HDB Financial Services
HDBFS NSE
HDB Financial Services
Financial ServicesNSE: HDBFS BSE: 544429 Finance
Key Fundamentals
MidcapFinanceFinancial ServicesMarket Cap
₹55,712 Cr
Volatility
Moderate
P/E Ratio
20.11
EBITDA
₹9,512 Cr
Return on Equity
13.75%
Debt to Equity
5.47
Book Value
₹248.74
52W High
₹801.1
52W Low
₹555.3
Tapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Weaknesses
5- Stock is trading at 2.69 times its book value
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 11.0% over past five years.
- Company might be capitalizing the interest cost
- Dividend payout has been low at 11.2% of profits over last 3 years
Growth Rate
Revenue Growth
15.01% higher than
3Y
Net Income Growth
-11.58% lower than
3Y
Cash Flow Change
18.58% higher than
3Y
ROE
-23.23% lower than
3Y
ROCE
-0.53% lower than
3Y
EBITDA Margin (Avg.)
-0.51% lower than
3Y
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2h agoAI opinion · based on fundamentals
Risk medium
HDB Financial Services, a 94%-owned NBFC subsidiary of HDFC Bank that listed in July 2025 via a ₹12,500 crore IPO, trades at a market cap of ~₹55,712 crore with a P/E of 20.4x and P/B of 2.72x. The company reported FY26 total income of ₹18,430 crore (up 13% YoY) and PAT of ₹2,544 crore (up 17%), with AUM crossing ₹1,09,690 crore as of June 2025, while asset quality remains a watch item with GNPA at 2.44% and NNPA at 1.09%.
Bull Case 7
- Strong parentage — HDFC Bank holds ~94% stake (reducing to 75% post-IPO OFS), providing brand credibility, access to low-cost funding channels, and cross-selling opportunities across HDFC Bank's 90mn+ customer base
- AUM grew 14.7% YoY to ₹1,09,690 crore as of June 2025, demonstrating consistent double-digit growth in the loan book across enterprise lending (39.3%), asset finance (38.0%), and consumer finance (22.7%)
- Compounded profit growth of 28% on a TTM basis is significantly ahead of the 12% TTM revenue growth, indicating operating leverage and improving profitability trajectory
- Net interest margin stood at 8.23% in Q4 FY26, among the highest in the diversified NBFC space, reflecting a high-yield retail and SME-focused portfolio
- Q4 FY26 PAT surged 41% YoY to ₹751 crore, with credit costs easing to 2.3% — the lowest in six quarters — and stress pool (Stage 2 + Stage 3) declining to 3.94% from 4.8% sequentially
- RoE of 14-16% over the last 3-5 years and RoA of ~2.48% in Q4 FY26 are respectable for an NBFC of this scale, with consistent return ratios across cycles
- IPO was subscribed 16.69 times with ₹1.6 lakh crore in bids and listed at a 12.8% premium at ₹835, reflecting strong institutional demand including ₹3,369 crore from anchor investors
Bear Case 8
- Stock is trading at 2.72x book value, which is at a premium to several diversified NBFC peers, leaving limited margin of safety if growth slows or asset quality deteriorates
- 5-year compounded sales CAGR of just 11% is modest for a mid-stage NBFC, suggesting the company may be nearing a scale where sustaining high growth becomes harder
- Stock has declined ~14% from its listing highs on a 1-year basis, underperforming broader indices and indicating post-IPO price discovery pressures
- Low interest coverage ratio flagged in the financials raises questions about the adequacy of operating earnings relative to the cost of borrowings in a rising-rate scenario
- Dividend payout has been just 11.2% of profits over the last 3 years, offering a yield of only 0.59%, providing limited income return to shareholders
- GNPA at 2.44% and NNPA at 1.09% are higher than best-in-class peers like Bajaj Finance, and provision coverage ratio of 55.7% on Stage 3 assets leaves room for improvement
- Potential capitalisation of interest costs flagged in the accounts could overstate reported profitability and book value if reversed or adjusted
- Post-IPO, HDFC Bank's stake drops to 75%, and any further stake sale overhang could weigh on the stock given the large free-float increase from 6% to 25%
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago Neutral 1
- NCD issuance worth ₹20,182M Sep 9
HDB Financial Services issued 20,000 secured redeemable NCDs totalling ₹20,181.70 million at 8.05% coupon rate with a 1,064-day tenor, to be listed on BSE Wholesale Debt Market.
