Hdb Financial Services Limited · NSE:HDBFS
Hdb Financial Services — Q2 FY26 Earnings Presentation
50 slides from Hdb Financial Services's earnings presentation, Oct 15, 2025
Slide 1: Cover letter to stock exchanges
HDB Financial Services Limited HDB House, Tukaram Sandam Marg, A - Subhash Road, Vile Parle (E), Mumbai – 400057. Web: www.hdbfs.com Tel: 022 – 4911 6350 Fax: 022 – 4911 6666 CIN: L65993GJ2007PLC051028 Email: investorcommunications@hdbfs.com HDB/SLC/2025/1386 October 15, 2025 To, To, Listing Complia
Slide 2: Q2 FY26 Earnings Presentation
Q2 FY26 Earnings Presentation October 15, 2025
Slide 3: Presentation Path
Presentation Path 01 03 05 07 BORROWINGS HDB SUSTAINABILITY ABOUT HDB & CAPITAL OVERVIEW INITIATIVES STRUCTURE TECHNOLOGY & EXECUTIVE FINANCIAL RISK SUMMARY – PERFORMANCE MANAGEMENT Q2FY26 – Q2FY26 FRAMEWORK 02 04 06 HDB Financial Services Presentation Q2 FY2026 2
Slide 4: About HDB
Section 1 1 HDB – Snapshot 2 The Essence of HDB – Our Vision, Mission and Values About HDB 3 Our Journey • 17 HDB Financial Services Presentation Q2 FY2026 3
Slide 5: HDB – Snapshot
HDB – Snapshot • We are a subsidiary of HDFC Bank, which is the largest private sector bank in India • HDBFS is licensed by RBI as a Non-Banking Finance Company (“NBFC”) • Classified as an ‘Upper Layer’ NBFC • Strong and reliable financial institution which is independently funded - its long-term de
Slide 6: The Essence of HDB … What we stand for
The Essence of HDB … What we stand for Best in class Governance practices embedded over the years through a pedigreed parentage Focused on prudent, purposeful, resilient growth which is rooted in values Our Foundational Pillars – People | Processes | Products | Partnerships At the heart of everythin
Slide 7: The Essence of HDB … Our Vision and Mission
The Essence of HDB … Our Vision and Mission • 17 HDB Financial Services Presentation Q2 FY2026 6
Slide 8: The Essence of HDB … Our Values
The Essence of HDB … Our Values Integrity Collaboration Agility We ensure that the highest standard of professional We believe that success is achieved not by any one We proactively respond to the changing market conduct is embedded in every corner of the individual but by teams that work together.
Slide 9: Our Journey
Our Journey Established Opened first Branch count AUM Branch count AUM AUM Listed on as branch in crossed 100 crossed INR crossed 1,000 crossed INR crossed INR Stock subsidiary of Chennai 100,000 MM 500,000 MM 1 Trillion exchanges HDFC Bank CARE AAA NSE: HDBFS rating for BSE: 544429 NCDs 2007 2008 2
Slide 10: Executive Summary Q2FY26
Section 2 1 Key Parameters Executive Summary Q2FY26 2 Key Highlights – Q2FY26 & H1FY26 • 17 HDB Financial Services Presentation Q2 FY2026 9
Slide 11: Key Parameters – Q2 FY26
Key Parameters – Q2 FY26 Total Gross Loans Net Interest Margin: 7.9% ₹ 1,11,409 Cr Q2 PAT Gross NPA: 2.81% ₹ 581 Cr Net NPA : 1.27% Return on Assets: 1.9% Earnings/share : ₹ 7.0 Return on Equity : 12.2% Book Value/share: ₹ 233.1 1,749 Branches across 21.0 MM Customers 1,157 Cities/ Towns HDB Financi
Slide 12: Key Highlights – Q2 FY26 & H1FY26 (1/3)
Key Highlights – Q2 FY26 & H1FY26 (1/3) Business metrics Customer franchise grew to 21.0 million with an increase of 4.2% during the quarter and 19.6% Y-o-Y The total gross loans as on September 30, 2025 stood at ₹1,11,409 crores, growing 1.9% sequentially and 13.0% Y-o-Y. Secured loans comprise
Slide 13: Key Highlights – Q2 FY26 & H1FY26 (2/3)
Key Highlights – Q2 FY26 & H1FY26 (2/3) P&L Metrics (contd…) Credit Cost for the quarter was ₹748 crores as against ₹670 crores for the prior quarter and ₹431 crores for the quarter ended September 30, 2024; Credit Cost for half year ended September 30, 2025 was ₹1,418 crores as against ₹843 crore
