HDB Financial Services (HDBFS) investor relations material

Executive summary

• Q2 FY27 gross loan book reached ₹1,24,469 crore, up 11.7% YoY; customer franchise grew 18.4% to 24.8 million.

• Disbursements were ₹18,522 crore, up 18.7% YoY; PAT was ₹7,802 million, up 34.2% YoY and down 0.6% QoQ.

• Secured loans were 74% of the gross loan book; annualized ROA was 2.42%, ROE 14.4%, and CRAR 21.37%.

Financial highlights

• Q2 FY27 NII was ₹2,534 crore, up 15.6% YoY and 1.0% QoQ; net income was ₹2,891 crore, up 14.2% YoY.

• PPOP was ₹1,756 crore, up 16.9% YoY; credit cost was ₹730 crore, down 2.5% YoY and up 4.7% QoQ.

• Q2 revenue from operations was ₹50,053 million versus ₹45,454 million; PBT was ₹10,437 million versus ₹7,822 million.

• H1 FY27 revenue was ₹99,432 million and net profit ₹15,654 million; H1 impairment was ₹14,270 million and finance costs ₹35,704 million.

Outlook and guidance

• Management expects disbursement growth to improve through Q3–Q4, with Q4 potentially signaling a move toward 17%–18% growth.

• NIM guidance is 8.2%+ near term and 8%+ longer term; management aims to keep NIM near Q2 levels and calibrate asset repricing against funding costs.

• Medium-term credit cost guidance is 2.3% +/-; annualized ROA target is 2.5% in the short to medium term.

• FY27+ roadmap targets AI processing of 500K documents/day, 1.2x sales productivity and 10% conversion uplift; FY29+ targets include 50% productivity improvement and 20 bps lower credit cost.