Conference Call with HDB Financial Services Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Finance company HDB Financial Services announced Q1FY26 results Assets under Management (AUM) reached Rs 1,09,690 crore, expanding 14.7 % YoY from Rs 95,643 crore. Total Gross Loans climbed to Rs 1,09,342 crore, a YoY rise of 14.3 %. Revenue Generation: Net Interest Income (NII) stood at Rs 2,092 crore, up 18.3 % versus Rs 1,768 crore in Q1FY25. Total Net Income (NII plus other income) increased 14.2 % YoY to Rs 2,726 crore. Operating Performance: Pre-provisioning Operating Profit came in at Rs 1,402 crore, registering 17.2 % growth over Rs 1,196 crore during Q1FY25. Loan-loss provisions rose to Rs 670 crore from Rs 412 crore, reflecting higher credit costs. Profitability: Profit Before Tax (PBT) was Rs 733 crore versus Rs 784 crore a year earlier, pressured by elevated provisions. Profit After Tax (PAT) marginally declined to Rs 568 crore from Rs 582 crore; return on average assets moderated to 1.9 % (annualised) from 2.4 %. Asset Quality: Gross Stage-3 assets increased to 2.56 % of Gross Loans (1.93 % in Q1FY25). Net Stage-3 assets stood at 1.11 % (0.77 % a year ago). Provision coverage on Stage-3 assets was 56.70 % compared with 60.24 % in Q1FY25. Credit-cost & Margin Metrics: Credit cost rose to 2.5 % of Gross Loans (1.8 % in Q1FY25). Net Interest Margin remained healthy at 7.7 %, marginally higher than 7.6 % last year. Portfolio Composition (mix unchanged YoY) Enterprise Lending: 39 % of Gross Loans Asset Finance: 38 % Consumer Finance: 23 % Secured loans constitute 73 % of the book. Earnings per Share for the quarter: Rs 7.1 (vs Rs 7.3 in Q1FY25). Book Value per Share: Rs 225 (Rs 180 a year earlier). Result PDF