Synopsis:- Shares jumped 12% intraday, reflecting strong momentum supported by 22% NII growth and expanding margins. Loan book rose ~11% to ₹1.18 lakh crore, while NPAs edged up to 2.44%. Brokerages remain cautious, with a ₹720 target, awaiting consistent execution and stability.
The shares of the prominent Financial Services company gained 12 percent in today’s trading session from the intraday high after the company reported strong growth in Q4FY26.
With a market capitalisation of Rs 57,433.73 crore, the shares of HDB Financial Services Ltd were trading at Rs 691.70 per share, increasing around 7 percent as compared to the previous closing price of Rs 644.20 apiece.
Q4FY26 Highlights
HDB Financial Services Ltd reported strong quarterly performance, with net interest income rising 22% YoY from ₹1,973 crore to ₹2,399 crore and 5% QoQ from ₹2,285 crore. Meanwhile, profits surged 41% YoY from ₹531 crore to ₹751 crore and 17% QoQ, reflecting improved lending momentum and operational efficiency.
Furthermore, the company maintained steady full-year growth, with net interest income increasing 11% from ₹1,06,878 crore in March 2025 to ₹1,18,493 crore in March 2026. Net profit also grew 17% from ₹2,176 crore to ₹2,544 crore, indicating consistent earnings expansion supported by stable margins and controlled costs.
Pre-provisioning profit jumped 26.7% to ₹1,696 crore. Provisions grew modestly by 8% to ₹685 crore, indicating controlled asset quality despite higher lending activity.
The company saw steady balance sheet growth, with AUM rising 10.7% to ₹1,18,733 crore and the loan book up 10.9% to ₹1,18,493 crore. However, asset quality slightly weakened, with gross NPAs increasing to 2.44% and net NPAs to 1.09%. Provision coverage remained stable at 55.53%, indicating adequate buffers despite marginal stress.
Brokerage Coverage
Motilal Oswal Financial Services believes that the current valuation of HDB Financial Services Ltd already reflects its medium-term growth prospects. Hence, the brokerage is closely monitoring key factors such as execution in loan growth, performance across cycles, and improvement in return ratios for any potential re-rating.
The brokerage continues to maintain a “neutral” stance on the company, emphasizing that sustained progress in these areas is essential for upside. However, it has marginally raised its target price to ₹720 from ₹650, indicating cautious optimism while awaiting clearer signs of consistent performance improvement.
HDB Financial Services Ltd is a leading non-banking financial company and a subsidiary of HDFC Bank, offering a wide range of lending products across retail and commercial segments. The company focuses on diversified loan portfolios, strong risk management, and expanding customer reach, positioning itself as a key player in India’s growing credit market.
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