Hdb Financial Services Limited · NSE:HDBFS
Hdb Financial Services — Q1 FY2026 Earnings Presentation
46 slides from Hdb Financial Services's earnings presentation, Jul 15, 2025
Slide 1: Q1 FY26 Earnings Presentation
Q1 FY26 Earnings Presentation July 15, 2025
Slide 2: Presentation Path
Presentation Path 01 03 05 07 BORROWINGS HDB SUSTAINABILITY ABOUT HDB & CAPITAL OVERVIEW INITIATIVES STRUCTURE TECHNOLOGY & EXECUTIVE FINANCIAL RISK SUMMARY - PERFORMANCE MANAGEMENT Q1FY26 - Q1FY26 FRAMEWORK 02 04 06 HDB Financial Services Presentation Q1 FY2026 2
Slide 3: 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 Q1 FY2026 3
Slide 4: 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 5: 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 6: The Essence of HDB … Our Vision and Mission
The Essence of HDB … Our Vision and Mission • 17 HDB Financial Services Presentation Q1 FY2026 6
Slide 7: 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 8: 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 9: Executive Summary Q1FY26
Section 2 1 Key Parameters Executive Summary Q1FY26 2 Key Highlights – Q1FY26 • 17 HDB Financial Services Presentation Q1 FY2026 9
Slide 10: Key Parameters – Q1 FY26
Key Parameters – Q1 FY26 Total Gross Loans Net Interest Margin: 7.7% ₹ 1,09,342 Cr Q1 PAT Gross NPA: 2.56% ₹ 568 Cr Net NPA : 1.11% Return on Assets: 1.9% Earnings/share : ₹ 7.1 Return on Equity : 13.2% Book Value/share: ₹ 225.4 1,771 Branches across 20.1 MM Customers 1,166 Cities/ Towns HDB Financi
Slide 11: Key Highlights – Q1 FY26 (1/3)
Key Highlights – Q1 FY26 (1/3) Business metrics Customer franchise grew to 20.1 million with an increase of 5.0% during the quarter and 20.4% Y-o-Y The total gross loans as on June 30, 2025 stood at ₹109,342 crores, growing 2.3% sequentially and 14.3% Y-o-Y. Secured loans comprised 73% of the to
Slide 12: Key Highlights – Q1 FY26 (2/3)
Key Highlights – Q1 FY26 (2/3) P&L Metrics (contd…) Credit Cost for the quarter was ₹670 crores as against ₹634 crores for the prior quarter and ₹412 crores for the quarter ended June 30, 2024 In Q1FY26, our BPO services contributed ₹14 crores or 1.9% of our Total PBT Profit after tax for the
Slide 13: Key Highlights – Q1 FY26 (3/3)
Key Highlights – Q1 FY26 (3/3) Return Metrics The return metrics are after accounting for primary IPO proceeds of ₹2,500 crores as at June 30, 2025 RoA (annualized) for the quarter ended June 30, 2025 stood at 1.94%, which includes assets of approximately ₹9,000 crore of OFS money as on June 30,
Slide 14: HDB Overview
Section 3 1 HDB – At a Glance 2 Key Metrics 3 Product Portfolio HDB Overview 4 Distribution Network 5 Customer Franchise • 17 HDB Financial Services Presentation Q1 FY2026 14
Slide 15: HDB at a glance
HDB at a glance Key Metrics (Q1FY26) One of the leading, diversified retail-focused NBFCs in India INR 1,093 Bn 20.1MM Total Customers Product portfolio serving multiple credit needs of customers across Gross Loans INR 5.7 Bn three business verticals: Enterprise Lending, Asset Finance and Consumer
Slide 16: Key Metrics
Key Metrics Profitability and Scale Growth (QoQ/YoY) Asset Quality Returns INR 1,093 Bn 2.3% / 14.3% 2.56% INR 5.7 Bn Total Gross Loans Total Gross Loans Growth GNPA PAT 20.1 MM 7.0% / -2.4% 1.11% 1.9% Customers PAT Growth NNPA RoA* 1,771 5.0% / 20.4% 2.5% 13.2% Credit Cost* Branches Customers Growt
