HDB Financial posts strong Q4
HDB Financial Services reported strong Q4 results that sent its shares higher—investors and analysts pointed to loan growth, margin performance and improved return ratios as triggers for the re‑rating. Market commentary noted the stock rose about 11–12% after the earnings and a dividend announcement. (CNBC TV18, (meyka.com))
HDB Financial Services reported a sharper March-quarter profit and the stock jumped about 11% to 12% on April 16 after the results and a dividend announcement. (cnbctv18.com, business-standard.com) The HDFC Bank subsidiary said profit after tax rose 41.4% year on year to ₹751 crore for the quarter ended March 31, 2026, while net interest income climbed 21.6% to ₹2,399 crore. Pre-provisioning operating profit increased 26.7% to ₹1,696 crore and profit before tax rose 43.6% to ₹1,011 crore. (bseindia.com, cnbctv18.com) For the full year, profit after tax reached ₹2,544 crore, up 16.9%, and assets under management rose 10.7% to ₹1,18,733 crore. The gross loan book stood at ₹1,18,493 crore on March 31, up 10.9% from a year earlier. (bseindia.com, cnbctv18.com) Investors focused on three moving parts: loan growth, lending margins and return ratios. Motilal Oswal said the quarter showed a pickup in disbursements, margin expansion of about 15 basis points from the prior quarter and lower credit costs as asset quality improved sequentially. (ndtvprofit.com, cnbctv18.com) That did not erase every concern. HDB said gross Stage 3 loans were 2.44% at March-end versus 2.26% a year earlier, and net Stage 3 loans were 1.09% versus 0.99%, while Motilal Oswal said overall loan growth was still muted because repayments stayed high. (bseindia.com, ndtvprofit.com) The board also recommended a final dividend of ₹2 per share for fiscal 2025-26 and approved a debt fundraising plan of ₹32,825 crore. Those decisions landed with a market already watching the newly listed non-bank lender for signs that earnings could justify a higher valuation. (economictimes.indiatimes.com, bseindia.com) Brokerage reaction was positive but not uniform. Motilal Oswal kept a Neutral rating and raised its target price to ₹720, saying the stock already reflects much of its medium-term growth potential and that clearer evidence on sustained loan growth and structurally better returns is still needed. (ndtvprofit.com) By the close on April 15, before the post-results surge, the shares had finished at ₹644.20 on the BSE. The next test is whether HDB can turn a strong quarter into steadier loan-book growth without letting credit quality slip. (cnbctv18.com, ndtvprofit.com)
