HDB Financial shares jump almost 5%, pare gains quickly; is it a stock to buy after Q1 results?
AI Summary
HDB Financial shares experienced significant volatility following the release of its June quarter results, which showed a record quarterly profit after tax of ₹785 crore, a 38.3% increase year-on-year. Despite an early surge of 4.6%, the stock later dipped by 0.5%, reflecting mixed investor sentiment. Key metrics such as net interest income and total income also reported healthy growth, indicating a strong operational performance.
HDB Financial shares traded in a volatile manner in morning trade on Thursday, 16 July, a day after the company reported its June quarter results.
HDB Financial share price jumped 4.6% in early deals to hit the day's high of ₹786.20 on the BSE but quickly erased gains, dropping 0.50% to an intraday low of ₹748.50.
Shares of the company swung between gains and losses even as the company, on Wednesday, 15 July, reported its highest ever quarterly profit after tax (PAT) of ₹785 crore, up 38.3% year-on-year (YoY).
As per the company's exchange filing, its net interest income (NII) jumped nearly 20% YoY to ₹2,509 crore for the June quarter, while net interest margin (NIM) increased to 8.4% from 7.7% YoY.
Net total income saw a healthy 16.8% YoY growth to come at ₹ 3,185 crore.
Pre-provisioning operating profit at ₹1,752 crore clocked a 25% YoY increase.
Loan losses and provisions for the quarter ended 30 June 2026 stood at ₹697 crore, up 4.1% from ₹670 crore for the same quarter in 2025.
HDB Financial Services' asset under management (AUM), as of 30 June 2026, stood at ₹1,22,048 crore, rising 11.3% from ₹1,09,690 crore by the end of the corresponding quarter of the previous year.
Gross loan book increased by 11.4% YoY to ₹1,21,846 crore as on June 30.
Gross Stage 3 loans declined to 2.34% against 2.56% YoY, while net Stage 3 loans stood at 1.04% against 1.11% YoY.
Provision coverage stood at 55.73% on stage 3 assets against 56.70% YoY.
(This is a developing story. Please check back for fresh updates.)
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