HDB Financial Q2 PAT climbs 34% to Rs 780 crore; stock slips 4%

HDB Financial Services Ltd on Wednesday reported a 34.2 per cent year-on-year (YoY) increase in profit after tax (PAT) to Rs 780 crore for the quarter ended September 30, 2026 (Q2 FY27), compared with Rs 581 crore in the corresponding quarter last year.

Net interest income (NII) rose 15.6 per cent YoY to Rs 2,534 crore in Q2 FY27 from Rs 2,192 crore in Q2 FY26, the company said.

The company's assets under management (AUM) grew 11.6 per cent YoY to Rs 1,24,638 crore as of September 30, 2026, compared with Rs 1,11,721 crore a year earlier.

The gross loan book increased 11.7 per cent to Rs 1,24,469 crore from Rs 1,11,409 crore as of September 30, 2025.

HDB Financial's gross Stage 3 loans declined to 2.43 per cent as of September 30, 2026, from 2.81 per cent a year earlier. Net Stage 3 loans fell to 1.09 per cent from 1.27 per cent over the same period.

The provision coverage ratio on Stage 3 assets stood at 55 per cent, compared with 54.73 per cent as of September 30, 2025.

Interim dividend

The company's board declared an interim dividend of Rs 2 per equity share of face value Rs 10 for the financial year 2026-27 (FY27). The record date for the dividend has been fixed as October 23, 2026.

Meanwhile, HDB Financial shares declined 4.07 per cent to settle at Rs 583.55 on Wednesday. The company's Q2 FY27 earnings were announced after market hours.