HDFC Bank Limited
NSE: HDFCBANK
Financial Services · Banks - Regional
₹692.80 last close on 23 Oct 2026 −0.18%
Research updated
HDB Financial Services Limited
NSE: HDBFSFinancial ServicesCredit Services
- Last close
- ₹504.85
- Day change
- −₹5.20 (−1.02%)vs
- Market cap
- ₹50,457 crIndian rupees
- Research updated
- 3 reports
Follow HDB Financial Services
Create an account, then follow this company for weekday briefs. You will return to HDB Financial Services after signing in.
About HDB Financial Services
HDB Financial Services Limited is a prominent non-banking financial company (NBFC) in India, established in 2007 and headquartered in Mumbai. As a subsidiary of HDFC Bank, India’s largest bank by market capitalization, it plays a significant role in providing financial solutions to individuals and businesses across the country. The company’s core offerings include a wide spectrum of secured and unsecured loans such as personal loans, auto loans, business loans, gold loans, and consumer durable financing, as well as mortgage and asset finance. HDB Financial Services also operates a robust business process outsourcing (BPO) segment, delivering both back-office and customer-facing services like forms processing, document verification, contact center management, and collections. With a nationwide footprint encompassing over 1,700 branches in 27 states and four union territories, HDB Financial Services demonstrates strong operational reach and market penetration. It is recognized for its high creditworthiness, consistently receiving top-tier ratings (CARE AAA, CRISIL AAA, A1+) for its long- and short-term debt facilities. As of FY25, the company is among the largest NBFCs in India by assets under management, with a diversified funding base and a reputation for stability and reliability within the financial sector.
- Sector
- Financial Services
- Industry
- Credit Services
- Listing
- NSE: HDBFS
- Chief executive
- Mr. Ramesh Ganesan M.B.A.
- Employees
- 88,162
- Headquarters
- Mumbai, India
- ISIN
- INE756I01012
- Website
- hdbfs.com
Public research · Report of
Business model & financial foundation
HDB Financial (NSE: HDBFS), Non Banking Financial Company (NBFC) - diversified retail lender (upper layer): revenue of ₹18,430 crore in FY26 (+13.1% on FY25) and net profit of ₹2,544 crore.
- Revenue, FY26 (₹ crore)
- 18,430
- standalone
- Revenue growth, FY26
- +13.1%
- on FY25
- Net profit, FY26 (₹ crore)
- 2,544
- to owners
- Return on equity, FY26
- 13.9%
- on average equity
- Market capitalisation (₹ crore)
- 50,457
- at the close of 14 Oct 2026
Company profile
HDB Financial Services is the retail NBFC subsidiary of HDFC Bank, lending to salaried and self-employed customers in semi-urban and rural India through about 1,700 branches. Its gross loan book (Rs 1.18 lakh crore at March 2026) is split roughly 38% enterprise lending (secured business loans, LAP, unsecured business loans), 38% asset finance (commercial vehicles, construction equipment, tractors, cars) and 24% consumer finance (consumer durables, two-wheelers, personal and gold loans). It also runs a BPO services business for HDFC Bank. It listed on the NSE and BSE on 2 July 2025.
| Item | Value |
|---|---|
| Legal name | HDB Financial Services Limited |
| Exchange and ticker | NSE: HDBFS; BSE: 544429 |
| ISIN | INE756I01012 |
| CIN | L65993GJ2007PLC051028 |
| Sector | Financial Services |
| Industry | Non Banking Financial Company (NBFC) - diversified retail lender (upper layer) |
| Headquarters | Mumbai, India |
| Fiscal year end | March |
| Reporting basis and unit | standalone, in ₹ crore |
| Auditor | Kalyaniwalla & Mistry LLP and G.D. Apte & Co. (joint statutory auditors) |
| Market capitalisation | ₹50,457 crore (14 Oct 2026) |
| Shares outstanding | 83.03 crore shares (FY26) |
| Price | ₹609.0 (close, 14 Oct 2026) |
| 52-week range | ₹555.3 - ₹796.7 (to 14 Oct 2026) |
| Website | https://www.hdbfs.com |
Corporate structure and shareholding
Parent: HDFC Bank Limited (74.12% at 31 Mar 2026).
