HDB Financial Services Limited (HDBFS)
Large CapFinancial Services stocks · Large cap · NSE
HDB Financial Services is an RBI-licensed 'Upper Layer' NBFC, a subsidiary of HDFC Bank. It operates across 1,710 branches in 1,165 cities, focusing on Enterprise Lending, Asset Finance, and Consumer Finance for underbanked and underserved customers with a granular, seasoned loan book.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 55/100Rev +11% YoY · PAT +38% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,938 Cr | +10.6% | +4.1% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹785 Cr | +38.2% | +4.5% |
| PAT margin | 15.9% | +318 bps | +7 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
HDBFS reports strong Q1 FY27 PAT of 785 Cr, up 38.3% YoY and 4.6% QoQ, driven by 19.9% YoY NII growth. Gross Loan Book grew 11.4% YoY to 1,21,846 Cr, while asset quality improved with GNPA at 2.34% (down YoY and QoQ).
The company delivered robust Q1 FY27 results with strong NII and PAT growth, supported by an expanding customer base and loan book. Asset quality showed improvement, and return metrics remained healthy. The sequential decline in disbursements is a point to monitor, but overall performance aligns with a growth thesis.
Gross Loan Book Mix by Business Vertical (Jun-26)
Latest issuer-disclosed distribution across 3 reported categories.
Customer Franchise Expansion
Customer franchise grew to 23.9 million with an increase of 18.6% Y-o-Y and 4.1% during the quarter.
Diversified Product Portfolio
Product portfolio serving multiple credit needs of customers across three business verticals: Enterprise Lending, Asset Finance and Consumer Finance.
Pan-India Branch Network
Network of 1,710 branches spread across 1,165 cities and towns, with 71% of branches located in Tier 4 & Beyond towns, focusing on underserved customers.
Digital Transformation (Shikhar)
AI-powered transformation journey to enhance customer journeys, drive efficiencies, and deliver measurable impact across acquisition, assurance, and ascend functions.
Focus on Underbanked/Underserved
Leverages long operating track record and understanding of customer behavior to focus on lending to underbanked and underserved customers ('Aspirational India').
Strong Parentage
HDBFS is a subsidiary of HDFC Bank, which is the largest private sector bank in India, providing strong and reliable financial backing.
Robust Technology Adoption
The 'Shikhar' AI-powered transformation journey aims to enhance customer journeys, drive efficiencies, and reduce credit cost by 20 bps.
Sequential Decline in Disbursements
Disbursements for the quarter ended June 30, 2026, were down by 11.5% Q-o-Q.
Credit Risk
Managed by defining target markets and underwriting criteria for every product, providing loans only to eligible customers who pass minimum credit parameters.
Liquidity Risk
Managed by performing Gap Analysis to measure interest rate risk exposure and tailoring advances book and funding strategy to offset repricing of borrowings.
Technology Risk
Managed via Disaster Recovery and Business Continuity Plans (BCP) to enhance system resiliency against system failures and cyber-attacks.
Compliance Risk
Managed by rigorous testing and robust internal policies, updated frequently in line with regulatory changes, with active compliance risk management and monitoring.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
NBFCs exhibit both sequential momentum in disbursements and loan book growth, making QoQ relevant, while annual comparisons (YoY) are crucial for assessing underlying business expansion and seasonal impacts on profitability and asset quality.
Gross Loan Book Growth
Gross loan book as on June 30, 2026 stood at 1,21,846 crores, growing 11.4% Y-o-Y and 2.8% sequentially.
Disbursements
Disbursements for the quarter ended June 30, 2026 was 17,629 crores, up by 16.2% Y-o-Y and down by 11.5% Q-o-Q.
Net Interest Margin (NIM)
Net Interest Margin for Q1FY27 was at 8.35% vs 7.74% in Q1FY26 & 8.23% in Q4FY26.
Cost of Borrowings
Cost of Borrowings (quarterly annualized) was 6.97% as of Jun-26, compared to 6.93% in Mar-26 and 7.57% in Jun-25.
Prudent, Purposeful, Resilient Growth
Management is focused on prudent, purposeful, resilient growth which is rooted in values and embedded with best-in-class governance practices.
Enhancing Customer Journeys
Through the 'Shikhar' AI-powered transformation, the company aims for AI-driven acquisition, seamless onboarding, and AI-enabled experiences across apps and web.
Driving Efficiencies
AI-powered document processing, agentic AI for CDU operations, and Gen AI Voice BOT-led inbound servicing are expected to improve productivity and reduce TAT.
Delivering Measurable Impact
AI initiatives are projected to increase sales productivity by 1.2x-1.5x, improve conversion by 10-25%, and reduce credit cost by 20 bps.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Disbursement Growth (QoQ) | Down 11.5% QoQ | Reversal of sequential decline and sustained growth momentum in disbursements. |
| Net Interest Margin (NIM) | 8.35% | Stability or expansion of NIM, indicating effective asset-liability management and pricing power. |
| Gross Stage 3 (GNPA) | 2.34% | Continued improvement or stability in asset quality, reflecting effective risk management and collection efforts. |
| Cost to Income Ratio | 39.9% | Further efficiency gains, particularly as technology investments from the 'Shikhar' initiative ramp up. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
39BearishSMA20 -2.5% / mo · MACD +
Technical chart
HDBFSdaily · 1Y · AUTO-0.0%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 47. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~2.6% over last month) — short-term momentum negative.
- RSI(14) at 47 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 15% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 0.6% of the 30-week proxy.
- The 30-week proxy changed -0.8% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 22 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 22 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 10.0%.
- Growth contributes 11/25 to the score.
- Quality contributes 6/20 to the score.
Main drags
- Altman Z is 0.6, in distress territory.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 16th percentile of the scored universe and 29th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter holding is 74.1%. Key concern: Operating cash flow is negative at ₹-13626 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 29th pctile, median 62 · Large: 9th pctile, median 73
31 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.1%.
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-13626 Cr.
- ▸Debt/equity is 5.52.
- ▸Altman Z is 0.61.
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 26.10
- P/B
- —
- EV/EBITDA
- 742.86
- Market Cap
- 56716.00Cr
Profitability
- ROE
- 14.70%
- ROCE
- 9.79%
- ROA
- 2.00%
- Dividend Y
- 0.59%
Growth (CAGR)
- Revenue 5Y
- 2.41%
- EPS 5Y
- 32.61%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 5.52
- Interest Coverage
- —
- Altman Z
- 0.61
- Book Value
- —
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -13626.00 Cr
- EPS TTM
- 27.34
Shareholding
- Promoter Hold
- 74.12%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 52%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.