NBFC reports mixed performance in its first quarterly earnings post listing; profit margin shrinks even as topline expands.
HDB Financial Services Ltd on July 15 reported a 2.4% YoY drop in net profit to ₹568 crore for the first quarter of FY26, marking its first-ever quarterly results since listing on Indian bourses earlier this month. The non-banking financial company (NBFC) had posted a profit of ₹582 crore in Q1 FY25.
Revenue from operations, however, rose 15% year-on-year to ₹4,465 crore, compared to ₹3,884 crore a year ago, driven by healthy loan growth and fee income, though margin pressures and asset quality challenges seem to have moderated bottom-line gains.
Net profit: ₹568 crore (↓ 2.4% YoY)
Revenue from operations: ₹4,465 crore (↑ 15% YoY)
Net profit margin: 12.72% vs 14.98% YoY
Gross NPA: 2.56% | Net NPA: 1.11%
Also Read: IDFC First Bank Falls 6% in 5 Days as UBS Flags Growth Headwinds
First Post-IPO Earnings Reflect Pressure on Margins, Asset Quality
The Q1 FY26 results come close on the heels of the company’s blockbuster ₹12,500-crore IPO, which was subscribed 16.69 times and debuted at a 13% premium to issue price, propelling HDB into the top 10 NBFCs by market cap with a valuation near ₹70,000 crore.
While the revenue surge aligns with broader NBFC sector trends amid stronger retail credit demand, the dip in profit and fall in net profit margin to 12.72% from 14.98% signals rising operational costs or provisioning pressure.
Asset quality remains relatively stable, but gross NPA at 2.56% and net NPA at 1.11% suggest room for further cleanup amid a rising rate environment and potential delinquencies in the consumer portfolio.
IPO size: ₹12,500 crore | Subscription: 16.69x
Listing premium: 13% | Current m-cap: ₹70,000 crore
Sector rank: 8th largest NBFC by market cap
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Trading Focus Ahead, Margin Clarity, NPA Trends Key
Despite a stellar IPO debut, investors will now shift focus to earnings consistency and asset quality trajectory in upcoming quarters. Market participants will watch for any management commentary around margin compression, NIM outlook, and portfolio mix adjustments, especially in unsecured retail credit and SME lending.
Technically, ₹650–₹670 range could act as near-term support, while resistance may emerge near ₹720–₹740, especially after the post-listing euphoria fades.
Watchlist:
HDB Financial Services (₹690–₹700) – Post-IPO base building with earnings triggers
Bajaj Finance, Cholamandalam Finance – Peer benchmarks in retail NBFC performance
Nifty Financial Services Index – Sector sentiment indicator for broader NBFC moves
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