HDB Financial Services Q3 net profit surges 36% on higher NII and loan growth

Leading non-banking financial company HDB Financial Services Ltd on Wednesday (January 14) reported a 36.3% year-on-year (YoY) increase in net profit at ₹644 crore, compared with ₹472 crore in the corresponding

quarter last year.

Net interest income (NII) for the quarter increased 22.1% year-on-year to ₹2,285 crore against ₹1,872 crore in the same period a year ago. Net total income rose 18.8% YoY to ₹2,970 crore from ₹2,499 crore.

The company reported a 12% growth in assets under management (AUM) at ₹1,14,853 crore from ₹1,02,514 crore in the year-ago quarter. Total gross loans for Q3FY26 stood at ₹1,14,577 crore, up from ₹1,02,097 crore a year earlier, registering a growth of 12.2%.

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Employee benefit expense during the quarter included a provision of ₹61 crore on account of the new labour codes, of which ₹56 crore related to the lending business. Pre-provisioning operating profit for the quarter grew 23.2% year-on-year to ₹1,573 crore, compared with ₹1,276 crore. Loan losses and provisions stood at ₹712 crore, up 12% from ₹636 crore in the corresponding quarter last year.

Profit before tax for the quarter rose 34.3% to ₹860 crore from ₹641 crore. For the nine months ended December 31, 2025, profit after tax stood at ₹1,793 crore, compared with ₹1,645 crore in the corresponding period of the previous year, reflecting a growth of 9%.

Gross stage 3 loans were at 2.81% as of December 31, 2025, compared with 2.25% a year earlier, while net stage 3 loans stood at 1.25% versus 0.90% in the quarter ended December 31, 2024. Provision coverage on stage 3 assets was at 55.59%, compared with 60.02% in the year-ago quarter.

Shares of HDB Financial Services Ltd ended at ₹763.45, down by ₹4.55, or 0.59%, on the BSE today, January 14.

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