HDB FINANC SER Q1 FY27 Results (NSE: HDBFS)
Signal: Earnings grew
The read
HDBFS delivered a strong quarter with PAT at ₹785 Cr (+38% YoY), driven by NIM expansion to 8.4% (from 7.7% a year ago) and controlled credit costs at 2.3%. Asset quality continued to improve with Gross Stage 3 down to 2.34%. The quarter marks the highest ever quarterly PAT, with momentum supported by AUM growth of 11.3% YoY and disbursement growth of 16.2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,206 Cr | 15.1% | 6.0% |
| Net profit | ₹785 Cr | 38.3% | |
| EPS | ₹9.5 | ||
| EBIT margin | 0% |
P&L walk
Revenue growth of 15.1% YoY driven by interest income expansion, while opex grew 14.2% leading to steady operational leverage; reported PAT (press release) surged 38.3% YoY as credit costs remained controlled and NIM widened.
Key positives
- Highest ever quarterly PAT of ₹785 Cr, up 38.3% YoY
- NIM expanded 70bps YoY to 8.4%
- Asset quality improvement: GNPA 2.34% vs 2.56% YoY
- Disbursements grew 16.2% YoY to ₹17,629 Cr
Key concerns
- Credit cost stable at 2.3% but remains elevated in absolute terms
- Provision coverage declined from 56.70% to 55.73%
- Net total income growth of 16.8% lagged PAT growth due to operating leverage
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