HDB Financial Services reported strong financial results for the third quarter, demonstrating robust growth across key performance metrics. The leading non-banking financial company delivered impressive year-on-year improvements in profitability and operational efficiency during the December quarter, with net profit surging 36.3% to ₹644.00 crore compared to ₹472.00 crore in the corresponding quarter last year.

Financial Performance Highlights

The company's financial performance for Q3 showed significant improvement across all major parameters:

Net interest income emerged as a key growth driver, rising 22.10% year-on-year to ₹2,285.00 crore from ₹1,872.00 crore in the same period last year. The strong performance contributed significantly to overall revenue growth, lifting net total income to ₹2,970.00 crore, representing an 18.80% increase from the previous year.

Asset Growth and Loan Portfolio Expansion

The NBFC demonstrated strong business expansion with assets under management growing 12.00% to ₹1,14,853.00 crore from ₹1,02,514.00 crore in the year-ago quarter. Total gross loans for the quarter stood at ₹1,14,577.00 crore, up from ₹1,02,097.00 crore a year earlier, registering growth of 12.20%.

The consistent growth in loan portfolio reflects the company's effective business expansion strategies and ability to capitalize on market opportunities while maintaining operational discipline in the competitive NBFC sector.

Asset Quality and Provisions

Asset quality metrics showed some pressure during the quarter. Gross stage 3 loans increased to 2.81% as of December 31 compared with 2.25% a year earlier, while net stage 3 loans stood at 1.25% versus 0.90% in the corresponding quarter last year. Provision coverage on stage 3 assets was maintained at 55.59%, compared with 60.02% in the year-ago quarter.

Employee benefit expense during the quarter included a provision of ₹61.00 crore on account of new labour codes, of which ₹56.00 crore related to the lending business. Loan losses and provisions stood at ₹712.00 crore, up 12.00% from ₹636.00 crore in the corresponding quarter last year.

Nine-Month Performance

For the nine months ended December 31, profit after tax stood at ₹1,793.00 crore compared with ₹1,645.00 crore in the corresponding period of the previous year, reflecting growth of 9.00%. The sustained performance demonstrates the company's ability to maintain growth momentum throughout the fiscal year while managing operational challenges effectively.

Allied Blenders & Distillers shares traded over 2% lower on Thursday, January 1, ahead of the expiry of its six-month and longer shareholder lock-in period. The lock-in period concludes on Friday, January 2, marking a significant milestone for the alcoholic beverages company.

Lock-in Expiry Details

The expiry affects approximately 55.9 million shares, representing about 20% of Allied Blenders' outstanding equity. At Thursday's market price, these shares carry an estimated value of nearly ₹3,355 crore.

The expiry of the lock-in period does not automatically mean all these shares will be sold in the open market. The expiry simply makes these shares eligible for trading, providing shareholders with the option to trade if they choose.

Strong Stock Performance

Allied Blenders has demonstrated exceptional performance since its market listing, emerging as a notable outperformer in the alcoholic beverages sector. The stock has gained nearly 114% from its issue price at current market levels, showcasing strong investor confidence in the company's prospects.

Concurrent Market Activity

Alongside Allied Blenders, HDB Financial Services will also experience a lock-in expiry on Friday. The financial services company's six-month lock-in period concludes, making nearly 58% of its outstanding equity, or around 481.5 million shares, eligible for trading. At current prices, the value of HDB Financial Services shares becoming tradeable is close to ₹37,000 crore, with the stock continuing to trade above its IPO issue price of ₹740 per share.