HDB Financial Services Limited has announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025. The company's Board of Directors approved the results at a meeting held on January 14, 2026, showcasing robust financial performance across key metrics.

Financial Performance Highlights

The company delivered strong financial results for Q3FY26, demonstrating significant growth in profitability and operational efficiency:

Nine-Month Performance

For the nine months ended December 31, 2025, the company maintained its growth trajectory with consistent improvement across all financial parameters:

Revenue Composition and Growth Drivers

The company's revenue growth was primarily driven by strong performance in its core lending business. Interest income increased to ₹39,890 million in Q3FY26 from ₹35,169 million in the corresponding quarter of the previous year. Sale of services contributed ₹3,062 million, while other financial charges added ₹3,711 million to the total revenue.

Regulatory Compliance and Capital Position

HDB Financial Services maintains strong regulatory compliance with the Reserve Bank of India categorizing the company as Upper Layer (NBFC-UL) under Scale Based Regulations. The company's capital adequacy ratio stood at 21.81% as of December 31, 2025, significantly above regulatory requirements.

New Labour Codes Impact

The company recognized an estimated increase in provision for employee benefits of ₹605 million due to the implementation of New Labour Codes effective November 21, 2025. This one-time impact was accounted for under employee benefit expenses in the current quarter.

Auditor Review and Board Approval

The financial results were reviewed by joint statutory auditors G D Apte & Co and Kalyaniwalla & Mistry LLP, who issued unmodified opinions. The results were approved by the Board of Directors at their meeting held on January 14, 2026, with the meeting commencing at 11:15 AM and results approval at 4:40 PM.

HDB Financial Services has identified significant structural changes in India's retail credit landscape, highlighting the rapid adoption of digital-first lending models and evolving consumer preferences towards premium products. The transformation reflects broader socio-economic shifts as aspirational consumption spreads across different market tiers.

Digital Processing Dominance

The lending industry has embraced digital transformation at an unprecedented scale. Key statistics demonstrate this shift:

Lenders are leveraging bureau data, behavioral analytics and artificial intelligence to enable faster decisions, sharper risk assessment and more personalized pricing, thereby widening access to credit across consumer segments.

Consumer Behavior Transformation

Consumer spending patterns reveal a clear preference for premium products over entry-level options. This premiumization trend is particularly evident in consumer electronics, where demand for higher-value smartphones and devices continues rising. The shift reflects growing consumer confidence about discretionary spending, with buyers increasingly willing to invest in mid- to high-ticket purchases.

The preference for premium mobile phones exemplifies broader socio-economic changes, as aspirational consumption extends beyond metropolitan cities into Tier 2 and Tier 3 markets.

Geographic Growth Distribution

Credit growth is being powered by both established economic hubs and emerging consumption centers across India:

This geographic diversification indicates the democratization of credit access and the expansion of financial services into previously underserved markets.

Industry Outlook

Karthik Srinivasan, Chief Business Officer at HDB Financial Services, noted that customers today are "more confident, digitally aware, and willing to invest in products that offer exceptional value across price ranges." He emphasized the company's focus on delivering faster, simpler and more responsible credit solutions.

Seasonal demand for consumer durables remains robust, supported by growing preference for quick and flexible digital credit across education, lifestyle and personal spending needs. The convergence of digital technology adoption and changing consumer aspirations continues reshaping India's retail credit ecosystem.

HDB Financial Services observes 99% digital loan processing and rising premium product demand across India's retail credit landscape, with growth spanning from metros to Tier 2-3 cities. This trend underscores the rapid digital transformation and evolving consumer preferences in the country's financial services sector.