HDB Financial Services (HDBFS) Q4 25/26 earnings summary

Executive summary

• Customer base expanded to 22.9 million, up 19.7% year-over-year and 4.3% sequentially, with a branch network of 1,730 across 1,161 cities/towns.

• Gross loan book reached ₹1,18,493 crore, up 3.4% sequentially and 10.9% year-over-year, with 74% secured loans.

• Q4 FY26 saw highest-ever quarterly disbursement, up 11% sequentially.

• Significant investments in technology and AI improved operational efficiency, customer service, and early collections.

• Audited standalone results for FY26 were approved, with an unmodified audit opinion and compliance with SEBI regulations.

Financial highlights

• Net Interest Income for Q4 FY26 was ₹2,399 crore, up 5% sequentially and 21.6% year-over-year; FY26 NII was ₹8,968 crore, up 20.4%.

• Net Interest Margin for Q4 FY26 at 8.23%, up from 8.09% in Q3 and 7.55% in Q4 FY25.

• Profit After Tax for Q4 FY26 at ₹751 crore, up 16.6% sequentially and 41.4% year-over-year; FY26 PAT was ₹2,544 crore, up 16.9%.

• Revenue from operations for FY26 was ₹1,84,297 million, up from ₹1,63,003 million in FY25.

• Cost-to-income ratio for Q4 FY26 at 39.5%, improved from 41.6% in Q3 and 42.9% in Q4 FY25.

Outlook and guidance

• Medium-term growth targeted at nominal plus 6%-7% CAGR, with continued focus on risk-adjusted expansion and underserved markets.

• Net Interest Margin guidance maintained at 8%+.

• Digital and AI initiatives expected to support asset quality and operational efficiency.

• Board approved borrowing of up to ₹32,824.72 crore via debt securities, subject to shareholder approval.

• IPO proceeds primarily allocated to augment capital base for future business growth.