HDB Financial Services shares decline over 2%, fall below IPO price; Here is why

Shares of HDB Financial Services dropped below its initial public offering (IPO) price of ₹740 on the National Stock Exchange (NSE) on Monday, September 29. The stock fell as much as 2.22% to hit an intraday low of ₹739 on the NSE. On the BSE, HDB Financial Services shares plunged as much as 2.23%.

HDB Financial Services shares made stock market in July. The stock opened for trading at ₹835, marking an upside of 2.83% premium from the issue price. The ₹12,500-crore initial public offer of HDB Financial Services Ltd was subscribed 16.69 times.

Before the IPO, HDB Financial had collected ₹3,369 crore from anchor investors.

HDB Financial Services Q1 earnings

HDB Financial Services net interest income jumped 18% YoY to ₹2,092 crore as against ₹1,768 crore in the Q1FY25. This was largely due to a 17.3% YoY jump in the interest income at ₹3,831 crore as compared to ₹3,264 crore in the Q1FY25.

The net interest margin for the company remained intact at 7.6% in Q1FY26 as compared to 7.7% in the previous year's similar quarter.

The net profit for the quarter dropped by 2.4% YoY to ₹567 crore as against ₹581 crore in the previous year’s similar quarter. This was primarily due to higher coverage for the stage 3 loans at 56.7% vs the previous quarter at 55.9%.

The GNPA for the company stood at 2.56% for Q1FY26 as compared to 1.93% in Q1FY25 and 2,26% in Q4FY25. In addition, the NNPA for the quarter also jumped to 1.11% vs 0.77% in the previous year's similar quarter.

The company’s asset under management (AUM) stood at ₹ 1,09,690 crore for Q1FY25 compared to ₹ 95,643 crore in the same period last year, up by 14.7% YoY. Similarly, the gross loans for the quarter also jumped 14.3% YoY to ₹1,09,342 crore as of Q1FY25, as against ₹95,629 crore.

As of 1:12 pm, HDB Financial Services shares traded 1.65% lower at ₹743.35, underperforming the NIFTY50 index which was trading on a flat note.