HDB Financial Services shares experienced a dramatic surge of over 12.26% on Thursday, hitting an intraday high of ₹723 apiece before paring gains to trade 8.41% higher at ₹698 as of 09:50 AM. According to reports from ET Now, the HDFC Bank subsidiary's stock delivered mixed performance across different timeframes, outperforming the broader Nifty 500 in the short term but lagging on a year-to-date basis. Over the past week, the stock gained 12.31% compared with the Nifty 500's 2.91% rise, while in the one-month period, HDB advanced 8.28%, ahead of the index's 5.49% gain.
The company reported exceptional Q4FY26 results with profit after tax surging 41.4% year-on-year to ₹751 crore for the quarter ended March 31, 2026, compared to ₹531 crore for the same period in 2025. As reported by The Economic Times, profit after tax rose 17% to ₹2,544 crore for the full year ended March 31, 2026, compared to ₹2,176 crore for the previous year. Net interest income grew 21.6% to ₹2,399 crore for the quarter, while net total income increased 17.1% to ₹3,063 crore. Pre-provisioning operating profit jumped 26.7% to ₹1,696 crore for the quarter, demonstrating strong operational performance. Profit before tax surged 44% to ₹1,011 crore compared with ₹704 crore in the same quarter last year, supported by improved operating leverage.
According to the company's results reported by The Economic Times, asset quality showed marked improvement with Gross Stage 3 loans increasing to 2.44% as against 2.26% as at March 31, 2025. Net Stage 3 loans stood at 1.09% compared to 0.99% in the previous year. Provision coverage remained strong at 55.53% on stage 3 assets versus 55.95% in the previous year. Credit cost as a percentage of total gross loans moderated to 2.3% from 2.4% year ago, indicating some easing in stress levels despite elevated delinquencies. Asset under management grew 10.7% to ₹1,18,733 crore as of March 31, 2026, while gross loan book increased 10.9% to ₹1,18,493 crore. Secured loans continued to dominate, accounting for 74% of the overall book, indicating a relatively conservative risk profile.
The Board approved a fundraising of ₹32,825 crore through debt securities, including renewal of ₹31,975 crore and fresh capital of ₹850 crore. As reported by The Economic Times, the fundraising will be executed through issue of debt securities in one or more tranches. Additionally, the company has declared a final dividend of ₹2 per share for the financial year ended March 2026. Margins improved during the quarter, with net interest margin rising to 8.2% from 7.6% a year ago and 8.1% in the preceding quarter. Return on average assets also strengthened to 2.5% (annualised), compared with 2% in the year-ago period, highlighting improved profitability metrics.
The lending mix remained broadly stable with enterprise lending contributing 38%, asset finance 38%, and consumer finance 24% of the portfolio as of March 2026. According to The Economic Times, assets under management stood at ₹1.18 lakh crore as of March 2026, up 11% year-on-year, while the gross loan book grew 11% to ₹1.18 lakh crore. Despite a rise in loan losses and provisions to ₹685 crore from ₹634 crore, the company's profitability remained resilient, supported by higher income and improved operating leverage. Analysts remain cautious on near-term upside, noting that sustained pickup in loan growth will be critical for meaningful re-rating despite improving fundamentals and stable operating performance.
