HDB Financial Services Q2 Results: Net interest income up 20%, declares dividend

NBFC major HDB Financial Services Ltd. announced its Q2 FY26 earnings after market hours on Friday, October 15. The company reported a net profit of ₹581 crore, down 1.6% from ₹591 crore in the same period last year.

Net interest income (NII) rose 19.7% to ₹2,193 crore from ₹1,832 crore, while net total income grew 18.4% to ₹2,851 crore.

Analysts had expected the company’s net interest margins (NIMs) to expand 10–12 basis points year-on-year from the current 7.7%.

Pre-provisioning operating profit jumped

24.4% to ₹1,530 crore.

Loan losses and provisions increased to ₹748 crore from ₹431 crore in the same quarter last year, while the provision coverage on stage 3 assets stood at 54.73%, down from 60.69% a year ago.

The company’s asset under management (AUM) rose 12.8% to ₹1,11,721 crore, and total gross loans increased 13.0% to ₹1,11,409 crore.

HDB Financial’s Board of Directors also declared an interim dividend of ₹2 per share, or 20% of the face value, for FY26. The record date for the dividend is Friday, October 24, 2025.

Shares of HDB Financial had briefly rebounded from their IPO price on the day of the RBI Monetary Policy on October 1, following remarks by Governor Sanjay Malhotra that eased concerns over prudential regulations limiting business overlaps between banks and group entities.

Despite a 2.5% surge that day, the stock fell for five consecutive sessions before stabilising. HDB Financial’s shares closed at ₹742.40 on Friday, little changed as the market digested the results.