HDB Financial Services Q1 FY26 Results:14.7% AUM Growth, Profit Falls To Rs 568 Cr
HDB Financial Services, a subsidiary of HDFC Bank, reported a 14.7% YoY growth in AUM to Rs 1,09,690 crore as of June 30, 2025.
HDB Financial Q1FY26 Results: HDB Financial Services Limited (HDBFS), a subsidiary of HDFC Bank, reported a 14.7% year-on-year (YoY) growth in Assets Under Management (AUM), reaching rs 1,09,690 crore as of June 30, 2025, compared to Rs 95,643 crore a year ago. The company's board approved the unaudited financial results for the quarter ended June 30, 2025, at its meeting held in Mumbai on Tuesday.
This is the first quarterly earnings of HDB Financial Services post the launch of the IPO to raise Rs 12,500 crore from the primary market.
Shares of HDB Financial Services Limited fell 0.28 per cent on Tuesday to settle at Rs 841 per share.
Gross loans rose by 14.3% YoY to Rs 1,09,342 crore, while net interest income grew 18.3% to Rs 2,092 crore. Net total income came in at Rs 2,726 crore, up 14.2% from the same period last year. The company's pre-provisioning operating profit increased 17.2% to Rs 1,402 crore, but rising provisions impacted overall profitability.
Loan losses and provisions surged to Rs 670 crore, up from Rs 412 crore in Q1FY25, resulting in a slight decline in profit. Profit before tax fell to Rs 733 crore from Rs 784 crore, while profit after tax stood at Rs 568 crore, down from Rs 582 crore in the same quarter last year.
Asset quality weakened with Gross Stage 3 loans rising to 2.56%, compared to 1.93% a year ago. Net Stage 3 loans stood at 1.11%, up from 0.77% in June 2024. The provisioning coverage ratio declined to 56.70% from 60.24%.
HDB Financial Services Limited (HDBFS) is a non-deposit taking non-banking finance company ('NBFC') offering wide range of loan products to individuals, emerging businesses and micro enterprises. Established in 2007, as a subsidiary of HDFC Bank Limited, HDBFS is categorized as an upper layer NBFC by the RBI. HDBFS offers a large portfolio of lending products that cater to a growing and diverse customer base through a wide omni-channel distribution network. Its lending products are offered through the three business verticals: Enterprise Lending, Asset Finance and Consumer Finance. As of June 30, 2025, the Company's distribution network spans 1,771 branches across 1,166 cities/ towns.
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July 15, 2025, 18:06 IST
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