Slide 14: Key Highlights – Q2 FY26 & H1FY26 (3/3)
Key Highlights – Q2 FY26 & H1FY26 (3/3) Return Metrics RoA (annualized) for the quarter ended September 30, 2025 stood at 1.93%, which includes opening assets of approximately ₹9,000 crore of OFS money as on June 30, 2025. Adjusted for this, the RoA would be 2.02% RoA (annualized) for the H1FY26
Slide 15: HDB Overview
Section 3 1 HDB – At a Glance 2 Key Metrics 3 Product Portfolio & Loan Book Mix HDB Overview 4 Distribution Network 5 Customer Franchise • 17 HDB Financial Services Presentation Q2 FY2026 14
Slide 16: HDB at a glance
HDB at a glance Key Metrics (Q2FY26) One of the leading, diversified retail-focused NBFCs in India INR 1,114 Bn 21.0MM Total Customers Product portfolio serving multiple credit needs of customers across Gross Loans INR 5.8 Bn three business verticals: Enterprise Lending, Asset Finance and Consumer
Slide 17: Key Metrics
Key Metrics Profitability and Scale Growth (QoQ/YoY) Asset Quality Returns INR 1,114 Bn 1.9% / 13.0% 2.81% INR 5.8 Bn Total Gross Loans Total Gross Loans Growth GNPA PAT 21.0 MM 2.4% / -1.6% 1.27% 1.9% Customers PAT Growth NNPA RoA* 1,749 4.2% / 19.6% 2.7% 12.2% Credit Cost* Branches Customers Growt
Slide 18: Product Portfolio
Product Portfolio ATS1 (INR) Avg. Tenor1 Customer Segment Products Loan Against Enterprise Business Loan Salaried Gold Loans Enterprise Property Business Loan Personal Loan Lending 4.5MM ~10 yrs 1.2MM ~9 yrs 293K ~4 yrs 330K ~5 yrs 197K ~3 yrs INR 1,114 BN2 Commercial Vehicle Loans Construction Equi
Slide 19: Loan Book Mix
Loan Book Mix Product Mix Geographic Mix Micro Lending Tamil Nadu Relationship PL Uttar 2W Loans 8% 0% Pradesh 12% Auto Loans Loan Against Maharashtra 3% 22% 13% (Used) Property 2% 9% Auto Loans (New) 6% Others Uttarakhand 2% Consumer 1% Enterprise Chhattisgarh 1% Rajasthan Durables 4% Odisha 2% 8%
Slide 20: Omni-Channel Distribution with Pan-India Branch Network
Omni-Channel Distribution with Pan-India Branch Network Pan India Presence With Focus on Expansion in Tier-2+ Markets(1) Wide Distribution Presence(1) Strong Presence Beyond Metro 4 Jammu & Kashmir Markets (1) 1,749 31 Tier 1 Branches States and UTs 11% Tier 2 56 Punjab 17 9% Himachal 4 Pradesh Tier
Slide 21: Customer Franchise
Customer Franchise Customer Franchise Growth New Customers Added (MM) Granular Loan Book… …With a Low Customer Concentration 21.0 1.7x 19.2 15.8 ~INR ~0.32% 12.2 165,000 Average Ticket Size of of Total Gross Loan Book from 20 Overall Loan Book Largest Customers Mar-23 Mar-24 Mar-25 Sep-25 HDB Financ
Slide 22: Financial Performance Q2FY26
Section 4 1 Disbursement & Total Gross Loans Mix 2 P&L and Balance Sheet Financial Performance 3 Return Metrics Q2FY26 4 Asset Quality 5 Performance through the years • 17 HDB Financial Services Presentation Q2 FY2026 21
Slide 23: Disbursement and Total Gross Loans Mix
Disbursement and Total Gross Loans Mix Disbursements Total Gross Loans INR Crores INR Crores 17,643 109,342 111,409 106,878 16,273 102,097 15,685 15,599 98,624 15,171 23.6% 22.7% 23.5% 34.8% 22.9% 22.8% 38.6% 39.2% 39.8% 45.0% 38.0% 37.8% 38.0% 37.4% 37.6% 34.9% 32.4% 34.3% 32.4% 29.1% 39.8% 39.4% 3
Slide 24: Profit & Loss Statement
Profit & Loss Statement INR Crores Particulars Q2FY25 Q1FY26 Q2FY26 QoQ YoY H1FY25 H1FY26 YoY Total Gross Loans 98,264 1,09,342 1,11,409 1.9% 13.0% 98,264 1,11,409 13.0% Interest income 3,431 3,832 3,887 1.4% 13.3% 6,696 7,718 15.3% Finance cost 1,598 1,740 1,694 -2.6% 6.0% 3,095 3,434 10.9% Net Int
Slide 25: Balance Sheet
Balance Sheet INR Crores Particulars March’25 September’25 Cash and cash equivalents 950 1,138 Bank balances other than above 34 207 Derivative financial instruments 108 477 Trade receivables 225 252 Loans (Net) 1,03,343 1,07,759 Investments 2,060 3,076 Other financial assets 48 47 Deferred tax asse
