HDB Financial Services share price jumped over 12% in early trade on Thursday after the non-banking lender reported strong results for the January-March quarter (Q4) of the financial year 2025-26 (FY26). HDB Financial Services shares rallied as much as 12.38% to ₹724 apiece on the BSE.
HDB Financial Services reported a net profit of ₹751 crore for the fourth quarter of FY26, registering a growth of 41.4% from ₹531 crore in the year-ago period.
The company’s interest income in Q4FY26 rose 13% year-on-year (YoY) to ₹4,081 crore from ₹3,623 crore.
Asset under management (AUM) increased by 10.7% to ₹1,18,733 crore as on March 31, 2026, from ₹1,07,262 crore as on March 31, 2025. The company’s Gross Loan Book grew 10.9% YoY to ₹1,18,493 crore as on March 31, 2026.
The board of directors of HDB Financial Services also recommended a final dividend of ₹2 per equity share of the face value of ₹10 each for FY26.
Additionally, the board also approved borrowing up to ₹32,825 crore by the issuance of debt securities on a private placement basis, in one or more tranches.
HDB Financial Services’ management indicated that there has been no material impact from geopolitical tensions so far, including within the MSME segment, with performance in March 2026 remaining stable. However, the situation remains fluid, and the company will continue to closely monitor any potential second or third order impacts over the coming weeks/months
Should you buy or sell HDB Financial Services shares after Q4 results?
HDB Financial Services reported a healthy quarter, with a meaningful pickup in disbursements, even as the overall loan growth remained muted due to elevated repayments, analysts said. Asset quality improved sequentially, while margins expanded by around 15 bps QoQ, supported by a decline in cost of funds.
According to brokerage firm Motilal Oswal, HDB Financial Services’ share price currently trades at 2.3x FY27E P/BV. It estimates a CAGR of 14%, 16% and 20% in disbursement, AUM and PAT over FY26-28, with RoA and RoE of ~2.5% and 14.3% in FY28E.
“With valuations largely factoring in medium-term growth potential, we will look for clearer evidence of stronger execution on loan growth, the ability to better navigate industry/product cycles, and structural (not just cyclical) improvement in return ratios,” said Motilal Oswal.
The brokerage firm reiterated its ‘Neutral’ rating on HDB Financial Services shares, but raised the target price to ₹720 apiece, premised on 2.2x March 2028E BVPS.
JM Financial believes HDB Financial Services is at an inflection point, with a notable improvement in asset quality and a pickup in disbursements. Consequently, it revised FY27-28E EPS estimates upwards by 3%, and values the company at 2.1x FY28E BVPS in return for ~15% AUM CAGR and ~15% RoE over FY26-28E.
The brokerage firm maintained an ‘Add’ rating and raised HDB Financial Services share price target to ₹710 apiece from ₹650 earlier.
At 9:50 AM, HDB Financial Services share price was trading 8.40% higher at ₹698.30 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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