Excluding the impact of the new labor laws, the NBFC’s bottom line would have grown 45 percent year-on-year to ₹686 crore in Q3FY26 | Photo credit:
The non-banking finance company’s (NBFC) net interest income (NII) rose 22 per cent year-on-year to ₹2,285 crore. Non-interest income rose 18 percent to Rs 378 crore in the quarter under review. Total expenses rose 19 per cent to ₹1,109 crore, while credit costs rose 12 per cent YoY to ₹712 crore.
Excluding the impact of the new labor laws, the NBFC’s bottom line would have grown 45 per cent year-on-year to ₹686 crore in the third quarter of 2026.Employee benefits include a provision of ₹61 crore under the new labor laws, of which ₹56 crore relates to lending.
Core activity
HDB Financial’s gross loan book rose 12 per cent year-on-year to ₹1.14 lakh crore at end-December. Disbursements rose 15 per cent sequentially to ₹17,917 crore. Seventy-four percent of the NBFC’s loan book is secured, with loans against real estate accounting for the highest share of 22 percent of total loans. The number of customers grew to 22 million in the third quarter, an increase of 19 percent year on year.
The net interest margin for the third quarter of 2026 stood at 8.09 percent, compared to 7.95 percent in the second quarter of 2026 and 7.46 percent in the third quarter of 2025. Forty percent of the NBFC’s loans were in the form of bank loans, 36 percent in the form of NCDs and the rest in a mix of other instruments. The NBFC’s gross stage-3 ratio stood at 2.81 per cent in the third quarter and remained flat sequentially.
Shares of HDB Financial ended 0.4 per cent lower at ₹765 apiece on the BSE today. The NBFC announced its third quarter earnings results after trading hours.
Published on January 14, 2026
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