Shares of HDB Financial Services, a subsidiary of HDFC Bank, rose over 6.5% on the Bombay Stock Exchange (BSE) following a strong financial performance in Q4 FY26. The company reported a net profit of ₹750 crore, marking a 40% increase year-on-year, driven by lower provisions and robust disbursement growth in sectors such as consumer durables and personal loans. Assets under management (AUM) also grew by 11% year-on-year, while net interest margins (NIMs) expanded by 14 basis points sequentially, supported by a lower cost of funds. Analysts from Jefferies noted that disbursement growth was particularly strong in consumer durables and unsecured business loans. Despite concerns over the West Asia conflict, the management does not foresee any immediate impact on growth or collections. Looking ahead, HDB Financial aims to maintain a return on equity (RoE) above 15% and achieve a credit growth rate of 17-18% CAGR from FY26 to FY28.