HDB FINANC SER Q2 FY27 Results (NSE: HDBFS)
Signal: Earnings grew
The read
The earnings trajectory remains positive: PAT of ₹780 crore was broadly stable versus the ₹785 crore Q1FY27 record while YoY growth moderated to 34.2% from 38.3%; the key support was lower provisions at ₹730 crore and improved gross Stage 3 at 2.43%, although sequential NIM declined 20bps to 8.2% and credit cost rose 10bps to 2.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,188 Cr | 11.8% | N/A |
| EBIT | ₹1,774 Cr | 15.9% | |
| Net profit | ₹780 Cr | 34.2% | |
| EPS | ₹9.4 | 34.3% | |
| EBIT margin | 0% |
P&L walk
Net interest income rose 15.6% to ₹2,534 crore and pre-provisioning operating profit grew 15.9% to ₹1,774 crore; PAT accelerated 34.2% to ₹780 crore as loan losses and provisions fell 2.5% to ₹730 crore.
Key positives
- PAT rose 34.2% YoY to ₹780 crore, substantially faster than AUM growth of 11.6%, supported by provisions declining 2.5% to ₹730 crore.
- Net interest income grew 15.6% to ₹2,534 crore versus AUM growth of 11.6%, while NIM expanded 30bps YoY to 8.2%.
- Asset quality improved YoY: gross Stage 3 declined to 2.43% from 2.81% and net Stage 3 to 1.09% from 1.27%.
- Disbursements increased 18.7% YoY to ₹18,522 crore, ahead of AUM growth and indicating continued origination momentum.
Key concerns
- NIM declined 20bps sequentially from 8.4% in Q1FY27 to 8.2%, while credit cost increased from 2.3% to 2.4%.
- PAT of ₹780 crore was ₹5 crore below the ₹785 crore Q1FY27 level, and EPS declined from ₹9.5 to ₹9.4 sequentially.
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