HDB Financial Services Q2 FY27 Results: Standalone Net Profit ₹780 Crore on Total Income of ₹5,005 Crore

Earnings
Financial Services

Blacklitt Research14 October 20262 min read

A stone bank building with tall columns and trees in front — Daderot, via Wikimedia Commons (CC0 1.0). Illustrative image.

HDB Financial Services reported standalone total income of ₹5,005.32 crore and net profit of ₹780.19 crore for the quarter ended 30 Sep 2026.

Key highlights

Standalone

The company on its own, without its subsidiaries

Total income: ₹5,005 crore, up 10.1% YoY, up 1.4% QoQ
Net profit: ₹780 crore, up 34.2% YoY, down 0.6% QoQ
EPS: ₹9.39, against ₹7.01 in Q2 FY26
Interim dividend: ₹2 a share (20%) declared for FY2026-27

Summary

Standalone ₹ crore
Particulars	Q2 FY27	Q2 FY26	YoY	Q1 FY27	QoQ
	5,005.32	4,545.39	+10.1%	4,937.90	+1.4%
Revenue from operations	5,005.32	4,545.39	+10.1%	4,937.90	+1.4%
Other income	0.00	0.00	n/a	0.00	n/a
	780.19	581.41	+34.2%	785.19	-0.6%
Finance costs	1,817.11	1,694.04	+7.3%	1,753.26	+3.6%
Depreciation	57.39	52.43	+9.5%	54.80	+4.7%
Tax expense	263.53	200.76	+31.3%	269.90	-2.4%
Net profit margin	15.59%	12.79%	+2.80 pp	15.90%	-0.31 pp
Tax as share of profit before tax	25.2%	25.7%	-0.42 pp	25.6%	-0.33 pp
EPS, basic (₹)	9.39	7.01	+34.0%	9.46	-0.7%

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

Profit grew three times as fast as revenue because costs grew slowly and credit costs fell. Revenue from operations rose 10.1% to ₹5,005.32 crore and net profit 34.2% to ₹780.19 crore. Profit before tax rose to ₹1,043.7 crore from ₹782.2 crore (+33.4%, derived): costs grew by about ₹198 crore against revenue up ₹460 crore (derived). Finance costs rose 7.3% to ₹1,817.1 crore, impairment on financial instruments fell to ₹729.9 crore from ₹748.3 crore, and employee benefits rose to ₹1,016.4 crore from ₹957.7 crore.

Impairment took 14.6% of revenue against 16.5%, and finance costs 36.3% against 37.3% (derived), so lower credit cost and cheaper funding each added to the margin, which rose to 15.59% from 12.79%. The filing text read does not give the asset quality ratios behind the lower impairment. Against June revenue rose 1.4% and profit was level at ₹785.19 crore. For H1 FY27 net profit is ₹1,565.4 crore against ₹1,149.3 crore and revenue from operations ₹9,943.2 crore against ₹9,010.8 crore.

The board declared an interim dividend of ₹2 a share (20% of face value). At about 83.1 crore shares (derived from profit and earnings per share) that is about ₹166 crore, roughly 21% of the quarter's profit (derived). The board also appointed Mr. Vinod Koyande as Company Secretary from 31 October 2026. The limited review report of the joint statutory auditors is unmodified.

Inference

HDB Financial's profit rose far faster than its revenue because impairment and funding costs took smaller shares of it.

The filing text read does not give loan book or asset quality figures, so how lasting the lower credit cost is cannot be judged from it.

Reference: Original filing (PDF)

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