Slide 17: 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 4.4MM ~10 yrs 1.2MM ~8 yrs 290K ~4 yrs 321K ~5 yrs 181K ~3 yrs INR 1,093 BN2 Commercial Vehicle Loans Construction Equi
Slide 18: 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) 1,771 31 Tier 1 Branches States and UTs 12% Tier 2 57 Punjab 17 9% Himachal 4 Pradesh Tier
Slide 19: Customer Franchise
Customer Franchise Customer Franchise Growth New Customers Added (MM) Granular Loan Book… …With a Low Customer Concentration 1.6X 20.1 19.2 15.8 ~INR ~0.32% 12.2 164,000 Average Ticket Size of of Total Gross Loan Book from 20 Overall Loan Book Largest Customers Mar-23 Mar-24 Mar-25 Jun-25 HDB Financ
Slide 20: Financial Performance Q1FY26
Section 4 1 Disbursement & Total Gross Loans Mix 2 P&L Metrics Financial Performance 3 Return Metrics Q1FY26 4 Asset Quality 5 Performance through the years • 17 HDB Financial Services Presentation Q1 FY2026 20
Slide 21: Disbursement and Total Gross Loans Mix
Disbursement and Total Gross Loans Mix Disbursements Total Gross Loans INR Crores INR Crores 17,643 109,342 106,878 16,507 16,273 102,097 15,685 95,629 98,624 15,171 22.7% 23.5% 34.8% 22.9% 22.4% 22.8% 42.6% 38.6% 39.2% 45.0% 38.0% 37.8% 37.4% 37.6% 37.7% 34.9% 31.4% 32.4% 34.3% 29.1% 40.0% 39.8% 39
Slide 22: Profit & Loss Statement Q1FY26
Profit & Loss Statement Q1FY26 INR Crores Particulars Q1FY25 Q4FY25 Q1FY26 QoQ YoY Total Gross Loans 95,629 1,06,878 1,09,342 2.3% 14.3% Interest income 3,265 3,623 3,832 5.7% 17.4% Finance cost 1,496 1,651 1,740 5.4% 16.3% Net Interest Income 1,768 1,973 2,092 6.0% 18.3% Non Interest Income 306 340
Slide 23: Income Metrics – Lending Business
Income Metrics – Lending Business Net Interest Income Net Total Income INR Crores INR Crores 2,092 1,973 QoQ 6.0% 2,422 QoQ 4.7% 2,312 1,768 YoY 18.3% 2,074 YoY 16.8% Jun-24 Mar-25 Jun-25 Jun-24 Mar-25 Jun-25 Yield, COF & NIM (%) Non Interest Income INR Crores 7.6 7.6 7.7 14.1 13.9 14.2 QoQ -2.8% 34
Slide 24: Operating Expenses – Lending Business
Operating Expenses – Lending Business Operating Expenses Cost-to-Income Ratio INR Crores 1,033 992 896 43.2% 42.9% 42.7% 349 332 273 Jun-24 Mar-25 Jun-25 Opex to Total Gross Loans (annualized) 660 685 622 3.9% 3.8% 3.8% Jun-24 Mar-25 Jun-25 Employee Cost Other Operating Expenses Jun-24 Mar-25 Jun-25
Slide 25: Profitability Metrics
Profitability Metrics Pre-Provisioning Operating Profit (Lending) Profit Before Tax INR Crores INR Crores 784 733 18 704 18 14 QoQ 5.1% QoQ 4.0% 1,320 1,388 766 YoY -6.5% 1,179 YoY 17.8% 687 719 Jun-24 Mar-25 Jun-25 Jun-24 Mar-25 Jun-25 Lending BPO Services Profit After Tax INR Crores QoQ 7.0% 582 5
Slide 26: Return Metrics
Return Metrics Return on Assets Return on Equity 2.4% 2.4% 16.6% 16.2% 2.0% 1.9% 13.6% 13.2% 1.8% 12.5% Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Earnings Per Share Book Value Per Share INR INR 7.3 7.4 7.1 225.4 6.7 193.0 198.8 5.9 179.8 187.4 Jun-24 Sep-24 Dec-24 Mar-25
Slide 27: Asset Quality
Asset Quality Credit Cost Loan Book Staging INR Crores INR Crores 1.8% 2.4% 2.5% Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Stage-wise Loan Book Total Gross Loans 95,629 98,624 1,02,097 1,06,878 1,09,342 Stage 1 91,896 94,483 97,707 1,02,735 1,04,106 QoQ 5.6% Stage 2 1,890 2,068 2,096 1,729 2,442 670 YoY 62
