HDB Financial Services Shares Surge 12% Following Strong Q4 Performance
HDB Financial Services jumps 12% after strong Q4 results; dividend declared
Business Standard
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HDB Financial Services saw a 12% increase in share price, reaching ₹724 after reporting a 41.4% year-on-year rise in net profit for Q4 FY26. The company also declared a dividend of ₹2 per share, reflecting strong financial health despite challenges in the loan growth sector.
- 01HDB Financial Services' share price rose by 12% to ₹724 following strong quarterly results.
- 02The company reported a 41.4% increase in net profit year-on-year, totaling ₹751 crore.
- 03Net interest income grew by 21.6% to ₹2,399 crore.
- 04A final dividend of ₹2 per equity share was recommended by the Board of Directors.
- 05Analysts project a 14% CAGR in disbursement over the next two years.
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HDB Financial Services, part of the HDFC Group, experienced a substantial 12% surge in its share price, reaching ₹724 on the Bombay Stock Exchange (BSE) amid robust trading volumes. This increase follows the company's announcement of strong fourth quarter (Q4FY26) results, where it reported a net profit of ₹751 crore, marking a 41.4% year-on-year growth. The rise in profit was attributed to higher income and steady loan growth, with net interest income climbing 21.6% to ₹2,399 crore. The company's assets under management increased by 10.7% to ₹1.19 trillion, while the gross loan book rose by 10.9% to ₹1.18 trillion. Despite a slight increase in gross stage 3 loans to 2.44%, HDB Financial Services aims to maintain a net interest margin (NIM) above 8%. Additionally, the Board has recommended a final dividend of ₹2 per share for the fiscal year ending March 31, 2026, pending shareholder approval. Analysts at Motilal Oswal Financial Services have set a target price of ₹720 for the stock, citing the need for clearer evidence of sustained loan growth and improved return ratios.
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The rise in share price and strong financial performance could boost investor confidence and attract more investments in the company, potentially leading to increased market stability.
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