No subsidiary is recorded.
No subsidiaries, JVs or associates (FY26 annual report). Two reported segments: Lending (financing) and BPO services (back-office, sales-support and collection services rendered mainly to HDFC Bank).
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 74.15% | 74.12% | 74.12% | 74.10% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 3.32% | 3.01% | 3.55% | |
| Domestic institutions | 11.41% | 12.28% | 12.10% | 16.00% |
| of which mutual funds | 10.40% | 10.96% | 10.59% | |
| Retail | 7.25% | 6.84% | 6.58% | 9.90% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
HDBFS(NSE:HDBFS, BSE544429) is the standalone retail NBFC subsidiary of HDFC Bank; no subsidiaries/JVs/associates in FY26. Lending books at March2026: Enterprise44841, AssetFinance44729, Consumer28923 INRcr. At June2026 grossloans121846, 74%secured, 1710branches,23.9millioncustomers. The lender controls underwriting/distribution/collections but not borrower utilisation, ratecycle or parent contracts. BPO sells backoffice, sales support and collection services primarily to HDFC Bank, with FY26grossincome1223.91 INRcr. Distinguish gross statutory revenue, NII(interest less finance), and net total income(NII+other operating+BPO): three different quantities, never interchangeable.
| Segment | revenue, FY26 (₹ crore) | Share | result, FY26 (₹ crore) | Share |
|---|---|---|---|---|
| Lending business | 17,206 | 93.4% | 3,364 | 97.6% |
| BPO services | 1,224 | 6.6% | 81.2 | 2.4% |
Segments as the company reports them (standalone); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Bajaj Finance (BAJFINANCE) | Largest diversified retail NBFC; consumer durables and personal loans overlap HDBFS consumer finance |
| Shriram Finance (SHRIRAMFIN) | Largest CV and MSME lender; overlaps HDBFS asset finance and enterprise lending |
| Cholamandalam Investment and Finance (CHOLAFIN) | Vehicle finance, LAP and SME lending at similar yields; closest product-mix peer |
| L&T Finance (LTF) | Parent-backed diversified retail NBFC (two-wheelers, tractors, MFI, personal loans) |
| Mahindra & Mahindra Financial Services (M&MFIN) | Parent-backed vehicle and tractor financier with semi-urban/rural focus |
| Sundaram Finance (SUNDARMFIN) | Conservative AAA vehicle financier; asset-quality benchmark |
| Poonawalla Fincorp (POONAWALLA) | Diversified retail NBFC rebuilding growth; similar consumer and MSME mix |
Financial databook
| Profit and loss (₹ crore) | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Total revenue from operations | 12,403 | 14,171 | 16,300 | 18,430 |
| Cost of revenue (vendor classification) * | 5,107 | 5,492 | 6,060 | 6,791 |
| Other operating costs (vendor classification) * | 717.7 | 882.0 | 1,008 | 1,228 |
| EBITDA (vendor classification) * | 6,019 | 7,156 | 8,729 | 9,825 |
| EBIT * | 4,663 | 6,056 | 6,477 | 6,853 |
| Finance costs | 3,512 | 4,864 | 6,390 | 6,820 |
| Profit before tax | 2,627 | 3,305 | 2,928 | 3,386 |
| Total tax expense including prior-year tax | 668.1 | 843.8 | 751.9 | 842.5 |
| Net profit for period/year | 1,959 | 2,461 | 2,176 | 2,544 |
| Diluted EPS (INR) | 24.76 | 31.04 | 27.32 | 30.88 |
| Interest income | 8,928 | 11,157 | 13,836 | 15,788 |
