layer, non-deposit-taking non-banking financial company (NBFC) established in 2007 as a subsidiary of HDFC Bank Limited. The company caters primarily to underserved and underbanked customers across low- to middle-income households with minimal or no prior credit history.
What is the clearest takeaway from Quarter ended Sep 30, 2026?
HDB Financial Services reported total revenue/income of ₹5,005.3 crore for the quarter ended September 30, 2026, marking an increase compared to ₹4,545.4 crore in the corresponding period of the previous year and ₹4,937.9 crore in the preceding quarter.
What drove earnings or loan-book movement?
Gross loan book grew by 11.7% year-on-year to ₹1,24,469 crore, driven by robust disbursement activity across enterprise lending, asset finance, and consumer finance.
What mattered most for margins, funding or credit cost?
Net interest margin (NIM) for the lending business stood at 8.23% in Q2 FY27, comparing with 7.95% in Q2 FY26 and 8.35% in Q1 FY27.
What changed operationally beyond the headline numbers?
Advanced the 'Shikhar' AI-powered transformation initiative focusing on customer onboarding automation, Gen AI voice bots for engagement, and data-driven underwriting.
What should the next disclosure help confirm?
Monitor the evolution of Gross Stage 3 and Net Stage 3 ratios across enterprise lending and asset finance portfolios.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality Trajectory: Monitor the evolution of Gross Stage 3 and Net Stage 3 ratios across enterprise lending and asset finance portfolios.
- 02
Margin and Cost Dynamics: Track net interest margins and operating expense ratios against evolving borrowing costs and digital transformation investments.
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