HDB Financial Services Q1 Net Profit at ₹567.7 Crore; Total Income Rises 15% YoY
By Shishta Dutta | Published at: Jul 16, 2025 12:36 PM IST
Mumbai, July 16, 2025 – HDB Financial Services Ltd (NSE: HDBFS, BSE: 544429) reported a standalone net profit of ₹567.7 crore for the quarter ended June 30, 2025 (Q1 FY26), compared to ₹581.7 crore in the corresponding quarter last year. Total income from operations rose 15% year-on-year to ₹4,465.4 crore from ₹3,883.8 crore in Q1 FY25.
The company successfully closed its Initial Public Offering (IPO) on June 30, 2025, resulting in a total equity capital inflow of ₹6,134 crore, including ₹5,796.66 crore of securities premium after deducting ₹41.38 crore as offer-related expenses.
Quarterly Financial Performance
- Interest Income increased to ₹3,831.5 crore in Q1 FY26 from ₹3,623.3 crore in Q4 FY25, marking a 5.7% QoQ growth.
- Revenue from the Sale of Services remained steady at ₹303.9 crore, compared to ₹303.3 crore in the previous quarter, showing a marginal 0.2% QoQ increase.
- Other Financial Charges declined to ₹305.8 crore from ₹332.5 crore, registering an 8% QoQ decrease.
- Net Gain on Fair Value Changes surged to ₹24.9 crore from ₹8.0 crore, reflecting a 211.3% QoQ increase.
- Total Income from Operations rose to ₹4,465.4 crore from ₹4,266.1 crore, indicating a 4.7% QoQ growth.
- Total Expenses increased to ₹3,732.9 crore from ₹3,561.9 crore, showing a 4.8% QoQ rise.
- Profit Before Tax grew to ₹732.5 crore from ₹704.2 crore, resulting in a 4% QoQ increase.
- Net Profit improved to ₹567.7 crore from ₹530.9 crore, showing a 6.9% QoQ growth.
- Total Comprehensive Income increased to ₹485.0 crore from ₹460.2 crore, up 5.4% QoQ.
- Basic Earnings Per Share (EPS) rose to ₹7.13 from ₹6.67 in the previous quarter, recording a 6.9% QoQ increase.
| Particulars | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|---|
| Interest Income | 3,831.5 | 3,623.3 | 3,264.6 | 13,835.8 |
| Sale of Services | 303.9 | 303.3 | 313.0 | 1,216.7 |
| Other Financial Charges | 305.8 | 332.5 | 286.2 | 1,192.4 |
| Net Gain on Fair Value Changes | 24.9 | 8.0 | 20.2 | 54.9 |
| Total Income from Operations | 4,465.4 | 4,266.1 | 3,883.8 | 16,300.3 |
| Total Expenses | 3,732.9 | 3,561.9 | 3,100.1 | 13,372.5 |
| Profit Before Tax | 732.5 | 704.2 | 783.1 | 2,927.8 |
| Net Profit | 567.7 | 530.9 | 581.7 | 2,175.9 |
| Total Comprehensive Income | 485.0 | 460.2 | 577.8 | 2,128.0 |
| Basic Earnings Per Share (EPS) | ₹7.13 | ₹6.67 | ₹7.33 | ₹27.40 |
Capital Structure Update Post-IPO
HDB Financial Services raised capital via its IPO on June 30, 2025, issuing 16,89,18,917 equity shares of face value ₹10 each at an issue price of ₹740 per share:
- Fresh Issue: 3,37,83,782 shares
- Offer for Sale: 13,51,35,135 shares
- Gross Proceeds from Fresh Issue: ₹2,498.98 Cr
- Securities Premium (net of expenses): ₹5,796.66 Cr
- Revised Share Capital: ₹829.57 Cr (82,95,66,727 shares)
- Shares Listed On: NSE and BSE on July 2, 2025
Key Ratios and Capital Adequacy
| Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 |
|---|---|---|---|
| Net Worth (₹ Cr) | ₹17,765.9 | ₹14,936.5 | ₹13,298.0 |
| Debt-to-Equity Ratio | 5.15x | 5.85x | 5.91x |
| Capital Adequacy Ratio (CAR) | 20.18% | 19.22% | 18.84% |
| Gross Stage 3 Ratio | 2.56% | 2.26% | 1.93% |
| Stage 3 Provision Coverage | 56.70% | 55.95% | 60.24% |
| Liquidity Coverage Ratio | 151% | 161% | 162% |
Segment-Wise Performance
| Segment | Revenue (₹ Cr) | PBT (₹ Cr) |
|---|---|---|
| Lending Business | 4,161.5 | 733.6 |
| BPO Services | 303.9 | 13.9 |
| Unallocated | 0 | (15.0) |
Total assets as of June 30, 2025 stood at ₹1,25,644.1 crore, up from ₹1,08,663.3 crore in March 2025.
Security Cover Details (Regulation 54(3))
As per the Security Cover Certificate:
- Secured Debt Outstanding: ₹3,81,545 lakh
- Exclusive Security Book Value: ₹4,09,295 lakh
- Security Cover (Book Value): 1.07
- Asset Cover for Unsecured Debt: 2.52
Utilisation of Issue Proceeds (Reg. 52(7), 52(7A))
During Q1 FY26, HDB issued the following non-convertible securities:
| ISIN | Type | Date | Amount Raised (₹ Cr) | Deviation |
|---|---|---|---|---|
| INE756I07EJ2 | NCD | 24-Apr-25 | 1,000 | No |
| INE756I07FC4 | NCD | 13-May-25 | 300 | No |
| INE756I07FG5 | NCD | 26-May-25 | 1,500 | No |
| INE756I07FF7 | NCD | 26-May-25 | 100 | No |
| INE756I07EX3 | NCD | 26-May-25 | 200 | No |
| INE756I08B06 | Sub Debt | 23-Jun-25 | 400 | No |
All proceeds were fully utilised for the intended purposes as disclosed in the offer documents with no variation or deviation.
HDB Financial Services Stock Performance
HDB Financial Services shares are trading at ₹815.05 or down ₹26.20 on July 16, 2025, at 11:43 AM IST. This is a 3.11% dip in the National Stock Exchange. HDB Financial Services shares have declined 3.08% over the last year and 3.36% in the previous five days.
About HDB Financial Services
HDB Financial Services Ltd is a listed Non-Banking Financial Company (NBFC–Upper Layer) regulated by the Reserve Bank of India. It offers a diversified portfolio of secured and unsecured loans, as well as BPO services. The company’s equity shares are listed on the NSE and the BSE.
REF: https://nsearchives.nseindia.com/corporate/HDBF_15072025165449_UnauditedFinancialResults.pdf
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