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