HDB Financial Services: 1Q27: Credit costs stable; management remains constructive on growth

研报英文原文证据摘录

HDB Financial Services: 1Q27: Credit costs stable; management remains constructive on growth

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HDB Financial Services

1Q27: Credit costs stable; management

remains constructive on growth

Reiterate Rating: NEUTRAL | PO: 800.00 INR | Price: 751.70 INR

Earnings in line; credit costs flat sequentially 16 July 2026

HDB Financial Services (HDB) 1Q’FY27 earnings came in line with reported PAT +2% Equity

above BofAe. NII came +2% vs BofAe (+20% YoY) with NIMs expanding 12bp QoQ

mainly on better yields driven by product mix changes. PPOP came in line (+25% YoY).

Key Changes

AQ resilient - Credit costs remained flattish at 2.32% (vs 2.35% QoQ) in a seasonally (Rs) Previous Current

weak quarter with GS-3 (%) declining by 10bp QoQ. However, GS-2 (%) increased to 2027E EPS 37.13 37.08

1.9% (vs 1.5% QoQ). Total ECL provision (%) remained stable at 3.2%. HDB attributes 2028E EPS 44.60 44.57

AQ delivery to on-ground actions taken over the last few months, with economic activity 2029E EPS 54.93 54.89

resilient despite the West Asia conflict. However, it believes the El Nino related

disruptions and monsoon performance to remain key monitorable. Pujita Pasumarthi >>

Research Analyst

Strong disbursements in Consumer Finance – Disbursements overall grew by 16% BofAS India pujita.pasumarthi@bofa.com

YoY in 1Q with rise in contribution from Consumer Finance business to 48.9% (vs 45%

YoY), driven by deeper penetration and seasonal demand. Gross Loans rose by +2.8%

QoQ/+11.4% YoY. Cost to Income for lending business came at 39.9% in 1Q vs 39.5%

QoQ. Stock Data

Reiterate Neutral with a PO Rs800 – We keep our earnings forecasts broadly stable Price 751.70 INR

with PO unchanged at INR800/sh, Reiterate Neutral. Price Objective 800.00 INR

Date Established 6-Jul-2026