HDB Financial profit rises 34% YoY, but slips sequentially
Standalone margin improved as revenue growth outpaced expenses, while higher interest costs weighed on sequential profit.
Filed 14 Oct 2026, 16:06 IST · after market close · HDB Financial Services Ltd (HDBFS)
Key takeaways
- Standalone net profit rose 34.19% year on year to Rs 780.2 cr, while revenue increased 10.12%.
- Operating margin expanded 2.67 percentage points year on year because expenses grew 3.49%, well below revenue growth.
- Sequential net profit slipped 0.64% as interest expense rose 3.64%, despite a 0.33-percentage-point reduction in the tax rate.
Price around the results
Year-on-year profit growth outpaced revenue
HDB Financial Services reported standalone net profit growth of 34.19% year on year, ahead of the 10.12% increase in revenue. Operating profit rose 15.41%, while profit before tax increased 33.44%, indicating that the improvement was not driven by other income, which was zero. The results were filed after market close.
Expense discipline lifted the operating margin
Expenses grew 3.49% year on year against 10.12% revenue growth, helping operating margin expand 2.67 percentage points. Sequentially, revenue grew 1.37% while expenses rose 0.59%, taking the margin up 0.32 percentage points. The margin has increased in every quarter since Q2FY26, from 55.63% then to 58.30% now.
Interest costs explain the sequential profit dip
Quarter on quarter, interest expense rose 3.64%, faster than the 1.92% increase in operating profit, and profit before tax fell 1.08%. Net profit declined 0.64% even as the tax rate eased 0.33 percentage points to 25.25%. With other income at zero, the quarter's profit does not include a non-operating boost from that line.
No immediate market reaction; recent history has been mixed
The filing came after market close, so there is no current-session stock reaction to assess. Across the last five result reactions, the stock rose three times and fell twice, with a median absolute move of 0.8%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,005 cr | ₹4,938 cr | +1.37% | +10.12% |
| Other income | ₹0 cr | ₹0 cr | — | — |
| Expenses | ₹2,087 cr | ₹2,075 cr | +0.59% | +3.49% |
| Operating profit | ₹2,918 cr | ₹2,863 cr | +1.92% | +15.41% |
| Operating margin (%) | 58.30% | 57.98% | — | — |
| Interest | ₹1,817 cr | ₹1,753 cr | +3.64% | +7.26% |
| Depreciation | ₹57 cr | ₹55 cr | +4.73% | +9.46% |
| Profit before tax | ₹1,044 cr | ₹1,055 cr | -1.08% | +33.44% |
| Tax | ₹264 cr | ₹270 cr | -2.36% | +31.27% |
| Net profit | ₹780 cr | ₹785 cr | -0.64% | +34.19% |
| EPS (₹) | ₹9.39 | ₹9.46 | -0.74% | +33.95% |
What to watch
- Whether operating margin holds above 58.30% after rising each quarter since Q2FY26.
- Whether interest expense remains below the pace of operating-profit growth after increasing 3.64% sequentially.
- Whether the tax rate stays near 25.25% without becoming a larger influence on net profit.