HDB Financial Services Reports 41.4% Profit Surge in Q4 FY2026
HDB Financial Q4 profit rises 41.4% to ₹751 crore on steady growth
Business Standard
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HDB Financial Services announced a net profit of ₹751 crore for the quarter ending March 2026, marking a 41.4% increase year-on-year. The growth was attributed to higher income and consistent loan growth, with total assets under management reaching ₹1.19 trillion.
- 01Net profit for Q4 FY2026 rose to ₹751 crore, up 41.4% year-on-year.
- 02Full-year profit after tax increased by 16.9% to ₹2,544 crore.
- 03Net interest income for the quarter grew by 21.6% to ₹2,399 crore.
- 04Assets under management reached ₹1.19 trillion, a 10.7% year-on-year increase.
- 05Gross stage 3 loans increased to 2.44%, indicating a slight decline in asset quality.
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HDB Financial Services reported a net profit of ₹751 crore for the quarter ending March 2026, reflecting a 41.4% increase from the previous year. This growth was driven by a 21.6% rise in net interest income, which reached ₹2,399 crore, and a total income increase of 17.1% to ₹3,063 crore. For the full fiscal year, the profit after tax rose 16.9% to ₹2,544 crore. The company's assets under management (AUM) also grew 10.7% year-on-year to ₹1.19 trillion, while the gross loan book expanded by 10.9% to ₹1.18 trillion. However, the asset quality showed a slight deterioration, with gross stage 3 loans increasing to 2.44% from 2.26% a year earlier. The net interest margin improved to 8.2%, up from 7.6%, indicating better profitability on loans. The lending mix remained stable, with enterprise lending and asset finance each making up 38% of the portfolio, while consumer finance accounted for 24%.
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The growth in profit and assets under management may lead to increased lending capacity, potentially benefiting borrowers with more loan options and competitive interest rates.
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