Slide 28: 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 29: Borrowings & Capital Structure
Section 5 1 Liability Franchise Borrowings & Capital Capital & Liquidity Metrics 2 Structure 3 Balance Sheet and Capital Productivity • 17 HDB Financial Services Presentation Q1 FY2026 29
Slide 30: Liability Franchise
Liability Franchise Liabilities Break-up Borrowings Overview As on Jun-25 INR Crores Perpetual debts, 1.6% Commercial paper, 3.5% 5.9x 5.9x 5.8x 5.9x 5.1x Sub debts, 5.4% Term loans and Working 91,472 Capital Demand Loans, External Commercial 39.3% 87,398 Borrowings, 10.7% 82,681 83,681 78,591 Non-C
Slide 31: Capital & Liquidity Metrics
Capital & Liquidity Metrics LCR 162% 198% 157% 161% 151% CRAR 18.84% 19.30% 19.20% 19.22% 20.18% 4.47% 4.82% 4.66% 4.78% 4.55% Tier-II Capital 14.64% 14.67% 15.71% Tier-I Capital 14.02% 14.42% Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 HDB Financial Services Presentation Q1 FY2026 31
Slide 32: Asset Liability Management – June 2025
Asset Liability Management – June 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 Inflo
Slide 33: 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 34: 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 Q1 FY2026 34
Slide 35: Technology Stack
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 36: Digital Capabilities – “HDB OnTheGo” App
Digital Capabilities – “HDB OnTheGo” App HDB Financial Services Presentation Q1 FY2026 36
Slide 37: 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 38: Sustainability Initiatives
Section 7 1 Environment, Social & Governance (ESG) Sustainability Initiatives 2 Corporate Social Responsibility (CSR) • 17 HDB Financial Services Presentation Q1 FY2026 38
Slide 39: 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 40: ESG Priorities
ESG Priorities Climate & Sustainable People and Customer Social Stakeholder Good Resources Sourcing Culture Focus Impact Trust Governance HDB Financial Services Presentation Q1 FY2026 40
Slide 41: ESG Highlights
ESG Highlights Environmental Social Governance Our Corporate office has received the Committed to financial inclusion by Board approved ESG Risk Management prestigious IGBC Gold Certification extending credit access to underserved Policy Commitment to reforestation and ecological populations
Slide 42: 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 HDB Financial Services Presentation Q1 FY2026 42
Slide 43: 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 Equipping Medical Centres Free OPD Services
Slide 44: 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 45: Thank You
Thank You For More Information please contact: Email: investorcommunications@hdbfs.com HDB Financial Services Presentation Q1 FY2026
Slide 46: Segment P&L Statement Q1FY26
Segment P&L Statement Q1FY26 INR Crores Particulars Lending BPO Total Interest income 3,832 - 3,832 Finance cost 1,740 - 1,740 Net Interest Income 2,092 - 2,092 Non Interest Income 330 304 634 Net Income 2,422 304 2,726 Employee cost 685 275 960 Other Operating Expenses 349 15 364 Total expenses 1,0
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