Slide 26: Income Metrics – Lending Business
Income Metrics – Lending Business Net Interest Income Net Total Income INR Crores INR Crores 2,192 2,092 QoQ 4.8% QoQ 4.5% 2,422 2,531 1,833 YoY 19.6% YoY 19.8% 2,113 Sep-24 Jun-25 Sep-25 Sep-24 Jun-25 Sep-25 Yield, COF & NIM (%) Non-Interest Income INR Crores 7.7 7.9 7.5 14.1 14.2 14.1 QoQ 2.6% 330
Slide 27: Operating Expenses – Lending Business
Operating Expenses – Lending Business Operating Expenses Cost-to-Income Ratio INR Crores 1,033 1,029 42.7% 42.7% 903 349 350 40.7% 286 Sep-24 Jun-25 Sep-25 Opex to Total Gross Loans (annualized) 685 679 618 3.8% 3.7% 3.7% Sep-24 Jun-25 Sep-25 Employee Cost Other Operating Expenses Sep-24 Jun-25 Sep-
Slide 28: Profitability Metrics
Profitability Metrics Pre-Provisioning Operating Profit (Lending) Profit Before Tax INR Crores INR Crores 799 733 782 20 29 14 QoQ 8.2% QoQ 6.8% 1,388 1,502 1,210 YoY 24.1% 779 719 753 YoY -2.1% Sep-24 Jun-25 Sep-25 Sep-24 Jun-25 Sep-25 Lending BPO Services Profit After Tax INR Crores QoQ 2.4% 591 5
Slide 29: Return Metrics
Return Metrics Return on Assets Return on Equity 2.4% 16.2% 2.0% 1.9% 1.9% 1.8% 13.6% 13.2% 12.5% 12.2% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Earnings Per Share Book Value Per Share INR INR 7.4 7.1 7.0 225.4 233.1 6.7 193.0 198.8 5.9 187.4 Sep-24 Dec-24 Mar-25 Jun-25
Slide 30: Asset Quality
Asset Quality Credit Cost Loan Book Staging INR Crores INR Crores Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 2.5% 2.7% 1.8% Stage-wise Loan Book Total Gross Loans 98,624 1,02,097 1,06,878 1,09,342 1,11,409 Stage 1 94,483 97,707 1,02,735 1,04,106 1,05,794 QoQ 11.7% Stage 2 2,068 2,096 1,729 2,442 2,489 748 6
Slide 31: Performance Through The Years
Performance Through The Years 3 Yr 10 Yr Financial Snapshot (INR Crores) FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR CAGR AUM 19,290 25,906 34,277 44,469 55,425 58,833 61,561 61,444 70,084 90,235 107,262 20.4% 18.7% Total Income (Lending) 2,453 3,222 4,380 5,533 7,077 8,643 8,924 8,9
Slide 32: Borrowings & Capital Structure
Section 5 1 Liability Franchise 2 Capital & Liquidity Metrics Borrowings & Capital Structure 3 Balance Sheet and Capital Productivity 4 Shareholding Pattern • 17 HDB Financial Services Presentation Q2 FY2026 31
Slide 33: Liability Franchise
Liability Franchise Liabilities Break-up Borrowings Overview As on Sep-25 INR Crores 5.9x 5.8x 5.9x 5.1x 4.9x Perpetual debt, 1.6% Commercial paper, 2.3% Securitsation, 1.9% Sub debt, 5.4% 91,472 90,541 External Commercial Borrowings, 87,398 11.2% Term loans and Working Capital 83,681 Demand Loans,
Slide 34: Capital & Liquidity Metrics
Capital & Liquidity Metrics LCR 198% 157% 161% 151% 174% CRAR 19.30% 19.20% 19.22% 20.18% 21.82% 4.56% Tier-II Capital 4.47% 4.66% 4.78% 4.55% 17.26% Tier-I Capital 14.64% 14.67% 15.71% 14.42% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 HDB Financial Services Presentation Q2 FY2026 33
Slide 35: Asset Liability Management – September 2025
Asset Liability Management – September 2025 INR Crores Inflows Outflows Over one Less than one Over 2 months Over 3 Months Over 6 Months Over 1 year Over 2 year Over 3 years Particulars month to 2 Over 5 years month to 3 months upto 6 months upto 1 year upto 2 years upto 3 years upto 5 years months
Slide 36: Balance Sheet and Capital Productivity
Balance Sheet and Capital Productivity Total Gross Loans and RoA INR Crores 1,30,000 2.1% 2.4% 2.4% 2.4% 2.3% 1.7% 3.0% 3.0% 2.2% 3.5% 1.6% 1,10,000 0.6% 90,000 70,000 -1.5% 50,000 30,000 10,000 -6.5% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Loan Book RoA % Capital Position and RoE 25.
