HDB Financial Services Reports 36.3% YoY PAT in Q3FY26
Filing Summary
HDB Financial Services Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The company’s asset under management (AUM) reached ₹1,14,853 crore, marking a 12% increase from the previous year. Total gross loans were ₹1,14,577 crore, up by 12.2%. Net interest income rose to ₹2,285 crore, a 22.1% increase. Profit after tax for the quarter was ₹644 crore, a 36.3% rise. Gross Stage 3 loans were at 2.81%, with a provision coverage of 55.59%. The Board approved these results on January 14, 2026.
HDB Financial Services Limited has released its unaudited financial results for the quarter and nine months ending December 31, 2025. The Board of Directors approved these results during a meeting held on January 14, 2026. The company reported an increase in its asset under management (AUM), which stood at ₹1,14,853 crore as of December 31, 2025, compared to ₹1,02,514 crore as of December 31, 2024. This represents a growth of 12%. The total gross loans were ₹1,14,577 crore, reflecting a 12.2% increase from ₹1,02,097 crore in the previous year.
The company’s net interest income for the quarter ended December 31, 2025, was ₹2,285 crore, up from ₹1,872 crore in the same quarter the previous year, marking a 22.1% increase. The net total income rose to ₹2,970 crore, compared to ₹2,499 crore in the previous year, an increase of 18.8%. The pre-provisioning operating profit was ₹1,573 crore, up 23.2% from ₹1,276 crore in the previous year. Loan losses and provisions amounted to ₹712 crore, a 12% increase from ₹636 crore in the previous year. The profit before tax was ₹860 crore, a 34.3% increase from ₹641 crore, while the profit after tax for the quarter was ₹644 crore, up 36.3% from ₹472 crore in the previous year.
Operationally, the company reported that employee benefit expenses included a provision of ₹61 crore due to new labor codes, with ₹56 crore pertaining to the lending business. The gross Stage 3 loans were at 2.81% of total gross loans, compared to 2.25% in the previous year. The net Stage 3 loans were at 1.25%, up from 0.90%. The provision coverage on Stage 3 assets stood at 55.59%, down from 60.02% in the previous year.
The company’s enterprise lending mix remained stable at 38%, while the asset finance mix and consumer finance mix were also at 38% and 24%, respectively. The secured gross loans mix increased slightly to 74% from 72% in the previous year. The net interest margin improved to 8.1% from 7.5%. The credit cost as a percentage of total gross loans was 2.5%, consistent with the previous year. The return on average assets was 2.2% on an annualized basis, up from 1.8%.
HDB Financial Services operates as a non-deposit taking non-banking finance company, offering a wide range of loan products to individuals, emerging businesses, and micro-enterprises. Established in 2007 as a subsidiary of HDFC Bank Limited, it is categorized as an upper layer NBFC by the RBI. The company provides lending products through three business verticals: Enterprise Lending, Asset Finance, and Consumer Finance. As of December 31, 2025, HDBFS has a distribution network of 1,744 branches across 1,165 cities and towns.
For more information, visit the company’s website at www.hdbfs.com. For media inquiries, contact suhanee.shah@adfactorspr.com.