HDB Financial Services shares jump 12% on strong Q4, dividend boost; should you chase the rally?

Shares of HDB Financial Services saw sharp buying interest on Thursday after the company reported strong March quarter results. The stock jumped over 12 per cent in early trade to hit an intraday high of Rs 723.95 on the BSE.

HDB Financial Services share price

At 10:50 AM, the stock was trading at Rs 695.40 on the NSE, up Rs 51.10, or 7.93 per cent for the day.

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The stock opened at Rs 720.00 and slipped to a low of Rs 685.90 during the session. The company’s market capitalisation stood at around Rs 57.62K crore. The stock remains below its 52-week high of Rs 891.90, while the 52-week low stands at Rs 555.30.

Profit jumps 41 per cent in Q4

HDB Financial Services reported a net profit of Rs 751 crore in Q4FY26. This marks a 41.4 per cent rise from Rs 531 crore in the year-ago period.
Interest income rose 13 per cent year-on-year to Rs 4,081 crore, compared with Rs 3,623 crore last year.

The company’s asset under management (AUM) increased 10.7 per cent to Rs 1,18,733 crore as of March 31, 2026. Its gross loan book grew 10.9 per cent year-on-year to Rs 1,18,493 crore.

Dividend and fundraising plan

The board recommended a final dividend of Rs 2 per equity share for FY26.
It also approved a plan to raise up to Rs 32,825 crore through issuance of debt securities on a private placement basis, in one or more tranches.

Management commentary

The management said there has been no material impact from geopolitical tensions so far, including in the MSME segment. Performance in March 2026 remained stable.
However, it cautioned that the situation remains fluid. The company will continue to monitor any second- or third-order impact in the coming months.

Brokerages stay positive but cautious

Morgan Stanley maintained a “Neutral” rating on the stock and cut its target price to Rs 740 from Rs 760.

The brokerage said Q4 marked another earnings beat, supported by lower bad loan formation. It noted improving asset quality trends but flagged risks from the Middle East conflict, El Niño conditions, and potential upside in inflation and interest rates.

Jefferies retained a “Buy” rating, while trimming its target price to Rs 845 from Rs 900.

Jefferies highlighted a profit beat, with margins and provisions surprising positively. It noted that while AUM growth moderated to 11 per cent, disbursement growth improved.

The brokerage expects a pick-up in growth, lower credit costs, and stable margins to drive earnings, with an estimated 22 per cent EPS CAGR and return on equity expanding to over 15 per cent by FY28.