HDB Financial Services Ltd. reported a net profit after tax of ₹780 crore for the September‑December quarter, a 0.6% drop from the ₹784 crore posted in the prior quarter and a 34.2% lift from ₹581 crore a year earlier. The figure fell 2% short of Nomura’s ₹794 crore estimate, tightening the margin for a company that has long been a staple in the HDFC Bank unit’s income stream.
Pre‑provision operating profit climbed to ₹1,756 crore, up 1.7% sequentially and 16.9% YoY, while net interest income edged up 1% to ₹2,543 crore, a 15.6% rise from ₹2,192 crore last year. The gross loan book expanded to ₹1.24 lakh crore, an 11% year‑on‑year increase, underscoring the bank’s growing asset base.
Asset quality took a hit, with gross NPA rising to 2.43% from 2.34% in June and net interest margin settling at 8.23%, 12 basis points lower than the June figure but 28 basis points higher than the year‑ago 7.95%. Management forecasts an accelerated AUM growth of 17‑18% over the next 12–18 months and a near‑term NIM target of 8.2%, expecting the metric to stay above 8% long‑term.
The stock, which slipped 7% to ₹544.8, is now 26% below its ₹740 issue price and 33.5% off its ₹835 listing price. Nomura lifted its rating to buy from neutral, setting a ₹790 target that represents a 35.3% upside from today’s close, while analysts project a 17‑18% asset‑growth trajectory and a credit cost guidance of around 2.3%.