HDFC Bank Subsidiary Posts First Full-Year Results After Listing; Shares Gain 7%
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HDB Financial Services Ltd share price surged 7 per cent after reporting its first full-year results post listing for March 31, 2026, backed by strong income growth and improved margins despite rising credit costs.
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HDB Financial Services Ltd share price rose 7 per cent following the announcement of its financial results for the quarter and year ended March 31, 2026.
The company reported net interest income of Rs 2,399 crore for the quarter, marking an increase of 5.0 per cent quarter-on-quarter and 21.6 per cent year-on-year. For the full year ended March 31, 2026, net interest income stood at Rs 8,968 crore, up 20.4 per cent compared with the previous year.
Net interest margin for the March quarter improved to 8.23 per cent, compared with 8.09 per cent in the preceding quarter and 7.55 per cent in the same period last year. On an annual basis, net interest margin rose to 7.96 per cent for the year ended March 31, 2026, from 7.56 per cent a year earlier, indicating better yield management and lending efficiency.
Operational efficiency also showed improvement during the period. The cost-to-income ratio for the lending business declined to 39.5 per cent in Q4FY26, compared with 41.6 per cent in Q3FY26 and 42.9 per cent in Q4FY25. For the full year, the ratio stood at 41.1 per cent, improving from 42.8 per cent in the previous year.
However, credit costs remained elevated. Credit cost for the quarter was reported at Rs 685 crore, slightly lower than Rs 712 crore in the previous quarter but higher than Rs 634 crore in the corresponding quarter last year. For the full year ended March 31, 2026, credit cost increased to Rs 2,815 crore, compared with Rs 2,113 crore in the previous financial year.
Despite higher credit costs, profitability improved. Profit after Tax for the quarter stood at Rs 751 crore, compared with Rs 531 crore in the same quarter last year. For the full year, profit after tax rose to Rs 2,544 crore, up from Rs 2,176 crore in the year ended March 31, 2025.
About HDB Financial Services Ltd
HDB Financial Services Ltd is a subsidiary of HDFC Bank. It is licensed by RBI as a Non-Banking Finance Company (“NBFC”) and is classified as an ‘Upper Layer’ NBFC. The company has a network of 1,730 branches spread across 1,161 cities and towns in India.
HDB Financial Services Ltd Share Price Performance
HDB Financial Services Ltd share price rose 7.70 per cent to Rs 693.90 in early trade on April 16, 2026, following the announcement of its Quarterly Results, indicating a positive near-term market reaction. The stock touched an Intraday high of Rs 723.95, reflecting strong buying interest after the earnings release.
However, despite the sharp rise post-results, the stock remains down 9.12 per cent on a year-to-date basis, pointing to underlying caution among investors. Over the past month, the share price has gained 8.13 per cent, indicating some recovery ahead of the results.
Disclaimer: The article is for informational purposes only and not investment advice.