| Other financial charges plus fair-value and derecognition gains | 841.2 | 1,065 | 1,248 | 1,417 |
| Sale of services (gross BPO income) | 2,634 | 1,950 | 1,217 | 1,224 |
| Impairment of financial instruments | 1,330 | 1,067 | 2,113 | 2,815 |
| Employee benefits expenses (including BPO) | 4,058 | 3,851 | 3,620 | 3,914 |
| Depreciation, amortisation and impairment | 111.8 | 145.1 | 194.4 | 209.3 |
| Other expenses (excluding depreciation) | 763.8 | 938.9 | 1,055 | 1,286 |
| Fees and commission income (not separately disclosed) | n.d. | n.d. | n.d. | |
| Other income (not separately disclosed) | n.d. | n.d. | n.d. | |
| Net interest income | 5,416 | 6,292 | 7,446 | 8,968 |
| Operating expenses including BPO | 4,933 | 4,935 | 4,869 | 5,408 |
| Pre-provision operating profit including BPO | 3,958 | 4,372 | 5,041 | 6,201 |
| Net total income including BPO | 8,891 | 9,307 | 9,910 | 11,610 |
| Balance sheet (₹ crore) | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Total equity | 11,437 | 13,743 | 15,820 | 20,664 |
| Debt securities, other borrowings and subordinated liabilities | 54,865 | 74,331 | 89,682 | 99,230 |
| Cash equivalents plus other bank balances | 653.8 | 702.5 | 984.3 | 1,674 |
| Trade receivables (net; BPO/insurance-commission, not loans) | 65.8 | 124.6 | 225.2 | 296.0 |
| Trade payables | 291.8 | 509.0 | 439.3 | 179.9 |
| Net property, plant and equipment * | 190.2 | 260.1 | 380.0 | 392.2 |
| Capital work in progress * | 39.7 | 8.26 | ||
| Total assets | 70,050 | 92,557 | 1,08,663 | 1,23,651 |
| Net loans on balance sheet | 66,383 | 86,721 | 1,03,343 | 1,14,690 |
| Cash flow (₹ crore) | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Net cash from operating activities | -12,625 | -24,166 | -13,626 | -8,606 |
| Free cash flow (vendor definition) * | -6,962 | -16,859 | -13,836 | -8,749 |
| Dividends paid (cash outflow) | -150.3 | -245.4 | -238.1 | -245.5 |
| Purchase of fixed assets (cash outflow) | -109.8 | -122.2 | -209.8 | -143.6 |
| Other reported lines (₹ crore) | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Issued equity shares including employee trust | 79.14 | 79.31 | 79.58 | 83.03 |
| ESOP shares exercised during fiscal year | 0.27 | 0.08 | ||
| ESOP grants during fiscal year (crore shares) | 0.34 | |||
| Weighted average diluted shares (EPS denominator) | 79.15 | 79.28 | 79.65 | 82.38 |
| Quarterly profit and loss (₹ crore) | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|---|---|---|---|
| Total revenue from operations | 4,144 | 4,266 | 4,465 | 4,545 | 4,674 | 4,745 | 4,938 | |
| Cost of revenue (vendor classification) * | 2,548 | 2,581 | 2,729 | 2,653 | 2,789 | |||
| Other operating costs (vendor classification) * | 270.4 | 292.8 | 320.5 | 342.3 | 342.2 | |||
| EBITDA (vendor classification) * | 1,947 | 2,012 | 2,322 | 2,421 | 2,481 | |||
| EBIT * | 1,270 | 1,331 | 1,565 | 1,689 | 1,741 | |||
| Profit before tax | 640.8 | 704.2 | 732.5 | 782.2 | 860.3 | 1,011 | 1,055 | |
| Total tax expense including prior-year tax | 168.5 | 173.3 | 164.8 | 200.8 | 216.4 | 260.6 | 269.9 | |
| Net profit for period/year | 472.3 | 530.9 | 567.7 | 581.4 | 643.9 | 750.6 | 785.2 | |
| Diluted EPS (INR; interim not annualised) | 5.93 | 6.65 | 7.11 | 6.98 | 7.74 | 9.02 | 9.43 | |