TL;DR: A quiet period for HDB Financial Services with only a routine debt market issuance on record. The ₹20,182M NCD raise at 8.05% signals continued access to debt capital markets at reasonable rates. No material headwinds or positive catalysts emerged. Outlook hinges on parent HDFC Bank's strategic plans for HDBFS, including the RBI-mandated listing timeline.
Quarterly Results
| Particulars | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,667 | 3,884 | 4,007 | 4,144 | 4,266 | 4,465 | 4,545 | 4,674 | 4,745 | 4,938 |
| Expenses | 1,368 | 1,560 | 1,561 | 1,809 | 1,858 | 1,942 | 2,017 | 2,058 | 1,997 | 2,075 |
| Financing Profit | 922 | 828 | 847 | 689 | 758 | 784 | 835 | 912 | 1,066 | 1,110 |
| Fin. Margin % | 25% | 21% | 21% | 17% | 18% | 18% | 18% | 20% | 22% | 22% |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest | 1,377 | 1,496 | 1,598 | 1,645 | 1,650 | 1,740 | 1,694 | 1,704 | 1,682 | 1,753 |
| Depreciation | 40 | 44 | 48 | 49 | 54 | 51 | 52 | 51 | 54 | 55 |
| PBT | 882 | 784 | 799 | 641 | 704 | 732 | 782 | 860 | 1,011 | 1,055 |
| Tax % | 26% | 26% | 26% | 26% | 25% | 22% | 26% | 25% | 26% | 26% |
| Net Profit | 656 | 582 | 591 | 472 | 531 | 568 | 581 | 644 | 751 | 785 |
| EPS in Rs | 8.27 | 7.33 | 7.44 | 5.95 | 6.67 | 6.84 | 7.01 | 7.76 | 9.04 | 9.46 |
| Gross NPA % | 1.9% | — | 2.1% | 2.25% | 2.26% | 2.56% | 2.81% | 2.81% | 2.44% | — |
| Net NPA % | — | — | — | 0.9% | 0.99% | 1.11% | 1.27% | 1.25% | 1.09% | 1.04% |
Profit & Loss
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|
| Revenue | 10,945 | 11,312 | 12,403 | 14,173 | 16,300 | 18,431 | 18,902 |
| Expenses | 6,451 | 6,540 | 6,153 | 5,817 | 6,745 | 7,980 | 8,147 |
| Financing Profit | 610 | 1,446 | 2,738 | 3,449 | 3,122 | 3,595 | 3,922 |
| Fin. Margin % | 6% | 13% | 22% | 24% | 19% | 20% | 21% |
| Other Income | -2 | 0 | 1 | 1 | 0 | 1 | 0 |
| Interest | 3,883 | 3,326 | 3,512 | 4,907 | 6,433 | 6,856 | 6,834 |
| Depreciation | 108 | 99 | 112 | 145 | 194 | 209 | 213 |
| PBT | 501 | 1,348 | 2,627 | 3,305 | 2,928 | 3,386 | 3,709 |
| Tax % | 22% | 25% | 25% | 26% | 26% | 25% | — |
| Net Profit | 391 | 1,011 | 1,959 | 2,461 | 2,176 | 2,544 | 2,761 |
| EPS in Rs | 4.96 | 12.8 | 24.76 | 31.03 | 27.34 | 30.64 | 33.27 |
| Div. Payout % | 0% | 8% | 8% | 10% | 11% | 13% | — |
Balance Sheet
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 789 | 790 | 791 | 793 | 796 | 830 |
| Reserves | 7,657 | 8,749 | 10,646 | 12,950 | 15,024 | 19,834 |
| Borrowing | 50,359 | 48,973 | 54,865 | 74,331 | 89,682 | 99,230 |
| Other Liabilities | 3,836 | 3,513 | 3,748 | 4,483 | 3,161 | 3,757 |
| Total Liabilities | 62,641 | 62,026 | 70,050 | 92,557 | 1,08,663 | 1,23,651 |
| Fixed Assets | 317 | 293 | 387 | 511 | 735 | 773 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 1,593 | 2,234 | 1,243 | 3,380 | 2,060 | 3,748 |
| Other Assets | 60,731 | 59,500 | 68,420 | 88,665 | 1,05,868 | 1,19,130 |
| Total Assets | 62,641 | 62,026 | 70,050 | 92,557 | 1,08,663 | 1,23,651 |
Cash Flow
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Operating | -342 | 1,987 | -6,851 | -16,736 | -13,626 | -8,606 |
| Investing | 131 | -703 | 973 | -2,146 | 1,159 | -1,772 |
| Financing | 608 | -1,500 | 5,796 | 19,134 | 12,770 | 10,673 |
| Net Cash Flow | 398 | -216 | -81 | 252 | 303 | 296 |
| Free Cash Flow | -366 | 1,947 | -6,960 | -16,858 | -13,834 | -8,747 |
| CFO/OP | -12 | 42 | -99 | -191 | -135 | -74 |
Ratios
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| ROE % | 5% | 11% | 19% | 20% | 15% | 14% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
Log in to view HDB Financial Services insights
51 extracted metrics + investor summaries across FY16–FY27.
