HDB Financial vs Bajaj Finance: Comparing Growth, Profits, and Performance Trends

A new face is challenging an old giant. HDB Financial, fresh from one of the year’s biggest IPOs, has entered the NBFC battlefield against Bajaj Finance, the long-time industry leader. The big question: Can the newcomer steal market share, or will the veteran maintain its dominance?

HDB Financial vs Bajaj Finance: Comparing Company Profiles

• HDB Financial: Started in 2007, now has 1,700 branches, 19 million customers, and a market cap of ₹63,000 crore. Offers loans across asset finance, mortgages, consumer durables, gold, and even BPO services.
   
• Bajaj Finance: A giant with 100 million customers, 4,263 branches, and a ₹5.33 lakh crore market cap. Operates across retail, SME, rural, and commercial lending, and also runs housing finance and securities subsidiaries.

Financial Performance

• HDB Financial: IPO raised ₹12,500 crore with 16.7x subscription. Q1FY26 profit fell 2% YoY to ₹568 crore, and margins narrowed.
• Bajaj Finance: Q1FY26 profit jumped 30.5% YoY to ₹2,789 crore, showing strong growth momentum.

Net Interest Margins (NIMs)

• HDB Financial: Reported NIM of 7.7% in Q1FY26, up slightly from the previous quarter.
• Bajaj Finance: Standalone NIM stood at 5.29%. Return on average assets under finance matched the NIM at 5.29%.

Asset Quality and NPAs

• HDB Financial: Gross NPAs rose to 2.56% in Q1FY26 (vs 1.93% last year). Net NPAs at 1.11%. Higher stress in commercial vehicle and unsecured loans.
• Bajaj Finance: Gross NPAs at 1.03%, net NPAs at 0.50%. Stress mainly in MSME, auto finance, and rural unsecured loans, though the housing subsidiary remains stable.

Loan Growth

• HDB Financial: Gross loan book up 14.3% YoY to ₹1.09 lakh crore. Disbursements dipped 8% YoY.
• Bajaj Finance: Loan book grew 25% YoY to ₹4.41 lakh crore. Added 13.5 million new loans and expanded customer base to 106.5 million. Subsidiaries also saw strong growth.

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HDB Financial vs Bajaj Finance: Share Price Performance

• HDB Financial: HDB Financial Services share price was trading at ₹778.85, up by ₹18.75 or 2.47%, as of 12:34 PM on August 18, 2025. Listed in July at a 13% premium, but is now down 9% since its debut. Recent weekly gain of 1%.
• Bajaj Finance: Bajaj Finance share price was trading at ₹915.80 on August 18, 2025, at 1:05 PM IST, up ₹54.35 or 6.31% for the day. Stock fell 6% in the past month but is up 33% over the past year and 157% over five years, reflecting long-term strength.

Conclusion

HDB Financial has made a strong start but is still finding its footing, with rising NPAs and slowing disbursements a concern. Bajaj Finance, despite near-term pressures, continues to show consistent profitability, growth, and resilience. For investors, Bajaj Finance remains the safer long-term NBFC bet, while HDB could be a higher-risk, higher-reward play.

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