HDB Financial Services Ltd.Record Disbursements & Asset Quality Gains

HDB Financial Services delivered an impressive Q4 FY26 with profit after tax rising 16.6% sequentially to ₹751 crore, driven by record quarterly disbursements of ₹19,922 crore, up 11.2% quarter-on-quarter.

The gross loan book grew steadily to ₹1,18,493 crore, expanding 10.9% year-on-year, while net interest margin improved to 8.23%, up 68 basis points year-on-year and 14 basis points sequentially. Asset quality showed significant improvement with gross NPA declining to 2.44% from 2.81% in the previous quarter, and credit cost moderating to 2.35%. The customer franchise expanded to 22.9 million, growing 19.7% annually. Management targets medium-term growth at nominal GDP plus 6-7% CAGR, with credit costs expected around 2.3% going forward.

Digital initiatives gained traction as DIY platform disbursements multiplied 2.2 times in FY26, while AI-driven collections improved efficiency by 25 basis points. Management expressed confidence in sustaining current NIM levels above 8% and anticipates a healthy FY27, though monitoring West Asia conflict impacts on supply chains.