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HDB Financial Services Ltd

HDBFS NSE

Key Fundamentals

MidcapFinanceFinancial Services
Market Cap
₹57,302 Cr
Volatility
Moderate
P/E Ratio
20.59
EBITDA
₹9,512 Cr
Return on Equity
13.75%
Debt to Equity
5.47
Book Value
₹248.78
52W High
₹811.8
52W Low
₹555.3

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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28 extracted metrics + investor summaries across FY16–FY26.

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Tapetide Score

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Technical Indicators

Key Insights

Weaknesses

5
  • Stock is trading at 2.77 times its book value
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 11.0% over past five years.
  • Company might be capitalizing the interest cost
  • Dividend payout has been low at 11.2% of profits over last 3 years

Growth Rate

Revenue Growth
15.01%
Net Income Growth
-11.58%
Cash Flow Change
18.58%
ROE
-23.23%
ROCE
-0.53%
EBITDA Margin (Avg.)
-0.51%

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 7d ago
AI opinion · based on fundamentals
Risk medium

HDB Financial Services, a 94.6% subsidiary of HDFC Bank, recently listed via IPO at ₹740 per share and currently trades around ₹686 with a market cap of approximately ₹56,518 crore. The company reported FY25 revenue of ₹16,300 crore (up 15% YoY) but saw PAT decline 12% to ₹2,175 crore, while its loan book grew 19.2% YoY to ₹1,03,343 crore with GNPA at 2.49%.

Bull Case 8
  • Strong loan book growth of 19.2% YoY in FY25, expanding from ₹86,721 crore to ₹1,03,343 crore, demonstrating robust lending momentum
  • Backed by HDFC Bank (94.6% promoter stake pre-IPO, now ~74%), providing strong parentage, brand trust, and access to low-cost funding channels
  • Revenue from operations grew 15% YoY in FY25 to ₹16,300 crore, with interest income surging 24% YoY to ₹13,835 crore
  • Net interest margin of approximately 8.2% is healthy for a retail-focused NBFC, indicating strong pricing power across its diversified product segments
  • Three-year average ROE of approximately 16-18% reflects consistent capital efficiency above the cost of equity for the sector
  • Diversified lending across Enterprise Lending, Asset Finance (largest segment), and Consumer Finance (22.79%) reduces concentration risk
  • Q4 FY26 profit before tax grew 43.6% YoY to ₹1,011 crore, signaling a sharp earnings recovery after the FY25 dip
  • Compounded profit growth of 45% over 5 years and 28% TTM indicates long-term earnings trajectory remains intact despite FY25 blip
Bear Case 8
  • FY25 PAT declined 11.6% YoY from ₹2,460 crore to ₹2,175 crore despite strong topline growth, indicating margin or provisioning pressure
  • Stock trades at 2.71x price-to-book, a premium valuation for an NBFC with only 14% ROE in the last year
  • Low interest coverage ratio suggests vulnerability to rising borrowing costs or asset quality deterioration in a stressed environment
  • Five-year compounded sales CAGR of only 11% is modest for a high-growth NBFC segment, lagging faster-growing peers
  • Stock has declined approximately 9% over the past year (post-listing), underperforming broader indices and indicating weak investor sentiment
  • Dividend payout of just 11.2% of profits over the last 3 years offers minimal income return to shareholders, with dividend yield at only 0.59%
  • GNPA at 2.49% and net NPA at 1.38% are manageable but elevated compared to best-in-class NBFCs, and loan losses rose 8% YoY in Q4 FY26
  • Potential interest cost capitalization flagged in accounts raises questions about the true cost structure and reported profitability

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 4h ago
Positives 2
  • Q1 net profit surges 38.3% Jul 15

    HDB Financial Services reported net profit of ₹785 crore for Q1 FY27, up 38.3% YoY, with gross loan book growing 11.4% YoY to ₹1,21,846 crore.

  • Jimmy Tata reappointed as director Jul 28

    Board approved Jimmy Tata's appointment as Non-Executive Director nominee of HDFC Bank, pending RBI and shareholder approval, ensuring continuity of HDFC Bank representation.

Neutral 4
  • ₹9,445 Cr NCD issuances at 8.23% Aug 6

    HDB Financial Services allotted NCDs totalling ₹9,445 crore (₹5,445 Cr on Aug 6 and ₹4,000 Cr on Jul 23) at 8.2301% coupon, maturing July 5, 2029, secured against receivables.

  • Investor meetings scheduled in August Aug 4

    Company disclosed participation in three major conferences in Mumbai during August 2026, including Emkay Confluence and Equirus Annual India Conference.

  • Jimmy Tata's term ended Jul 14 Jul 14

    Jimmy Tata ceased to be Non-Executive Non-Independent Director on July 14, 2026 upon completion of his three-year term, but was subsequently reappointed on Jul 28.

  • Board meeting for fund raising Jul 18

    Board meeting scheduled for July 23 to consider fund raising; no details on size, instrument, or purpose were disclosed at announcement.

TL;DR: HDB Financial Services delivered a strong Q1 FY27 with 38.3% profit growth and healthy loan book expansion, signalling solid operational momentum. The company is actively raising debt capital through large NCD issuances totalling ₹9,445 crore to fund growth. No material headwinds are visible in recent news flow. The trend appears positive with improving profitability and proactive capital management heading into FY27.

