HDB Financial Q1 Profit Surges 38% As Revenue Nears Rs 5,000 Crore

HDB Financial Services reported a strong performance in the first quarter of financial year 2027, with its net profit increasing 38% year-on-year on the back of robust loan growth, higher disbursements and continued strength in its lending operations. The non-banking financial company (NBFC) posted a net profit of Rs 735 crore for the quarter ended June 30, compared with Rs 532 crore in the same period last year, reflecting steady business expansion and healthy credit demand.

The company’s total revenue increased 10.6% year-on-year to Rs 4,938 crore from Rs 4,465 crore in the corresponding quarter. The rise in income was supported by sustained growth across its lending portfolio and strong operational performance. HDB Financial Services continued to benefit from demand across its retail-focused lending segments, helping it maintain growth momentum despite a competitive financial environment.

Loan disbursements during the quarter rose 16.2% year-on-year to Rs 17,629 crore, highlighting continued customer demand for credit. The company’s assets under management (AUM) expanded 32.4% to Rs 1.09 lakh crore, while gross loans outstanding increased 17.4% from the previous year to Rs 1.14 lakh crore. The growth reflects the company’s efforts to strengthen its lending franchise and expand its presence across various customer segments.

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Asset quality remained largely stable during the quarter, although gross non-performing assets (GNPA) showed a moderate increase. GNPA stood at 2.58% at the end of June, compared with 2.31% a year earlier. Net non-performing assets (NNPA) remained steady at 1.05%, indicating controlled credit risks despite the expansion of the loan portfolio. The company continued to focus on maintaining disciplined lending practices and managing asset quality.

HDB Financial Services also reported a 20.5% year-on-year increase in pre-provision operating profit (PPOP), which rose to Rs 1,420 crore during the quarter. The improvement reflected stronger operating efficiency and continued performance from its core lending business. The results mark a positive beginning to FY27, supported by healthy credit demand and effective execution of its business strategy.

The quarterly performance highlights the company’s continued growth in the retail lending space as the broader financial sector adapts to changing interest rate conditions and evolving credit trends. With rising disbursements, expanding assets under management and stable asset quality, HDB Financial Services appears to have maintained strong operational momentum at the start of the new financial year.

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