HDB Financial profit rises 34% in Q2 FY27

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 HDB Financial Services Limited (

) reported a 34% year-on-year increase in net profit to ₹780 crore in Q2 FY27. Revenue from operations rose 10% to ₹5,005 crore. What happened? Net interest income grew 15.6% to ₹2,534 crore. Net interest margin improved to 8.23% from 7.95% a year earlier, while credit costs declined 2.5% to ₹730 crore. The gross loan book grew around 12% to ₹1.24 lakh crore. Disbursements increased 19% to ₹18,522 crore, and the customer base expanded to 24.8 million. The company also declared an interim dividend of ₹2 per share. Why does it matter? Higher lending activity and lower credit costs supported profit growth. However, gross NPAs increased slightly from the previous quarter, making asset quality important to monitor. My view Profit growth is encouraging, but sustained performance will depend on balancing loan expansion with credit quality and funding costs. What I am watching next I would track disbursements, net interest margins, credit costs and gross NPAs to assess whether growth remains sustainable. No Recommendations Source: Economic Times Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in HDB Financial Services Limited.