More Stories

Informist, Wednesday, Apr. 15, 2026

By Meera Nair and Eshitva Prakash

MUMBAI – HDB Financial Services Ltd. Wednesday reported a sharp increase in its net profit for the March quarter, which jumped 41% year-on-year to INR 7.51 billion, higher than the analysts' projection of INR 7.23 billion. The company's net interest income rose nearly 22% on year to INR 23.99 billion, slightly higher than the Street's projections of INR 23.53 billion.

This rise in the net profit was largely because of the revenue rising relatively more than its expenses. The company's total expenses for the period rose just 5% on year to INR 37.34 billion. Meanwhile, its revenue saw healthy growth, with its top line rising over 11% on year to INR 47.45 billion. An improvement in the asset quality and higher loan growth also supported the bottom line. 

Other financial metrics also saw signs of improvement, with the net interest margin for the March quarter rising 14 basis points from the prior quarter to 8.23%. On a year-ago basis, this implies a 68-bps improvement. The company's gross loan book rose nearly 11% on year and was at INR 1.18 trillion as of Mar. 31. Around 74% of its gross loan book comprises secured loans, the company said. Loan disbursements for the quarter ended March were INR 199.22 billion, up over 11% sequentially and nearly 13% on year. 

The company's asset quality saw signs of improvement, with its gross stage 3 ratio improving to 2.44% for the March quarter from 2.81% in the previous quarter. The lender's pre-provisioning operating profit rose almost 27% on year and almost 8% sequentially to INR 16.75 billion. Its credit cost for the quarter ended March was INR 6.85 billion, down almost 4% from INR 7.12 billion in the previous quarter. Credit cost for 2025-26 (Apr-Mar) was INR 28.15 billion, up almost 25% from INR 21.13 billion a year ago. From its total borrowings, 45% of the borrowings come from bank loans, 31% from non-convertible debentures, and the rest from a mix of other instruments. 

The lender's disbursements for the March quarter were INR 199.22 billion, up by over 11% sequentially and almost 13% on year. The company's cost-to-income ratio for its lending business was 39.5%, down from 41.6% in the previous quarter and down from 42.9% in the year-ago quarter. The ratio was at 41.1% for the year ended Mar. 31, compared with 42.8% in the previous financial year. 

The company will pay INR 2 per equity share as a final dividend. The company has approved a fresh borrowing of INR 8.50 billion by issuing debt securities on a private placement basis in one or more tranches. On Wednesday, shares of the company ended almost 5% higher at INR 644.30 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.