| Interest income | 3,517 | 3,623 | 3,832 | 3,887 | 3,989 | 4,081 | 4,262 | 4,351 |
| Other financial charges plus fair-value and derecognition gains | 321.3 | 339.5 | 330.0 | 338.6 | 378.3 | 370.6 | 363.0 | |
| Sale of services (gross BPO income) | 305.4 | 303.3 | 303.9 | 320.3 | 306.2 | 293.5 | 312.9 | |
| Finance cost | 1,645 | 1,651 | 1,740 | 1,694 | 1,704 | 1,683 | 1,753 | 1,817 |
| Impairment of financial instruments | 635.7 | 633.8 | 669.7 | 748.3 | 712.2 | 684.6 | 697.1 | 729.9 |
| Employee benefits expense | 903.3 | 930.9 | 960.1 | 957.7 | 1,025 | 970.5 | 1,035 | 1,016 |
| Depreciation amortisation and impairment | 48.6 | 53.8 | 51.4 | 52.4 | 51.2 | 54.3 | 54.8 | 57.4 |
| Other expenses | 270.4 | 292.8 | 312.0 | 310.8 | 320.5 | 342.3 | 342.2 | 340.8 |
| Fees and commission income (not separately disclosed) | n.d. | n.d. | n.d. | n.d. | n.d. | n.d. | n.d. | |
| Other income (not separately disclosed) | n.d. | n.d. | n.d. | n.d. | n.d. | n.d. | n.d. | |
| Net interest income | 1,872 | 1,973 | 2,092 | 2,193 | 2,285 | 2,399 | 2,509 | |
| Operating expenses including BPO | 1,222 | 1,278 | 1,324 | 1,321 | 1,397 | 1,367 | 1,432 | |
| Pre-provision operating profit including BPO | 1,277 | 1,338 | 1,402 | 1,531 | 1,573 | 1,696 | 1,752 | |
| Net total income including BPO | 2,499 | 2,616 | 2,726 | 2,851 | 2,970 | 3,063 | 3,185 |
Standalone, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue growth | 14.3% | 15.0% | 13.1% | |
| Net margin | 15.8% | 17.4% | 13.3% | 13.8% |
| Return on equity | 17.1% | 19.5% | 14.7% | 13.9% |
| Return on assets | 2.8% | 3.0% | 2.2% | 2.2% |
| Dividend payout | 7.7% | 10.0% | 10.9% | 9.7% |
| EPS, diluted (₹) | 24.76 | 31.04 | 27.32 | 30.88 |
| Book value per share (₹) | 144.5 | 173.3 | 198.8 | 248.9 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS (INR)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 3, information to 14 Oct 2026); market data at the close of 14 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
With Individual or above
What the full research on HDB Financial Services includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
See Mool’s call and the full research
Individual or above opens every piece of research Mool has published. A new account can start with 10 days of Pro, or of Firm on a work email address. No card needed.
Report history
Reports on HDB Financial Services
- Research reportLatest
- Research report
- Research report
Same sector
More research in Financial Services
ICICI Bank Limited
NSE: ICICIBANK
Financial Services · Banks - Regional
₹1,394.20 last close on 23 Oct 2026 −0.31%Research updated
State Bank of India
NSE: SBIN
Financial Services · Banks - Regional
₹958.60 last close on 23 Oct 2026 −1.18%Research updated
Bajaj Finance Ltd.
NSE: BAJFINANCE
Financial Services · Credit Services
₹928.95 last close on 23 Oct 2026 −1.40%Research updated
Life Insurance Corporation of India
NSE: LICI
Financial Services · Insurance - Life
₹381.50 last close on 23 Oct 2026 −1.55%Research updated
Kotak Mahindra Bank Ltd.
NSE: KOTAKBANK
Financial Services · Banks - Regional
₹430.50 last close on 23 Oct 2026 −1.49%Research updated
Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 14 Oct 2026; page updated 25 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.