HDB Financial Services Q3 FY26 Earnings Results: Profit After Tax Rises 36% to ₹644 Crore

HDB Financial Services Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, after its Board of Directors met in Mumbai on January 14, 2026.

Strong Growth in Loan Book and AUM

The company continued to see steady growth in its lending business during the December quarter.

• Assets under Management (AUM): ₹1,14,853 crore, up 12% YoY
• Total gross loans: ₹1,14,577 crore, up 12.2% YoY

This growth reflects healthy demand across enterprise, asset finance, and consumer lending segments.

Income and Profit Performance

HDB Financial Services reported strong income growth in Q3 FY26.

• Net interest income (NII): ₹2,285 crore, up 22.1% YoY
• Net total income: ₹2,970 crore, up 18.8% YoY
• Pre-provisioning operating profit: ₹1,573 crore, up 23.2% YoY

Employee benefit expenses included a ₹61 crore provision related to new labour codes, mainly linked to the lending business.

Profit Rises Sharply in Q3

• Profit before tax (PBT): ₹860 crore, up 34.3% YoY
• Profit after tax (PAT): ₹644 crore, up 36.3% YoY

For the nine months ended December 2025, PAT rose to ₹1,793 crore, compared with ₹1,645 crore in the same period last year, marking a 9% increase.

Asset Quality and Provisions

Asset quality showed some pressure compared with last year.

• Gross Stage 3 loans: 2.81% (vs 2.25% a year ago)
• Net Stage 3 loans: 1.25% (vs 0.90% a year ago)
• Provision coverage on Stage 3 assets: 55.59% (vs 60.02% last year)

Loan loss provisions for the quarter stood at ₹712 crore, up 12% YoY.

Key Operating Metrics

• Net interest margin: Improved to 8.1%
• Credit cost: Stable at 2.5% of gross loans
• Return on average assets: Rose to 2.2% (annualised)
• Earnings per share (Q3): ₹7.8
• Book value per share: ₹239

The loan mix remained well diversified, with 74% of loans secured.

About HDB Financial Services

HDB Financial Services Limited is a non-deposit taking NBFC and a subsidiary of HDFC Bank. Established in 2007, it offers loans across enterprise lending, asset finance, and consumer finance.

As of December 31, 2025, the company operated through 1,744 branches across 1,165 cities and towns and is classified as an upper-layer NBFC by the RBI.

HDB Financial Services Share Price Movement

HDB Financial Services share price (NSE: HDBFS) closed at ₹763.45 on January 14, slipping 0.59% or ₹4.55 for the day. The stock opened at ₹762.00, touched an intraday high of ₹768.95, and a low of ₹758.50. Over the past year, the stock has moved between a 52-week high of ₹891.90 and a 52-week low of ₹705.05. HDB Financial Services offers a dividend yield of 0.26%, with a quarterly dividend of ₹0.50 per share.

Conclusion

HDB Financial Services delivered a strong Q3 FY26 performance with healthy growth in profits, margins, and loan book. While asset quality saw some increase in stress, stable credit costs and improved returns highlight the company’s operational strength and growth potential.

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