HDB Financial Services Q2 FY27 results: net profit up 34.2% to ₹780.20 crore, revenue up 10.1%

How did HDB Financial Services perform in Q2 FY27?

HDB Financial Services reported standalone revenue of ₹5,005 crore for Q2 FY27, up 10.1% from ₹4,545 crore in Q2 FY26 and 1.4% from ₹4,938 crore in Q1 FY27. The filing did not provide EBITDA or an EBITDA margin for the quarter. Profit before tax was ₹1,044 crore, while net profit was ₹780.20 crore and basic EPS was ₹9.39.

Against Q2 FY26, profit before tax rose 33.4% from ₹782.17 crore and net profit rose 34.2% from ₹581.41 crore. Basic EPS increased from ₹7.01. The profit margin rose from 12.8% to 15.6%, an increase of 2.8 percentage points. Compared with Q1 FY27, profit before tax fell 1.1%, net profit fell 0.6% and basic EPS fell 0.7% from ₹9.46.

The results were filed on a standalone basis for the quarter and half year ended 30 September 2026. The quarter’s total expenses were ₹3,962 crore, against ₹3,763 crore in Q2 FY26 and ₹3,883 crore in Q1 FY27. The company’s investor presentation separately reported net interest income of ₹2,534 crore and a net interest margin of 8.23%.

What changed in HDB Financial Services' costs and profit?

Total expenses rose 5.3% from ₹3,763 crore in Q2 FY26 to ₹3,962 crore, while revenue rose 10.1%. Employee cost increased 6.1% by ₹58.71 crore to ₹1,016 crore, finance costs rose 7.3% by ₹123.07 crore to ₹1,817 crore, depreciation increased 9.5% by ₹4.96 crore to ₹57.39 crore and other expenses rose 9.7% by ₹30.03 crore to ₹340.80 crore.

Other income was unchanged and there was no exceptional item in Q2 FY27. Tax expense rose 31.3% by ₹62.78 crore to ₹263.54 crore, while profit before tax increased 33.4% by ₹261.56 crore to ₹1,044 crore and net profit increased 34.2% by ₹198.79 crore to ₹780.20 crore.

Against Q1 FY27, total expenses rose 2.0% by ₹78.78 crore. Finance costs increased 3.6% by ₹63.85 crore and depreciation rose 4.7% by ₹2.59 crore, while employee cost fell 1.8% by ₹19.02 crore and other expenses fell 0.4% by ₹1.43 crore. Tax expense fell 2.4% by ₹6.36 crore, while net profit fell 0.6% by ₹4.99 crore.

How did the first half of FY27 go?

For H1 FY27, HDB Financial Services reported revenue of ₹9,943.18 crore, up 10.3% by ₹932.35 crore from ₹9,010.83 crore in H1 FY26. Profit before tax rose 38.6% by ₹584.06 crore to ₹2,098.83 crore, while net profit rose 36.2% by ₹416.08 crore to ₹1,565.39 crore.

Basic EPS for H1 FY27 was ₹18.85, compared with ₹14.14 in H1 FY26. The filing contained an unmodified limited review opinion on the unaudited results. The figures were presented on a standalone basis for the half year ended 30 September 2026.

What do the balance sheet and cash flow show?

Total assets were ₹130,777.02 crore at 30 September 2026, compared with ₹123,651.52 crore at 31 March 2026. Total equity was ₹22,153.16 crore, compared with ₹20,664.04 crore at the previous balance sheet date. Cash and cash equivalents were ₹1,632 crore, against ₹1,246.12 crore; borrowings were not reported in the supplied data.

H1 FY27 operating cash flow was negative ₹4,700.22 crore, compared with negative ₹3,814.47 crore in H1 FY26. Investing cash flow was negative ₹477.53 crore, against negative ₹962.59 crore, while financing cash flow was ₹5,563.63 crore, against ₹4,964.11 crore. Capital expenditure was ₹50.06 crore, compared with ₹41.71 crore.

How has HDB Financial Services done over the last 6 quarters?

