HDB Financial Q4FY26: Profit Jumps 41% To ₹751 Crore, Share Price Rises Over 7%

HDB Financial Services reported a solid March quarter, with growth coming from both higher income and better margins, even though there was a slight rise in stress on the asset quality side.

For Q4FY26, the company posted a profit after tax (PAT) of ₹751 crore, up from ₹531 crore a year ago, which is a 41% increase. Profit before tax also moved up sharply to ₹1,011 crore, compared to ₹704 crore last year. The board has announced a dividend of ₹2 per share.

After the Q4 results, HDB Financial Services shares surged by over 7% to ₹690.55 on 16 April 2026 at 11:58 am.

Key Q4 Numbers At A Glance

• Net interest income (NII) reached ₹2,399 crore, up 21.6% on a year-on-year (YoY) basis

• Net total income was ₹3,063 crore, up 17.1% YoY

• Pre-provisioning operating profit (PPOP) increased 26.7% and stood at ₹1,696 crore

• Loan losses and provisions saw an 8% rise to reach ₹685 crore

Growth in core income supported profitability, but provisions rose at a slower pace.

Other Highlights

Loan Growth and Improved Margins

The company continued to grow its lending book at a steady pace. Its gross loan book rose to ₹1,18,493 crore, up 10.9%, while assets under management also grew to ₹1,18,733 crore, up 10.7%. At the same time, margins improved, with net interest margin moving up to 8.2% from 7.6% last year. This shows the company is not just growing, but also earning better on its loans.

Asset Quality

Asset quality is still largely stable, but there are early signs of stress. Gross Stage 3 loans edged up to 2.44% from 2.26%, and net Stage 3 loans rose to 1.09% from 0.99%. The provision coverage ratio stayed almost flat at around 55%. So while things are under control for now, there is a small increase in stressed loans.

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Balanced Loan Mix

The company’s loan book remains well spread out across segments. Enterprise lending and asset finance each make up about 38% of the portfolio, while consumer finance contributes 24%. Since almost 74% of the loan book is secured, it has helped reduce risk.

Sources:

HDBFS Press Release

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