HDB Financial Services Ltd. reported a significant 34.2% year-on-year increase in its profit after tax (PAT), reaching Rs 780 crore for the second quarter of the financial year 2026-27 (Q2 FY27), ending September 30, 2026. This marks a substantial rise from Rs 581 crore recorded in the corresponding quarter of the previous year.
Strong Revenue and Asset Growth
The company also saw robust growth in its net interest income (NII), which climbed 15.6% year-on-year to Rs 2,534 crore in Q2 FY27, up from Rs 2,192 crore in Q2 FY26. Assets under management (AUM) expanded by 11.6% year-on-year, reaching Rs 1,24,638 crore as of September 30, 2026, compared to Rs 1,11,721 crore a year earlier.
Furthermore, HDB Financial's gross loan book grew by 11.7%, totaling Rs 1,24,469 crore from Rs 1,11,409 crore as of September 30, 2025.
Improved Asset Quality and Dividend Declaration
The financial services provider demonstrated an improvement in asset quality, with gross Stage 3 loans declining to 2.43% as of September 30, 2026, down from 2.81% in the prior year. Net Stage 3 loans also saw a reduction, falling to 1.09% from 1.27% over the same period. The provision coverage ratio for Stage 3 assets stood at 55%, slightly up from 54.73% recorded a year ago.
In addition to the strong financial performance, HDB Financial Services' board declared an interim dividend of Rs 2 per equity share with a face value of Rs 10 for FY27. The record date for this dividend has been set for October 23, 2026.
Stock Performance Post-Earnings
Despite the positive earnings report, which was announced after market hours, HDB Financial shares experienced a decline. On Wednesday, the company's stock fell 4.07%, settling at Rs 583.55.