HDB Financial Q4 Profit Jump 41%; Dividend Declared, Growth Focus Ahead
HDB Financial Q4 Profit Jump 41%; Dividend Declared, Growth Focus Ahead
HDB Financial reports a 41% Q4 profit surge, announces dividend, and eyes growth momentum as disbursements rise and asset quality improves.
HDB Financial Services Ltd posted a strong March quarter, with a meaningful pickup in disbursements and a 41% year-on-year jump in profit. The quarter ended March 31, 2026 saw the company report a profit of Rs 750.6 crore, up from Rs 530.9 crore a year earlier, underscoring improving earnings momentum. While overall loan growth remained muted due to elevated repayments, asset quality improved sequentially, helping to moderate credit costs. Margins expanded, helped by a decline in the cost of funds and stable asset yields, signaling better operating efficiency.
Brokerages highlighted that despite the resilient quarterly performance, growth in assets under management (AUM) remained elusive during the period, with enterprise lending and asset finance not yet delivering robust expansion. JM Financial revised its FY27-28 EPS estimates upwards by about 3% each for HDB Financial, valuing the company at roughly 2.1 times FY28 book value and 15% AUM CAGR with a 15% RoE over FY26-28; it maintained an ADD rating with a higher target price of Rs 710. SBI Securities echoed the view that the focus should shift towards sustaining growth momentum, with supply chain normalization and a swift resolution to the West-Asia conflict as key monitorables going forward.
In the market action, the stock settled at Rs 644.20 on the trading day, reflecting positive sentiment around the earnings beat and the dividend approval. The board also approved a proposal to raise funds through the issuance of debt securities on a private placement basis, signaling financial flexibility to support future growth amidst a cautious lending environment.
