HDB Financial Services jumps 12% after strong Q4 results; dividend declared

HDB Financial Services share price today

 

Shares of HDB Financial Services surged 12 per cent to ₹724 on the BSE in Thursday’s intra-day trade amid heavy volumes after the company reported strong fourth quarter (Q4FY26) results.

 

With today’s rally, the stock price of the HDFC Group company has bounced back 30 per cent from its 52-week low price of ₹557 touched on March 30, 2026. It had hit a 52-week high of ₹891.65 on July 3, 2025. 

 

However, the stock is still trading below its IPO issue price of ₹740. HDB Financial Services made its stock market debut on July 2, 2025.

 

 

At 09:21 AM, the stock was trading 9 per cent higher at ₹704.50, as compared to a 0.7 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped over fivefold with a combined 3.1 million shares changing hands on the NSE and BSE.

 

HDB Financial Services Q4 results

 

HDB Financial Services reported a net profit of ₹751 crore for the quarter ended March 2026, up 41.4 per cent Y-o-Y, driven by higher income and steady loan growth, the company said in a press release. Its net interest income (NII) rose 21.6 per cent to ₹2,399 crore during the quarter, while net total income increased 17.1 per cent to ₹3,063 crore. Provisions and loan losses stood at ₹685 crore, up 8 per cent from a year ago.

 

HDB Financial Services said that its assets under management (AUM) grew 10.7 per cent Y-o-Y to ₹1.19 trillion as of March 31, 2026, while the gross loan book rose 10.9 per cent to ₹1.18 trillion.

 

On the asset quality front, gross stage 3 loans stood at 2.44 per cent compared with 2.26 per cent a year earlier, while net stage 3 loans were at 1.09 per cent against 0.99 per cent. Provision coverage on stage 3 assets was 55.53 per cent.

 

Management shared that the sequential decline in yields during the quarter was driven by a change in the product mix, and it expects improvement in yields as growth in unsecured segments picks up. HDB Financial targets sustaining NIM in the 8 per cent plus range going forward as well. 

 

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.  HDB Financial Services dividend 

Meanwhile, the Board of Directors in its meeting held on April 15, 2026 has recommended a final dividend of Rs 2 per equity share of face value of Rs10 each for the financial year ended March 31, 2026, subject to the approval of the shareholders of the company at its ensuing Annual General Meeting (AGM). 

   

HDB Financial Services share price target 

 

HDB Financial reported a healthy quarter, with a meaningful pickup in disbursements, even as the overall loan growth remained muted due to elevated repayments, said analysts at Motilal Oswal Financial Services. Asset quality improved sequentially, leading to a moderation in credit costs. Margins expanded ~15bp Q-o-Q, supported by a decline in CoF.

 

HDB Financial Services currently trades at 2.3x FY27E P/BV. Analysts estimate a compound annual growth rate (CAGR) of 14 per cent/16 per cent/20 per cent in disbursement/AUM/PAT over FY26-28, with RoA/RoE of 2.5 per cent/14.3 per cent in FY28E. It estimates NIM of 8.2 per cent/8.1 per cent in FY27/FY28E (vs. 8.25 per cent in FY26). The brokerage firm reiterated a Neutral stance with a target price of ₹720 (premised on 2.2x Mar’28E BVPS). 

 

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, the brokerage firm said in its result update.

 

===========================================

 

Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.