HDB Financial Services Q1 Net Profit Up 4.6% QoQ

Summary of Key Information:

Reporting Period (Quarter/Year): Quarter ended June 30, 2026 (Q1 FY27)

Nature of Filing / Announcement: Submission of Unaudited Financial Results along with Limited Review Report, Security Cover Certificate, Statement of utilization and Statement of deviation

Audit Opinion:

The Limited Review Report contains an unmodified opinion.

Auditor’s Comment:

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation 33 and Regulation 52 read with Regulation 63 of the Listing Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters.

Key Financial Highlights [Rs. in million]:

Standalone Results:

| Revenue from Operations | 49,379 | 47,454 | 44,654 |

| Interest income | 42,620 | 40,813 | 38,315 |

| Sale of services | 3,129 | 2,935 | 3,039 |

| Other financial charges | 3,513 | 3,638 | 3,058 |

| Net gain on fair value changes | 117 | 68 | 249 |

| Net gain/(loss) on derecognised financial instruments | (0) | (0) | (7) |

| Finance costs | 17,533 | 16,825 | 17,397 |

| Impairment of financial instruments | 6,971 | 6,846 | 6,697 |

| Employee benefits expenses | 10,354 | 9,705 | 9,601 |

| Depreciation, amortisation and impairment | 548 | 543 | 514 |

| Others expenses | 3,422 | 3,423 | 3,120 |

| Total expenses | 38,828 | 37,342 | 37,329 |

| Profit before tax | 10,551 | 10,112 | 7,325 |

| Tax expense | 2,699 | 2,606 | 1,648 |

| Net Profit for the period | 7,852 | 7,506 | 5,677 |

| Total Comprehensive Income | 7,985 | 8,011 | 4,850 |

| EPS - Basic (in Rupees) | 9.46 | 9.04 | 7.13 |

| EPS - Diluted (in Rupees) | 9.43 | 9.02 | 7.11 |

| Face value per share (in Rupees) | 10 | 10 | 10 |

Key Ratios and Metrics:

| Networth (Rs. in million) | 2,03,324 | 1,97,210 | 1,77,659 | 1,97,210 |

| Current ratio | 1.29 | 1.29 | 1.16 | 1.29 |

| Long term debt to working capital | 6.09 | 6.06 | 7.69 | 6.06 |

| Current liability ratio | 35.94% | 35.38% | 45.33% | 35.38% |

| Total debts to total assets | 80.18% | 80.25% | 74.88% | 80.25% |

| Net profit margin | 15.90% | 15.82% | 12.72% | 13.80% |

| Capital adequacy ratio | 21.29% | 21.40% | 20.18% | 21.40% |

| Gross Stage 3 ratio | 2.34% | 2.44% | 2.56% | 2.44% |

| Net Stage 3 ratio | 1.04% | 1.09% | 1.11% | 1.09% |

| Liquidity coverage ratio | 159.17% | 177.41% | 150.59% | 166.38% |

| Stage 3 provision coverage ratio | 55.73% | 55.53% | 56.70% | 55.53% |

Segment-wise Performance:

The Company is organized primarily into two operating segments: Lending business and BPO services.

Lending business includes providing finance to customers for various purposes like purchase of commercial equipment and commercial vehicles, personal purposes, enterprise loans, etc.
BPO services comprises sales support services, back office, operations, processing support, running collection call centers.

Since the business operations of the Company are primarily concentrated in India, there is no reportable geographic segment.

Corporate Actions:

The Company during the quarter ended June 30, 2026 has allotted equity shares of 49,460, face value of ₹10 fully paid up, on exercise of options by eligible grantees in accordance with the Employee Stock Option Schemes.
No dividend declarations, share splits, bonus issues, or buybacks were announced during this quarter.

Other Significant Information:

IPO Proceeds Utilization:

The Company raised equity capital through Initial Public Offer (IPO) during the previous year ended March 31, 2026, of 16,89,18,917 equity shares of ₹10 each, comprising a fresh issue of 3,37,83,782 equity shares and 13,51,35,135 equity shares offered for sale by the selling shareholders. The equity shares were issued at a price of ₹740 per equity share (including a Share Premium of ₹730 per equity share).

Details of utilization of the IPO proceeds (fresh issue) of ₹25,000 million:

| Augmenting capital base to meet future business requirements towards onward lending | 24,566 | 24,566 | 0 |

| Estimated IPO Expenses | 434 | 371 | 63 |

| Total | 25,000 | 24,937 | 63 |

Unutilised amount from estimated IPO expenses (₹63 million) which are parked in escrow accounts shall be received upon submission of requisite documents.

Co-Lending Arrangements:

| Particulars | As at June 30, 2026 |

| Quantum of CLA's (Rs. in million) | 7,574 |

| Weighted average rate of interest | 26.06% |

| Fees charged/paid (Rs. in million) | 62 |

| Broad sectors in which CLA was made | Salaried & Self-Employed Customers |

| Performance of loans under CLA - Gross Stage 3 | 0.65% |

| Performance of loans under CLA - Net Stage 3 | 0.06% |

| Details related to default loss guarantee, if any | Upto 5% |

Security Cover Details:

The Secured listed non-convertible debt securities of the Company are secured by first pari passu mortgage on immovable property situated at Heera Panna Commercial Complex, 3rd Floor, Dr. Vagnik Road, Rajkot and/or first and exclusive charge on receivables of the Company by way of hypothecation to the extent of minimum 1.0 times of the outstanding principal and interest thereon.

Debt Raising Activities:

During the quarter ended June 30, 2026, the Company raised funds through private placement of various Non-Convertible Debentures and Non-Convertible Notes totaling ₹2,680 crore, all of which were utilized for the intended purposes without any deviation.