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Informist, Monday, Jan. 12, 2026

By Reshma Ravi

MUMBAI - HDB Financial Services Ltd. is expected to report a substantial on-year rise in its net profit for the December quarter, driven by growth in disbursement and assets under management. Higher disbursements, easing stress in select loan segments, and improving yields 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 6.46 billion for the December quarter, up 37% on year and 11% on quarter, according to the average of estimates from four brokerages. The highest estimate for net profit is INR 6.58 billion from Motilal Oswal Financial Services Ltd., while the lowest estimate is INR 6.35 billion from Nirmal Bang Equities Pvt. Ltd.

The company is expected to report a net interest income of INR 24.15 billion for the December quarter, up 10% on quarter and 29% on year, according to the average of estimates. The highest estimate for net interest income is INR 29.80 billion from Emkay Global Financial Services Ltd., while the lowest estimate is INR 21.16 billion from Nirmal Bang Equities.

"We expect HDB FS (HDB Financial Services) to report a better quarter in terms of disbursement and AUM growth on account of reducing stress in the micro and USL loan segments, along with improving sales in the CV segment," Emkay Global said. The company's disbursements are expected to rise 16% on year, leading to a 15% on-year rise in assets under management.

The company's net interest margins and fee income are expected to improve marginally, helped by some benefit from rate cuts and marginally improving yields led by strong disbursement in the high-yield segment. However, operating expenses are expected to remain elevated, with core operating costs estimated at 3.8% of assets under management, resulting in a pre-provision operating profit of 16 billion, up 5% sequentially.

Meanwhile, Motilal Oswal expects credit costs will likely decline 25 basis points on quarter to 2.45% from to 2.70% in the previous quarter. Emkay Global expects credit cost to fall even more. "Credit cost is expected to moderate sequentially to ~2.6%, while GS3 and NS3 (gross stage 3 and net stage 3 assets) are expected to be broadly stable," Emkay Global said.

In the September quarter, the company had reported a net profit of INR 5.81 billion, down 2% on year. The net profit fell as the company's total expenses rose over 17% on year to INR 37.63 billion. The net interest income of HDB Financial Services for the September quarter was INR 21.92 billion, up around 5% from the previous quarter and around 20% on year.

Of the four brokerage reports on the company available with Informist, two have a "buy" recommendation on the stock, while one has a "hold" recommendation and one has a "sell" recommendation on the stock. The company will report its earnings for the December quarter on Wednesday.

At 1310 IST, shares of HDB Financial Services were at INR 762.25 on the National Stock Exchange, up almost 2% from the previous close. Since reporting its September quarter earnings on Oct. 15, the company's shares have risen over 3%.

The following are the Oct-Dec earnings estimates for HDB Financial Services from four brokerages in descending order of the estimate of net profit in INR million:

End

US$1 = INR 90.19

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

Edited by Avishek Dutta

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