Summary:
HDB Financial Services Limited posted strong growth in its Assets Under Management (AUM), net interest income, and operational metrics for Q2 FY26. The company’s AUM rose 12.8% year-on-year to ₹1,11,721 crore, while net total income increased 18.4% to ₹2,851 crore. HDB Financial Services also declared an interim dividend of ₹2 per share, with a record date set for October 24, 2025.
Strong Asset and Loan Growth
HDB Financial Services showcased robust expansion in its balance sheet for the quarter ended September 30, 2025.
- Assets Under Management (AUM): ₹1,11,721 crore, up 12.8% from ₹99,076 crore in Q2 FY25
- Total Gross Loans: ₹1,11,409 crore, a 13% increase from ₹98,624 crore last year
This growth underscores the company’s ability to scale its lending portfolio while maintaining operational efficiency across multiple segments.
Income and Operational Performance
The company’s operational metrics reflected strong performance:
- Net Interest Income (NII): ₹2,192 crore, up 19.6% YoY from ₹1,833 crore
- Net Total Income: ₹2,851 crore, up 18.4% from ₹2,408 crore
- Pre-Provisioning Operating Profit (PPOP): ₹1,530 crore, a 24.4% increase, indicating strong cost management and operational efficiency
These figures highlight HDB Financial Services’ ability to deliver steady growth while optimizing its revenue streams.
Provisions and Profitability
The company took a prudent approach to risk management, reflected in higher provisions:
- Loan Loss Provisions: ₹748 crore, compared to ₹431 crore in Q2 FY25
- Profit Before Tax (PBT): ₹782 crore, slightly below ₹799 crore last year
- Profit After Tax (PAT): ₹581 crore, marginally lower than ₹591 crore in Q2 FY25
- Half-Year PAT: ₹1,149 crore, down from ₹1,173 crore in H1 FY25
Despite higher provisions, the company maintained a healthy bottom line, demonstrating resilience amid a competitive lending environment.
Interim Dividend Announcement
The Board of Directors approved an interim dividend of ₹2 per share, representing 20% of the face value.
- Record Date: October 24, 2025
- Dividend will be paid to shareholders listed in the Register of Members or Depository holders on the record date
This dividend underscores HDB Financial Services’ commitment to rewarding shareholders while continuing its growth trajectory.
Outlook
With steady AUM growth, healthy loan disbursements, and prudent risk management, HDB Financial Services is well-positioned to sustain operational momentum in the coming quarters. The focus on efficient operations, strong revenue growth, and shareholder returns will continue to drive investor confidence and support its market standing.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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