HDB Financial Services Q4 FY26 results: net profit ₹750.69 crore

How did HDB Financial Services perform in Q4 FY26?

HDB Financial Services reported standalone revenue of ₹4,745 crore for Q4 FY26, compared with ₹4,673 crore in Q3 FY26. Profit before tax rose 17.5% to ₹1,011 crore from ₹860.31 crore, while profit after tax increased 16.6% to ₹750.69 crore from ₹643.93 crore. Basic EPS was ₹9.04, up 16.5% from ₹7.76, and the profit margin increased 2.0 percentage points to 15.8%.

Total expenses fell 2.1% to ₹3,734 crore from ₹3,813 crore in Q3 FY26. Employee cost decreased 5.3% to ₹970.54 crore and finance costs declined 1.3% to ₹1,682 crore, while depreciation rose 6.0% to ₹54.27 crore and other expenses increased 6.8% to ₹342.27 crore. The company reported no exceptional item, but did not provide EBITDA, EBITDA margin or a year-ago quarterly comparison.

What do the balance sheet and cash flow show?

Total assets rose to ₹123,651.52 crore at 31 March 2026 from ₹114,774.03 crore at 30 September 2025, while total equity increased to ₹20,664.04 crore from ₹19,338.2 crore. Cash rose to ₹1,246.12 crore from ₹1,137.51 crore, and the filing did not provide a borrowings figure for either balance-sheet date.

For FY26, operating cash flow was negative ₹8,605.7 crore, investing cash flow was negative ₹1,772.09 crore and financing cash flow was positive ₹10,673.41 crore. Capital expenditure was ₹143.61 crore. No comparison with a previous year’s cash flow was provided, and the company later revised the March 31, 2025 cash-flow footnote, changing demand drafts on hand from 352 to 56 and the total from 9,800 to 9,504.

Which businesses drove the quarter?

Lending Business reported revenue of ₹4,451.88 crore and EBIT of ₹1,004.84 crore for Q4 FY26, with an EBIT margin of 22.6%. BPO Services reported revenue of ₹293.53 crore and EBIT of ₹20.63 crore, with an EBIT margin of 7.0%. The supplied filing data did not include the year-ago revenue, EBIT or growth figures for either segment.

What else did the company announce?

The board approved the audited standalone financial results for the quarter and year ended 31 March 2026, following review by the Audit Committee. The joint statutory auditors issued an unmodified opinion, and the company also filed the security cover certificate, statement of utilisation of issue proceeds and statement of deviations.

The board approved borrowing through debt securities by private placement of up to ₹32,824.72 crore, comprising renewal of ₹31,974.72 crore and fresh approval of ₹850 crore, subject to shareholder approval. It recommended a final dividend of ₹2 per equity share of ₹10 face value for FY26, also subject to shareholder approval; the same-day filings did not announce appointments or an equity fund raise.

What did HDB Financial Services' management say?

Management maintained medium-term growth guidance of nominal GDP plus 6% to 7% CAGR over three years and said disbursement momentum from H2 FY26 was expected to continue into FY27. It expects operating expense to gross loan book to be around 3.7% in FY27, while continuing investment in AI and technology initiatives. Management also maintained a credit-cost target of 2.3% plus or minus and said 8%+ net interest margin was a floor, with the current 8.2% level described as non-negotiable.

G Ramesh, MD and CEO, said Q4 disbursements were ₹19,922 crore, up 11.2% from Q3 FY26, while Enterprise Lending disbursements grew 27.9% sequentially. He said Gross Stage 3 improved to 2.44% from 2.81% in Q3 FY26, and that the customer franchise expanded to 22.9 million. Jaykumar Shah, CFO, said 8%+ net interest margin was a non-negotiable in the company’s two-, three- and five-year plans.

Management identified the West Asia conflict, possible El Niño-related disruption, second- or third-order effects on MSME clusters and market volatility in borrowing costs as risks. Management said no material disruption had been seen in March or April, and collections in MSME clusters remained intact. On technology, management said DIY disbursements were about 2.2x in FY26 and bot-based collection intervention for more than 50% of customers needing a nudge improved collection efficiency by about 25 basis points in early buckets.

How did HDB Financial Services shares react?

After the filing, the stock fell 2.6% within five minutes, 3.7% within 15 minutes and 3.6% within 30 minutes from the price when the filing appeared. On the reaction day, it closed 5.9% above its pre-results close of ₹646.55; by the next day’s close it was up 5.0% from that close, and by five sessions it was up 1.9%.

The NBFC industry median rose 0.1% on the reaction day, 1.6% by the next close and 1.7% after five sessions. HDB Financial Services therefore exceeded the industry median by 5.8 percentage points on the reaction day, 3.4 percentage points by the next close and 0.3 percentage points after five sessions. Earlier reaction-day moves were 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 224 Non Banking Financial Company peers compared for revenue growth, the median revenue growth was 13.8%. The supplied peer data did not include the counts for companies whose revenue grew faster or slower than HDB Financial Services, so those figures cannot be stated. Of 258 peers compared for profit, 126 reported higher profit.