Quarterly Results

  Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue
3,667
3,884
4,007
4,144
4,266
4,465
4,545
4,674
4,745
4,938
Expenses
1,368
1,560
1,561
1,809
1,858
1,942
2,017
2,058
1,997
2,075
Financing Profit
922
828
847
689
758
784
835
912
1,066
1,110
Fin. Margin %
25%
21%
21%
17%
18%
18%
18%
20%
22%
22%
Other Income
0
0
0
0
0
0
0
0
0
0
Interest
1,377
1,496
1,598
1,645
1,650
1,740
1,694
1,704
1,682
1,753
Depreciation
40
44
48
49
54
51
52
51
54
55
PBT
882
784
799
641
704
732
782
860
1,011
1,055
Tax %
26%
26%
26%
26%
25%
22%
26%
25%
26%
26%
Net Profit
656
582
591
472
531
568
581
644
751
785
EPS in Rs
8.27
7.33
7.44
5.95
6.67
6.84
7.01
7.76
9.04
9.46
Gross NPA %
1.9%
2.1%
2.25%
2.26%
2.56%
2.81%
2.81%
2.44%
Net NPA %
0.9%
0.99%
1.11%
1.27%
1.25%
1.09%
1.04%
Figures in ₹ Crores

Profit & Loss

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Revenue
10,945
11,312
12,403
14,173
16,300
18,431
18,902
Expenses
6,451
6,540
6,153
5,817
6,745
7,980
8,147
Financing Profit
610
1,446
2,738
3,449
3,122
3,595
3,922
Fin. Margin %
6%
13%
22%
24%
19%
20%
21%
Other Income
-2
0
1
1
0
1
0
Interest
3,883
3,326
3,512
4,907
6,433
6,856
6,834
Depreciation
108
99
112
145
194
209
213
PBT
501
1,348
2,627
3,305
2,928
3,386
3,709
Tax %
22%
25%
25%
26%
26%
25%
Net Profit
391
1,011
1,959
2,461
2,176
2,544
2,761
EPS in Rs
4.96
12.8
24.76
31.03
27.34
30.64
33.27
Div. Payout %
0%
8%
8%
10%
11%
13%
Figures in ₹ Crores

Balance Sheet

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
789
790
791
793
796
830
Reserves
7,657
8,749
10,646
12,950
15,024
19,834
Borrowing
50,359
48,973
54,865
74,331
89,682
99,230
Other Liabilities
3,836
3,513
3,748
4,483
3,161
3,757
Total Liabilities
62,641
62,026
70,050
92,557
1,08,663
1,23,651
Fixed Assets
317
293
387
511
735
773
CWIP
0
0
0
0
0
0
Investments
1,593
2,234
1,243
3,380
2,060
3,748
Other Assets
60,731
59,500
68,420
88,665
1,05,868
1,19,130
Total Assets
62,641
62,026
70,050
92,557
1,08,663
1,23,651
Figures in ₹ Crores

Cash Flow

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
-342
1,987
-6,851
-16,736
-13,626
-8,606
Investing
131
-703
973
-2,146
1,159
-1,772
Financing
608
-1,500
5,796
19,134
12,770
10,673
Net Cash Flow
398
-216
-81
252
303
296
Free Cash Flow
-366
1,947
-6,960
-16,858
-13,834
-8,747
CFO/OP
-12
42
-99
-191
-135
-74
Figures in ₹ Crores

Ratios

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
5%
11%
19%
20%
15%
14%

Shareholding Pattern

As of Jun 2026
Promoters 74.12%
DIIs 12.10%
Public 8.89%
FIIs 3.55%
Others 1.34%
Total 100.00%
  Oct 2024Jun 2025Jul 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
94.54%
74.19%
74.19%
74.19%
74.15%
74.12%
74.12%
FIIs
0.00%
4.11%
0.00%
3.17%
3.32%
3.01%
3.55%
DIIs
0.00%
5.17%
4.50%
10.92%
11.41%
12.28%
12.10%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
0.00%
14.92%
14.92%
10.22%
9.71%
9.19%
8.89%
Others
5.46%
1.61%
6.40%
1.50%
1.42%
1.40%
1.34%
No. of Shareholders
41,411
49,366
25,32,280
11,57,250
10,27,200
9,61,497
9,25,474

Documents

Frequently Asked Questions about HDB Financial Services Ltd

What does HDB Financial Services Ltd do?
Incorporated in 2007, HDB Financial Services Limited (HDBFS) is a non-deposit-taking NBFC and a subsidiary of HDFC Bank engaged in providing lending solutions.[1]
Where is HDB Financial Services Ltd (HDBFS) listed?
HDB Financial Services Ltd is listed on the Indian stock exchanges. It is listed on NSE: HDBFS and BSE: 544429. You can view its live share price, financials, and ratios on Tapetide.
Which sector does HDB Financial Services Ltd belong to?
HDB Financial Services Ltd operates in the Financial Services sector within the Finance industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of HDB Financial Services Ltd?
HDB Financial Services Ltd has a market capitalisation of approximately ₹57302.35 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of HDB Financial Services Ltd?
The Price-to-Earnings (PE) ratio of HDB Financial Services Ltd is 20.59. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of HDB Financial Services Ltd?
Over the past 52 weeks, HDB Financial Services Ltd has traded between a low of ₹555.3 and a high of ₹811.8. This range helps investors understand the stock's price volatility and recent trading levels.
Does HDB Financial Services Ltd pay dividends?
Yes, HDB Financial Services Ltd has a dividend yield of 0.58%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of HDB Financial Services Ltd?
HDB Financial Services Ltd has a Return on Equity (ROE) of 13.75%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research HDB Financial Services Ltd on Tapetide?
On Tapetide, you can view HDB Financial Services Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 2007, HDB Financial Services Limited (HDBFS) is a non-deposit-taking NBFC and a subsidiary of HDFC Bank engaged in providing lending solutions.[1]

Website hdbfs.com
CEO Mr. Ramesh Ganesan M.B.A.
Employees 89,943
Listed 2025-07-02
Face Value ₹ 10
Issued Size 83,00,38,180

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