Documents
1
Announcement under Regulation 30 (LODR)-Allotment
28 Apr - Allotted 32,500 NCDs worth Rs 325 crore on April 28, 2026. 28 Apr - Allotted 32,500 NCDs worth Rs 325 crore on April 28, 2026.
2
Announcement under Regulation 30 (LODR)-Allotment
28 Apr - Allotted 32,500 NCDs worth Rs 325 crore on April 28, 2026. 28 Apr - Allotted 32,500 NCDs worth Rs 325 crore on April 28, 2026.
3
Compliances-Reg.24(A)-Annual Secretarial Compliance
25 Apr - Annual Secretarial Compliance Report for FY 2025-2026 noted by Board on April 15, 2026. 25 Apr - Annual Secretarial Compliance Report for FY 2025-2026 noted by Board on April 15, 2026.
4
Compliances-Reg.24(A)-Annual Secretarial Compliance
15h - Annual Secretarial Compliance Report for FY 2025-2026 noted by Board on April 15, 2026. 15h - Annual Secretarial Compliance Report for FY 2025-2026 noted by Board on April 15, 2026.
5
Announcement under Regulation 30 (LODR)-Allotment
22 Apr - Allotted 30,000 NCDs aggregating Rs 300 crore on April 22, 2026; maturity May 4, 2029. 22 Apr - Allotted 30,000 NCDs aggregating Rs 300 crore on April 22, 2026; maturity May 4, 2029.
Frequently Asked Questions about HDB Financial Services
What does HDB Financial Services Ltd do?
Incorporated in 2007, HDB Financial Services Limited (HDBFS) is a non-deposit-taking NBFC and a subsidiary of HDFC Bank engaged in providing lending solutions.[1]
Where is HDB Financial Services Ltd (HDBFS) listed?
HDB Financial Services Ltd trades as HDBFS on the NSE and under code 544429 on the BSE.
Which sector does HDB Financial Services Ltd belong to?
HDB Financial Services Ltd is classified under the Financial Services sector, in the Finance industry.
What is the market capitalisation of HDB Financial Services Ltd?
HDB Financial Services Ltd has a market capitalisation of ₹55,712 Cr, which places it in the Large Cap band.
What is the PE ratio of HDB Financial Services Ltd?
HDB Financial Services Ltd trades at a PE ratio of 20.11, against a book value of ₹248.74 per share.
What is the 52-week high and low of HDB Financial Services Ltd?
Over the last 52 weeks HDB Financial Services Ltd has traded between ₹555.3 and ₹801.1.
Does HDB Financial Services Ltd pay dividends?
HDB Financial Services Ltd has a dividend yield of 0.59%.
What is the Return on Equity (ROE) of HDB Financial Services Ltd?
HDB Financial Services Ltd reported a return on equity of 13.75%. Its debt-to-equity ratio is 5.47.
Company Information
Incorporated in 2007, HDB Financial Services Limited (HDBFS) is a non-deposit-taking NBFC and a subsidiary of HDFC Bank engaged in providing lending solutions.[1]
Website hdbfs.com
CEO Mr. Ramesh Ganesan M.B.A.
Employees 89,943
Listed 2025-07-02
Face Value ₹ 10
Issued Size 83,00,38,180
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