Revenue rose in each of the last four reported quarters, from ₹4,545 crore in Q2 FY26 to ₹4,673 crore in Q3 FY26, ₹4,745 crore in Q4 FY26 and ₹4,938 crore in Q1 FY27, before reaching ₹5,005 crore in Q2 FY27. The lowest revenue in this sequence was ₹4,545 crore, and the highest was ₹5,005 crore. Revenue has increased year on year in each of the last two quarters.

Net profit rose from ₹581 crore in Q2 FY26 to ₹644 crore in Q3 FY26 and ₹751 crore in Q4 FY26, then edged down to ₹785 crore in Q1 FY27 and ₹780 crore in Q2 FY27. Profit after tax was higher year on year in each of the last two quarters. The supplied quarterly data did not include an EBITDA margin, so no margin peak or trough could be identified.

Which businesses drove the quarter?

The lending business reported revenue of ₹4,708.14 crore, up 11.4% from ₹4,225.09 crore in Q2 FY26. EBIT was ₹1,041.77 crore, compared with ₹768.26 crore in the year-ago quarter, and the reported EBIT margin was 22.1%.

BPO Services reported revenue of ₹297.18 crore, down 7.2% from ₹320.30 crore in Q2 FY26. EBIT fell to ₹17.94 crore from ₹28.79 crore, while the reported EBIT margin was 6.0%.

What else did the company announce?

The board approved the unaudited financial results for the quarter and half year ended 30 September 2026, which had been reviewed by the Audit Committee. The joint statutory auditors’ limited review report contained an unmodified opinion. The board also approved disclosure documents relating to secured non-convertible securities and utilisation of issue proceeds.

The board declared an interim dividend of Rs. 2.00 per equity share, or 20% of face value, for FY27. The record date is 23 October 2026. CARE Ratings Limited’s monitoring report said all IPO proceeds had been utilised appropriately in accordance with the offer document and recorded no material deviation; the IPO comprised an issue size of ₹12,500 crores, including fresh issue proceeds of Rs. 2,500 crore.

The board approved the appointment of Vinod Koyande as Company Secretary and Compliance Officer with effect from 31 October 2026, replacing Dipti Khandelwal. The filing described Koyande as a qualified Company Secretary with more than 15 years of experience in corporate governance, regulatory compliance, capital markets and secretarial functions.

What did HDB Financial Services' management say?

Management said the company would work to hold net interest margin in a narrow range near 8.2% over the next couple of quarters, with a long-term level of 8% or more despite the 25bps repo hike on 7 October 2026. The company expects annualised return on assets of 2.5% or more in the short-to-medium term and guided credit cost to 2.3% ±. The earnings presentation reported Q2 net interest margin of 8.23%.

Management said AUM growth had lagged and re-acceleration to the industry median of 17–18% was pushed to Q4 FY27, with the improvement dependent on fixing the used commercial vehicle business and scaling unsecured business loans. Disbursements were ₹18,522 crore, up 18.7% year on year, while gross loan book was ₹1,24,469 crore, up 11.7% year on year.

How did HDB Financial Services shares react?

After the filing appeared after market hours, the stock was down 1.2% after 5 minutes, 1.8% after 15 minutes and 2.0% after 30 minutes. It closed 7.9% below its pre-results close on the reaction day. By the next day’s close, it was 12.1% below that close, and by five sessions later, it was 13.9% below it.

The median move for other NBFC stocks was negative 0.2% on the reaction day, negative 0.2% by the next day’s close and negative 4.7% by five sessions. HDB Financial Services therefore underperformed the industry median by 7.7 percentage points on the reaction day, 11.9 percentage points by the next day and 9.2 percentage points after five sessions. Earlier reaction-day moves were negative 0.9% on 15 July 2026, positive 5.9% on 15 April 2026, positive 0.3% on 14 January 2026, negative 0.5% on 15 October 2025 and negative 3.0% on 15 July 2025.

How did other Non Banking Financial Company (NBFC) companies do?

Among 77 other Non Banking Financial Company companies that had filed for the quarter, the median revenue growth was 21.6%, compared with HDB Financial Services’ 10.1% growth. Of those peers, 25 grew more slowly than the company and 52 grew faster than the company. Fifty-six of the 85 peers compared on profit reported higher profit.