Non-banking financial company (NBFC) HDB Financial Services reported a 34.3% year-on-year (YoY) rise in net profit to ₹780.2 crore for the second quarter of financial year 2026-27, compared with ₹581 crore in the corresponding quarter last year.
Net interest income (NII), which reflects the difference between interest earned and interest paid, rose 15.5% YoY to ₹2,534 crore for the quarter ended September 30, 2026, from ₹2,193 crore a year earlier.
Net total income increased 12% to ₹3,188 crore from ₹2,851 crore in the year-ago period. Pre-provisioning operating profit grew 15.9% to ₹1,774 crore from ₹1,530 crore, indicating an improvement in operating performance before accounting for provisions against potential loan losses.
Loan losses and provisions declined 2.5% to ₹730 crore during the quarter, compared with ₹748 crore in the corresponding period last year.
HDB Financial Services also reported growth in its lending business. Assets under management (AUM) stood at ₹1,24,638 crore as of September 30, 2026, up 11.6% from ₹1,11,721 crore a year earlier.
Its gross loan book expanded 11.7% to ₹1,24,469 crore from ₹1,11,409 crore over the same period.
Asset quality improved year-on-year, with gross Stage 3 loans declining to 2.43% from 2.81% as of September 30, 2025. Net Stage 3 loans also fell to 1.09% from 1.27%. Stage 3 loans are loans classified as credit-impaired under the applicable accounting framework and are an indicator of stress in a lender’s loan portfolio.
The provision coverage ratio on Stage 3 assets stood at 55% as of September 30, 2026, marginally higher than 54.73% a year earlier. The ratio indicates the extent to which a lender’s provisions cover its Stage 3 assets.
Separately, the company’s board declared an interim dividend of ₹2 per equity share with a face value of ₹10 each. October 23, 2026, has been set as the record date to determine shareholders eligible to receive the dividend.
Ahead of the earnings announcement, HDB Financial Services shares closed 4.02% lower at ₹584.55 on October 14, down ₹24.50 from the previous close. The stock has declined 23.49% so far in 2026, shedding ₹179.50 over the period.
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