Slide 37: Shareholding Pattern
Shareholding Pattern Top Institutional Holdings: Domestic Nippon MFs Kotak MFs SBI MFs Promoter Group, Mirae MFs 74.2% Institutional Franklin Templeton MFs Investors, 14.1% Top Institutional Holdings: Foreign Baillie Gifford Morgan Stanley Retail & Others, 11.7% BNP Paribas Blackrock Notes: Amundi F
Slide 38: Technology & Risk Management Framework
Section 6 1 Technology Stack Technology & Risk Management 2 Digital Capability Framework 3 Risk Management Framework • 17 HDB Financial Services Presentation Q2 FY2026 37
Slide 39: Technology Stack Ecosystem
Technology Stack Verification & Engagement Underwriting Documentation Servicing Disbursement Reducing Onboarding Enhanced Underwriting Faster & Safer Collections Centralized view of Minimizing Need For Time And Improving Capabilities By Larger By Directly Accessing the customer improving Customer To
Slide 40: Digital Capabilities – HDB OnTheGo App
Digital Capabilities – “HDB OnTheGo” App DAU: Daily active users HDB Financial Services Presentation Q2 FY2026 39
Slide 41: Risk Management Framework
Risk Management Framework Business / Information Operational Risk Reputation Risk Credit Risk Interest Rate Risk Liquidity Risk Compliance Risk Technology Risk Strategic Risk Security Risk Mange risks via Operational Risk Manage risks Manage risks by Manage risks by Asset Liability Manage, identif
Slide 42: Sustainability Initiatives
Section 7 1 Environment, Social & Governance (ESG) Sustainability Initiatives 2 Corporate Social Responsibility (CSR) • 17 HDB Financial Services Presentation Q2 FY2026 41
Slide 43: ESG Framework
ESG Framework Integrate ESG Ideology: Embedding the Company’s ESG ideology and identifying ESG related risks and adverse incidents that can the affect business operations Ethical Conduct: Conduct business ethically having value driven approach in decision making Stakeholder Commitment: Demonstrat
Slide 44: ESG Priorities
ESG Priorities Climate & Sustainable People and Customer Social Stakeholder Good Resources Sourcing Culture Focus Impact Trust Governance HDB Financial Services Presentation Q2 FY2026 43
Slide 45: ESG Highlights
ESG Highlights ENVIRONMENT SOCIAL 1 Achieved ISO 27001:2022 Certification for a robust Information Security Management System Launched "TRINETRA" (IT Command Centre) to strengthen our technology operations and Cybersecurity posture 4 2 ESG & CSR committee at the Board level and ESG policy framework
Slide 46: Corporate Social Responsibility
Corporate Social Responsibility ₹ 2250 Mn+ Spent on CSR Initiatives 100+ Social & Environmental Projects Supported 75 On-boarded Partners 1.5 Mn+ Lives Touched 500K+ Trees Planted 160+ Lakes Restored Notes: Figures since inception HDB Financial Services Presentation Q2 FY2026 45
Slide 47: CSR: Intervention Themes
CSR: Intervention Themes Environment (Water + Waste + Plantation) Reviving Depleting Lakes Building Water Harvesting Structures Promoting Waste Management Tree Plantation Drives Healthcare (Preventive + Curative + Capacity) Physiotherapy for Truck Drivers Maternal Child Health & Nutrition Free OPD S
Slide 48: Safe Harbour Statement
Safe Harbour Statement Certain statements are included in this release which contain words or phrases, such as ‘will’, ‘aim’, ‘will likely result’, ‘believe’, ‘expect’, ‘will continue’, ‘anticipate’, ‘estimate’, ‘intend’, ‘plan’, ‘contemplate’, ‘seek to’, ‘future’, ‘objective’, ‘goal’, ‘project’, ‘s
Slide 49: Thank You
Thank You For More Information please contact: Email: investorcommunications@hdbfs.com HDB Financial Services Presentation Q2 FY2026
Slide 50: Segment P&L Statement H1 FY26
Segment P&L Statement H1 FY26 INR Crores Particulars Lending BPO Total Interest income 7,718 - 7,718 Finance cost 3,434 - 3,434 Net Interest Income 4,284 - 4,284 Non Interest Income 669 624 1,293 Net Income 4,953 624 5,577 Employee cost 1,364 554 1,918 Other Operating Expenses 699 28 727 Total expen
HDB Financial Services — Q2 FY26 Earnings Presentation on 6ix