HFHDB Financial Services544429Earnings call transcript

Q2 FY27 call transcript: PAT ₹780 crore, disbursements ₹18,522 crore, interim dividend of ₹2 per share

HDB Financial has shared the transcript of its Q2 FY27 earnings call held on October 14, 2026.

By ScoutQuest · Tue 20 Oct 2026, 12:51 PM IST · 3 min read

Profit After Tax

₹780 crores, up 34% YoY

Disbursements

₹18,522 crores, up 18.7% YoY

Interim Dividend

₹2 per equity share, record date October 23, 2026

Q2 FY27 performance at a glance

• Disbursements for the quarter ended September 30, 2026 were ₹18,522 crores, up 18.7% YoY.
• Gross loan book stood at ₹1,24,469 crores, growing 11.7% year-on-year and 2.2% sequentially. Secured loans were 73.9% of the gross loan book.
• Profit after tax was ₹780 crores, an increase of 34% YoY.
• Net interest income was ₹2,534 crores, up 15.6% YoY.
• Customer franchise grew to 24.8 million, up 18.4% YoY.

Vertical-wise commentary

• Enterprise Lending disbursements grew 25.5% YoY. The LAP + EBL mortgage book grew 30% YoY, and gold loan disbursements grew over 60% YoY. Unsecured business loans returned to sequential growth. Portfolio quality and collections were stable for the segment.
• Asset Finance: the commercial vehicle book grew 8% YoY and the construction equipment book 12% YoY.
• Consumer Finance disbursements grew over 25% YoY and the book expanded 22% YoY. The consumer durables book grew 49% YoY, the auto loan book 22% YoY and Relationship PL 16% YoY. Portfolio quality and collections were stable here too.

Asset quality and operating ratios

• Gross Stage 3 (GNPA) was 2.43% as at September 30, 2026, against 2.81% as at September 30, 2025 and 2.34% as at June 30, 2026. PCR was 55%.
• Credit cost for the quarter was 2.37% versus 2.32% in the prior quarter.
• Net interest margin was 8.23%, versus 7.95% in Q2FY26 and 8.35% in Q1FY27.
• Cost-to-income ratio for the lending business was 39.3%, versus 40.7% in Q2FY26 and 39.9% in Q1FY27.
• PPOP was ₹1,756 crores, up 16.9% YoY and 1.7% QoQ.
• Annualised ROA was 2.42% and ROE 14.4%. Earnings per share was ₹9.4 and book value per share ₹266.7.
• Total capital adequacy stood at 21.37% as at September 30, 2026.

Dividend

• The Board of Directors declared an interim dividend of ₹2 per equity share, with a record date of October 23, 2026.

What management said about the road ahead

• It anticipates the upward trajectory in the LAP + EBL mortgage book to continue, and sees gold loans positioned for continued traction in the coming quarters.
• Momentum in unsecured business loans is expected to continue.
• The seasonality effect seen in asset finance asset quality is expected to normalise in the coming months.
• The festive season is expected to be a big fillip for consumer finance, and management said it looks forward to a strong H2, citing confidence from channel and OEM partners.
• On technology, the company's AI programme Shikhar: an AI-led customer onboarding project has started for the consumer finance business, with benefits expected to build as it is rolled out to the larger ecosystem. Collections in early buckets through an AI-powered bot are also progressing.

Macro context mentioned on the call

• RBI has projected real GDP growth of 7.1% for FY27, and raised the repo rate by 25 basis points on October 7, 2026, with a change in stance to calibrated tightening.
• The uneven spatial distribution of the monsoon and its impact on food production and inflation remain a key monitorable.

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