HDB Financial Services Ltd logo

HDB Financial Services Ltd

HDBFS NSE

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]

AI Verdict: HOLD Confidence: 5%

HDB Financial Services trades at a P/E of 23.4x with moderate ROE of 14% and sales CAGR of 13% TTM. While the HDFC Bank parentage and improving profit growth (17% TTM) offer comfort, the 2.88x P/B valuation, low interest coverage, and modest 11% five-year sales CAGR limit near-term upside.

Key Fundamentals

MidcapFinanceFinancial Services
Market Cap
₹60,961 Cr
Volatility
Moderate
P/E Ratio
24.26
EBITDA
₹9,512 Cr
Debt to Equity
5.47
Book Value
₹248.85
52W High
₹891.9
52W Low
₹555.3

Technical Indicators

Key Insights

Weaknesses

5
  • Stock is trading at 2.93 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 2d ago
HOLD
Risk medium

HDB Financial Services trades at a P/E of 23.4x with moderate ROE of 14% and sales CAGR of 13% TTM. While the HDFC Bank parentage and improving profit growth (17% TTM) offer comfort, the 2.88x P/B valuation, low interest coverage, and modest 11% five-year sales CAGR limit near-term upside.

Bull Case 7
  • TTM profit growth of 17% indicates accelerating earnings momentum compared to the 9% three-year CAGR
  • Consistent ROE of 16% over 3-year and 5-year periods demonstrates stable return generation capability
  • Market cap of Rs 61,135 Cr reflects large-scale NBFC platform with diversified lending book backed by HDFC Bank parentage
  • TTM sales growth of 13% shows improving revenue trajectory versus the 11% five-year CAGR
  • Analyst consensus is positive with 46.67% buy ratings (7 out of 15 analysts) versus only 13.33% sell ratings
  • Five-year compounded profit CAGR of 45% reflects strong long-term earnings compounding albeit from a low base
  • P/E of 23.4x is reasonable for a high-quality NBFC subsidiary with growth optionality from potential IPO listing
Bear Case 8
  • Stock trades at 2.88x book value which is elevated for an NBFC delivering only 14% ROE in the last year
  • Low interest coverage ratio signals potential stress on debt servicing capacity amid rising rate environment
  • Five-year sales CAGR of only 11% is poor for a growth-stage NBFC operating in underpenetrated credit markets
  • Dividend payout of just 11.2% over last three years offers negligible income return with dividend yield at only 0.56%
  • ROE has declined from 16% (3-year and 5-year average) to 14% in the last year, indicating margin or asset quality pressure
  • Potential interest cost capitalization raises concerns about true profitability and accounting quality
  • Only 46.67% analysts recommend buy while 40% are on hold, reflecting lack of strong conviction
  • No 52-week high/low data available suggests limited price discovery and liquidity constraints for investors

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

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 1
  • Strong FY26 PAT and AUM Jun 1

    FY 2025-26 results show PAT of ₹2,543.83 Crore and AUM of ₹1,18,733 Crore, with a proposed final dividend of ₹2 per share. AGM scheduled for June 25, 2026.

Neutral 1
  • ₹5,050 Cr NCD private placement Jun 8

    Allotted 50,500 NCDs worth ₹5,050 crore via private placement with tenures of 1,061 and 1,822 days at coupon rates of 7.7545% and 8.2845% respectively.

TL;DR: HDB Financial Services is delivering solid profitability with ₹2,543.83 Cr PAT and a growing AUM of ₹1.18 lakh crore in FY26, supported by shareholder returns via dividend. The large NCD issuance signals active liability management but no immediate concerns. No visible headwinds in recent news flow; the trend appears stable with steady growth and healthy capital market access.

Quarterly Results

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

Profit & Loss

  Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Revenue
10,945
11,312
12,403
14,173
16,300
18,431
Expenses
6,451
6,540
6,153
5,817
6,745
7,980
Financing Profit
610
1,446
2,738
3,449
3,122
3,595
Fin. Margin %
6%
13%
22%
24%
19%
20%
Other Income
-2
0
1
1
0
1
Interest
3,883
3,326
3,512
4,907
6,433
6,856
Depreciation
108
99
112
145
194
209
PBT
501
1,348
2,627
3,305
2,928
3,386
Tax %
22%
25%
25%
26%
26%
25%
Net Profit
391
1,011
1,959
2,461
2,176
2,544
EPS in Rs
4.96
12.8
24.76
31.03
27.34
30.64
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 Mar 2026
Promoters 74.12%
DIIs 12.28%
Public 9.19%
FIIs 3.01%
Others 1.40%
Total 100.00%
  Oct 2024Jun 2025Jul 2025Sep 2025Dec 2025Mar 2026
Promoters
94.54%
74.19%
74.19%
74.19%
74.15%
74.12%
FIIs
0.00%
4.11%
0.00%
3.17%
3.32%
3.01%
DIIs
0.00%
5.17%
4.50%
10.92%
11.41%
12.28%
Government
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%
Others
5.46%
1.61%
6.40%
1.50%
1.42%
1.40%
No. of Shareholders
41,411
49,366
25,32,280
11,57,250
10,27,200
9,61,497

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 ₹60960.92 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 24.26. 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 ₹891.9. 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 0.55%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
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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