HDB Financial Services Limited – Investor Presentation Summary

Key Operational Highlights

  • Customer franchise grew to 23.9 million, an increase of 18.6% Y-o-Y and 4.1% during the quarter
  • Gross loan book as on June 30, 2026 stood at ₹1,21,846 crores, growing 11.4% Y-o-Y and 2.8% sequentially
  • Disbursements for the quarter ended June 30, 2026 was ₹17,629 crores, up by 16.2% Y-o-Y and down by 11.5% Q-o-Q
  • Branch count stood at 1,710 spread across 1,165 cities and towns
  • Secured loans comprised 74% of the Gross loan book
  • Employee Count was 63,546 for the lending business

Key drivers of operational performance: Granular and well seasoned loan book with top 20 largest borrowers contributing ~0.30% of loans, serving 'Aspirational India' through three business lines: Enterprise Lending, Asset Finance, and Consumer Finance

Segment-wise Performance

Enterprise Lending: ₹45,742 crores (37.5% of total)

  • Loan Against Property: ₹26,422 crores
  • Enterprise Business Loan: ₹2,365 crores
  • Business Loan: ₹11,497 crores
  • Salaried Personal Loan: ₹3,584 crores
  • Gold Loan: ₹1,874 crores

Asset Finance: ₹45,009 crores (36.9% of total)

  • Commercial Vehicle Loans: ₹29,503 crores
  • Construction Equipment Loans: ₹12,444 crores
  • Tractor Loans: ₹3,062 crores

Consumer Finance: ₹31,095 crores (25.5% of total)

  • Consumer Durables Loans: ₹6,759 crores
  • Auto Loans: ₹10,584 crores
  • Two-Wheeler Loans: ₹3,747 crores
  • Relationship Personal Loan: ₹9,448 crores
  • Micro Lending: ₹558 crores

Explanation of significant changes in segment performance: Consumer Finance showed strongest growth momentum across multiple product categories

Financial Highlights

Revenue: ₹4,262 crores (Interest income)

Net Interest Income: ₹2,509 crores, increase of 19.9% Y-o-Y and 4.6% Q-o-Q

PAT: ₹785 crores, as against ₹568 crores for Q1 FY26 and ₹751 crores for Q4 FY26

EPS: ₹9.5 for the quarter

Margins: Net Interest Margin of 8.35% vs 7.74% in Q1FY26 & 8.23% in Q4FY26

YoY/QoQ comparison: PAT up 38.3% YoY and 4.6% QoQ

Drivers of financial performance: Higher net interest income growth, improved net interest margins, and controlled operating expenses

Key Risks: Not explicitly disclosed in the presentation

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified in the presentation

Regional Breakdown: Not specified

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly stated, but leverage ratio shown as 5.03 in historical data

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: CRAR of 21.29% as at June 30, 2026

Financial Health Insights: Strong and reliable financial institution independently funded with long-term debt & bank facilities rated CARE AAA & CRISIL AAA

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Not specified

Investment Rationale: Focus on lending to underbanked and underserved customers through pan-India branch network

Strategic & R&D Initiatives

Investments in Innovation: AI-powered transformation journey called 'Shikhar' focusing on four areas: customer onboarding, customer engagement, customer servicing, and credit & collections

Expected impact on growth: Short-term targets include 500K documents/day processing, 1.2x sales productivity, +10% conversion; Medium-term targets include 1.5x sales productivity, +25% conversion, 50% productivity improvement

Strategic Rationale: Enhancing customer journeys, driving efficiencies, and delivering measurable impact through digital transformation

Industry Trends & Business Environment

Macro/Industry Trends: Not explicitly discussed in detail

Impact on Company: Not explicitly discussed

Management Commentary & Growth Outlook

Strategic Outlook: Focused on prudent, purposeful, resilient growth rooted in values with foundational pillars of People, Processes, Products, Partnerships

FY Guidance: Not explicitly provided

Market Share Targets: Not explicitly provided

Risks and Opportunities: Not explicitly highlighted

ESG Updates

ESG Priorities: Environment, Social & Governance integration with focus on ethical conduct, stakeholder commitment, impact reporting, robust compliance, and continuous ESG improvement

CSR Highlights: >5,68,000 trees planted, >22,900 tons waste diverted, 332 sanitation complexes retrofitted, 1,089 waterbodies restored, 3,713 diagnostic camps, 200 patient beds introduced, 8 physiotherapy centers, 1,339 financial literacy workshops, >16,24,000 lives impacted