HDB Financial Services
HDB Financial Services
Financial ServicesKey Fundamentals
MidcapFinanceFinancial ServicesPrice-based figures as of 9 Oct 2026, 3:31 pm IST · EPS basis: Standalone · TTM
Tapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Weaknesses
4- 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
AI Analysis — Bull vs Bear
As of the 2026-10-06 close, HDB Financial Services traded at ₹616.75, giving it a market capitalisation of ₹51,237.43 crore, a trailing P/E of 18.54x on TTM EPS of ₹33.27, and a price-to-book of 2.48x. TTM profit grew 28% against 12% revenue growth, but ROE of 13.75% is below the 3-year average of 16%. The stock is down 17% over one year and sits about 22.6% below its 52-week high of ₹796.7.
- TTM profit grew 28%, more than twice the 12% TTM revenue growth. This suggests margins or credit costs are improving after a weaker period. A 3-year profit CAGR of only 9% shows how sharp the recent turnaround is.
- Revenue has compounded at 14% over 3 years, faster than the 11% 5-year CAGR. Loan book growth appears to have sped up in recent years rather than slowed.
- The 5-year profit CAGR of 45% shows strong recovery and earnings growth from the pandemic-era base. This points to resilience through a full credit cycle.
- A trailing P/E of 18.54x implies an earnings yield of about 5.4%. That multiple is set against 28% TTM profit growth, so the valuation looks undemanding relative to current earnings momentum.
- At ₹616.75, the stock is about 22.6% below its 52-week high of ₹796.7 and has fallen 17% over one year. Part of the earlier valuation premium has already come out of the price.
- ROE has averaged 16% over both 3 and 5 years. Returns on equity have been fairly stable through the cycle, even though current ROE is lower.
- A market cap of ₹51,237.43 crore and HDFC Bank parentage give the company scale and access to funding and sourcing. Both matter in a lending business where borrowing costs drive spreads.
- A dividend payout of about 11.2% of profits over 3 years means most earnings are retained. That retained capital supports loan book growth and capital adequacy without frequent equity raises.
- ROE has fallen to 13.75% (14% last year) from a 3-year and 5-year average of 16%. Lower profitability makes the current P/B harder to justify.
- The stock trades at 2.48x book value, which works out to about ₹249 book value per share. That premium needs ROE well above the cost of equity, but ROE is now 13.75%.
- The 3-year profit CAGR of 9% trails the 14% revenue CAGR. Over that period, rising funding costs or credit costs absorbed much of the top-line growth.
- The 5-year revenue CAGR of 11% is described as poor sales growth. That is modest for a retail-focused NBFC in an expanding credit market.
- The stock has fallen 17% in one year and is only about 11.1% above its 52-week low of ₹555.3. Sentiment has been weak.
- ROCE is 9.35% and interest coverage is low. Thin spreads leave earnings sensitive to rises in borrowing costs or stress in unsecured and lower-ticket loan segments.
- The dividend yield is 0.64%, and the payout ratio has averaged about 11.2% of profits over 3 years. Income-focused investors get limited cash returns.
- The data flags possible interest capitalisation, and debt-to-equity is not disclosed (null). Leverage and the quality of reported earnings are harder to assess from the data provided.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- CS and Head Legal resigns Sep 29
Dipti Jayesh Khandelwal, Company Secretary and Head Legal, resigned to pursue external career opportunities, effective October 30, 2026. This is a minor key-personnel exit. The risk is in compliance and legal continuity until a successor is named.
- Q2FY27 earnings call Oct 14 Sep 28
HDB Financial will host an analyst call on October 14, 2026, at 6:30 pm IST. It will discuss unaudited results for the quarter and half year ending September 30, 2026.
- 29,480 ESOS shares allotted Sep 21
The company allotted 29,480 equity shares under its ESOS on September 21, 2026. Share count rose from 83,07,64,935 to 83,07,94,415, and paid-up capital rose to ₹8,30,79,44,150. Dilution is negligible at about 0.0035%.
TL;DR: Recent news for HDB Financial Services is mostly routine corporate actions with no material operating or financial developments. The only mild negative is the exit of the Company Secretary and Head Legal on October 30, 2026, so investors should watch for a timely replacement. The ESOS allotment barely dilutes existing holders, despite reports calling it significant. The October 14 Q2FY27 results will be the main near-term trigger, with asset quality, loan growth and margins as the key numbers to watch.
Quarterly Results
| Particulars | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 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% |
Profit & Loss
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|
| 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% | — |
Balance Sheet
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Cash Flow
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Ratios
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| ROE % | 5% | 11% | 19% | 20% | 15% | 14% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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55 extracted metrics + investor summaries across FY16–FY27.
Documents
Frequently Asked Questions about HDB Financial Services
What does HDB Financial Services Ltd do?
Where is HDB Financial Services Ltd (HDBFS) listed?
Which sector does HDB Financial Services Ltd belong to?
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What is the PE ratio of HDB Financial Services Ltd?
What is the 52-week high and low of HDB Financial Services Ltd?
Does HDB Financial Services Ltd pay dividends?
What is the Return on Equity (ROE) of HDB Financial Services Ltd?
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]
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