Customer Franchise
22.9M
+19.7% YoY
Customer base expanded to 22.9 million, up 4.3% sequentially and 19.7% YoY.
HDBFINANCIAL
Diversified
30 Apr 2026
HDB Financial Services Ltd — Q4 FY26
HDB Financial Services delivered a strong Q4 FY26, with PAT at ₹751 crore (up 16.6% QoQ) and gross NPA improving to 2.44% from 2.81% in Q3.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
HDB Financial Services delivered a strong Q4 FY26, with PAT at ₹751 crore (up 16.6% QoQ) and gross NPA improving to 2.44% from 2.81% in Q3. Disbursements hit an all-time high of ₹19,922 crore, up 11.2% QoQ, driven by enterprise lending (28% QoQ growth) and gold loan (587.8% QoQ). NIM expanded to 8.23% (vs 8.09% QoQ) as management held yields and optimized borrowing costs. Asset quality improved across segments, with credit cost moderating to 2.35%. Management targets medium-term AUM growth of nominal GDP +6-7%, with disbursement momentum expected to translate into book growth. Key risk: West Asia conflict and potential supply chain disruptions could impact CV and MSME segments, though no material impact seen yet.
Key Numbers
Gross Loan Book
₹1,18,493 Cr
+10.9% YoY
Gross loan book grew 3.4% QoQ and 10.9% YoY, with secured loans at 74%.
Disbursements (Q4)
₹19,922 Cr
+11.2% QoQ
Highest quarterly disbursement ever, driven by enterprise lending and gold loan growth.
Gross NPA (Stage 3)
2.44%
-37bps QoQ
Gross NPA improved from 2.81% in Q3 to 2.44%, with improvement across all products.
Management Guidance
Medium-term AUM growth of nominal GDP +6-7%
Management targets AUM growth at nominal GDP plus 6-7% over the medium term, with disbursement momentum as the leading indicator.
Management guidance growthCredit cost to moderate around 2.3%
Credit cost is expected to remain in the range of 2.3% plus/minus for the medium term, down from 2.35% in Q4.
Management guidance marginsNIM to sustain above 8%
Management aims to maintain NIM above 8% on a sustainable basis, with current NIM at 8.23% and a non-negotiable 8%+ target.
Management guidance marginsCost-to-assets ratio to remain around 3.7-3.8%
Operating expenses as a percentage of assets are expected to stay in the 3.7-3.8% range, with continued investment in AI and technology.
Management guidance otherKey Risks
West Asia conflict impact on CV and MSME
The ongoing West Asia conflict could disrupt supply chains and impact commercial vehicle and MSME customers, though no material impact seen yet.
high · management_commentaryK-shaped recovery in asset finance
Recovery in asset finance is K-shaped: older stressed accounts are recovering slowly, while newer slips recover faster, posing residual risk.
medium · analyst_questionRising borrowing costs
Borrowing costs have increased over the last month; management expects to sustain current levels for the near term but faces uncertainty.
medium · analyst_questionUnsecured business loan growth risk
Unsecured business loan disbursements have not grown as much; management expects growth to resume but asset quality remains a monitorable.
low · data_observationNotable Quotes
Our customer franchise expanded to 22.9 million about two and a half times since 2022.
We have not reduced a single square footage of usage in the last three quarters that we've been in existence.
An 8 plus is a non-negotiable the way we treat it internally today.
Frequently Asked Questions
What was HDB Financial Services's revenue in Q4 FY26?
HDB Financial Services reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did HDB Financial Services management give for FY27?
Medium-term AUM growth of nominal GDP +6-7%: Management targets AUM growth at nominal GDP plus 6-7% over the medium term, with disbursement momentum as the leading indicator. Credit cost to moderate around 2.3%: Credit cost is expected to remain in the range of 2.3% plus/minus for the medium term, down from 2.35% in Q4. NIM to sustain above 8%: Management aims to maintain NIM above 8% on a sustainable basis, with current NIM at 8.23% and a non-negotiable 8%+ target. Cost-to-assets ratio to remain around 3.7-3.8%: Operating expenses as a percentage of assets are expected to stay in the 3.7-3.8% range, with continued investment in AI and technology.
What are the key risks for HDB Financial Services in FY27?
Key risks include West Asia conflict impact on CV and MSME — The ongoing West Asia conflict could disrupt supply chains and impact commercial vehicle and MSME customers, though no material impact seen yet.; K-shaped recovery in asset finance — Recovery in asset finance is K-shaped: older stressed accounts are recovering slowly, while newer slips recover faster, posing residual risk.; Rising borrowing costs — Borrowing costs have increased over the last month; management expects to sustain current levels for the near term but faces uncertainty.; Unsecured business loan growth risk — Unsecured business loan disbursements have not grown as much; management expects growth to resume but asset quality remains a monitorable..
Did HDB Financial Services meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full HDB Financial Services Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.