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Informist, Wednesday, Apr. 15, 2026

By Janwee Prajapati

MUMBAI - HDB Financial Services Ltd. is expected to report a substantial on-year rise in its net profit for the March quarter, driven by growth in disbursement and assets under management. Higher disbursements, along with lower credit costs, are likely to support the growth in assets under management and net interest income, according to analysts.

The company is expected to report a net profit of INR 7.23 billion for the March quarter, up 36% on year and 12% on quarter, according to the average of estimates from six brokerages. The highest estimate for net profit is INR 7.58 billion from Motilal Oswal Financial Services Ltd. and the lowest estimate is INR 6.73 billion from Emkay Global Financial Services Ltd.

The company is expected to report net interest income of INR 23.53 billion for the March quarter, up over 19% on year and up nearly 3% on quarter, according to the average of estimates. The highest estimate for net interest income is INR 23.74 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 23.28 billion from ICICI Securities Ltd.

"HDB is shifting its mix towards higher-yielding enterprise, MSME (micro, small and medium enterprises), and commercial vehicle loans while preserving the secured-asset character of its book," Nirmal Bang Equities Pvt. Ltd. said. "Deep sub-district penetration beyond Tier-3 towns provides insulation through geographic diversification and rural credit demand." The company's disbursements are expected to rise 10% on year and assets under management are expected to rise 11% on year, according to Motilal Oswal.

The company's net interest income is likely to grow 20% on year, supported by a 58-basis-point expansion in net interest margin, Nomura said in its report. The company is likely to report a 12% on-year growth in its gross loans. Credit cost is likely to decline 20 bps on quarter to 2.3%, according to Motilal Oswal.

"HDB Financial Services Ltd. is expected to deliver 12% y-y (year-on-year) gross loan growth, in line with the 9M (nine month) trend, and will remain the slowest among diversified lenders," Nomura said. "We do not expect any adverse trends in cost of funds or credit cost...in 4Q26F (March quarter)." The outlook on disbursements, loan growth, and credit costs are key factors to consider.

For the December quarter, the company had reported net profit of INR 6.44 billion, up over 36% on year. The lender's total revenue from operations had risen nearly 13% on year to INR 46.74 billion. The net interest income was INR 22.85 billion, up around 4% from the previous quarter and around 22% on year.

Of the six brokerage reports on the company available with Informist, three have a "buy" recommendation on the stock with an average target price of INR 863 and two have a "hold" recommendation with an average target price of INR 788. One brokerage has a "sell" recommendation on the stock. The company will report its earnings for the March quarter Wednesday.

At 1147 IST, shares of HDB Financial Services traded at INR 635.50 per share on the National Stock Exchange, up over 3% from the previous close. Since reporting its December quarter earnings on Jan. 14, the company's shares have fallen almost 17%.

The following are the Jan-Mar earnings estimates for HDB Financial Services from six brokerages in descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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