HDB Financial Services announced a 34% increase in net profit for the second quarter of fiscal year 2027, highlighting strong financial performance and growth. The company also declared an interim dividend of ₹2 per share, reflecting confidence in its ongoing business operations.
- Net profit rose 34% year-on-year in Q2 FY27.
- Net interest income increased by 15.6% to ₹2,534 crore.
- Gross loan book grew 11.7% to ₹1,24,469 crore.
- Interim dividend of ₹2 per share declared.
- Return on assets and equity stood at 2.42% and 14.4%, respectively.
What were the key financial highlights for HDB Financial Services in Q2 FY27?
For the quarter ended September 30, 2026, HDB Financial Services reported net interest income of ₹2,534 crore, marking a 15.6% increase from ₹2,192 crore in the same period last year. Revenue from operations rose 10% to ₹5,005 crore compared to ₹4,545 crore in Q2 FY26. The net total income also grew by 12% to ₹3,188 crore from ₹2,851 crore year-on-year.
How did HDB Financial Services' loan book and assets perform?
The company’s gross loan book expanded by 11.7% year-on-year, reaching ₹1,24,469 crore as of September 30, 2026, up from ₹1,11,409 crore the previous year. Similarly, assets under management (AUM) increased by 11.6% to ₹1,24,638 crore in Q2 FY27 compared to ₹1,11,721 crore in Q2 FY26.
What were the company’s profitability and asset quality indicators?
HDB Financial Services reported an annualised return on assets (RoA) of 2.42% and a return on equity (RoE) of 14.4% for the quarter. The net interest margin (NIM) stood at 8.23%, slightly lower than 8.35% in Q1 FY27 but higher than 7.95% a year earlier. The gross non-performing asset (GNPA) ratio improved to 2.43% from 2.81% in the previous year, indicating better asset quality.
What dividend did the board declare?
The board of directors declared an interim dividend of ₹2 per equity share with a face value of ₹10 each. The record date for the dividend was set as October 23, 2026.
How did HDB Financial Services perform in terms of disbursements and branch network?
Disbursements increased by 18.7% year-on-year and 5.1% sequentially to ₹18,522 crore in Q2 FY27. The company operated 1,701 branches across 1,156 cities and towns by the end of the quarter, supporting its growth strategy.
What was the market reaction to the Q2 FY27 results?
On the day of the announcement, HDB Financial Services shares closed at ₹583.75 on the National Stock Exchange, down 4.15%. Despite the strong earnings, the stock had declined over 23% since the start of the year and had experienced a 12% drop in the past month. The shares had reached a 52-week high of ₹796.70 in December 2025 and a low of ₹555.30 in March 2026.
What is the company’s borrowing mix?
As of September 30, 2026, HDB Financial Services’ borrowings consisted of 43% bank loans, 28% non-convertible debentures (NCDs), and the remaining from other financial instruments.
