Shares of HDB Financial Services Ltd fell by 1.58% to ₹828.00 on Tuesday after the company reported its first-ever quarterly earnings post-listing. The stock opened lower from the previous close of ₹841.25 as investors reacted to a slight decline in profitability despite growth in revenue and loan book.
The NBFC posted a net profit of ₹568 crore for Q1 FY26, down over 2% from ₹582 crore a year earlier. Meanwhile, revenue from operations grew 15% YoY to ₹4,465 crore compared to ₹3,884 crore in Q1 FY25. The net profit margin contracted to 12.72% from 14.98% in the year-ago quarter.
Gross NPAs rose to 2.56% of total loans (vs. 1.93% last year), while net NPAs increased to 1.11%. Total gross loans stood at ₹1.09 lakh crore, up 14.3% YoY. Disbursements, however, fell 8% YoY to ₹15,171 crore.
Net interest income climbed to ₹2,092 crore, marking an 18.3% YoY increase. The company maintained a healthy provisioning coverage of 56.7% on its stage-3 loans and ended the quarter with a market cap near ₹68,700 crore.
HDB had listed on the NSE this month at a 13% premium to its IPO price, becoming India’s eighth most valuable NBFC. Despite today’s drop, the stock remains above its IPO price and reflects investor optimism over its long-term growth prospects.
