HDB Financial Services to announce Q1 results today; all you need to know

HDB Financial Services shares traded 0.2% higher on Tuesday at ₹845 apiece on the NSE ahead of its Q1FY26 results. The recently listed IPO is set to announce its first quarterly results today.

The shares got listed on July 2 with a 12.8% premium at ₹835 apiece against the issue price of ₹740 apiece. After listing, shares made a new high of ₹891.9 apiece. However, the shares witnessed selling pressure and currently trade near the listing price of ₹835.

The IPO was oversubscribed by 17.6 times, with qualified institutional investors bidding over 58 times. The retail category was oversubscribed by 1.5 times and NII by 10 times.

The company was seventh seventh-largest leading, diversified retail-focused non-banking financial company as of 31st March 2024. It lends into three business verticals, including Enterprise lending, Asset Finance and Consumer Finance. It is also the second largest and the third fastest growing customer franchise amongst the NBFC peers. According to the CRISIL report, they have served 19.2 million customers as of FY25, which grew at a compounded rate of 25.4% from FY23 to FY25.

FY25 results

In FY25, the company’s interest income stood at ₹13,835 crore, up by 24%YoY from ₹11,156 crore in FY24. The net interest income for the NBFC jumped 18% YoY to ₹8,693 crore as compared to ₹7,357 crore in the previous year. Lastly, the net profit for FY25 remained subdued at ₹2,175 crore as compared to ₹2,460 crore in the previous year’s similar quarter.

As of FY25, the total gross loans stood at ₹1,06,877 crore as compared to ₹90,217 crore, up by 18.5%. The secured lending remains strong at 73% of the overall loans vs 18.4% from unsecured loans. In terms of asset quality, the GNPA stood higher than the previous year at 2.26% vs 1.9%. The NNPA also deteriorated from 0.66% to 0.99% in FY25.

What to expect from Q1FY26 results

In Q1FY26, the loan book growth and asset quality will remain in key focus as the NBFC’s asset quality deteriorated from 1.9% GNPA to 2.2%. In addition, the margins and overall yields will remain in focus as the majority of the lending portfolio continues to remain in the secured category as compared to its peers, which have a lower secured lending profile and high margins on the business.