Weeks after superhit IPO, HDB Financial stock hits all-time low on Q1 profit dip

Barely a month after HDFC’s NBFC arm, HDB Financial Services, launched itself into the Indian equities market with a massively oversubscribed IPO, it posted lacklustre first-quarter earnings, leading to a market rout.

When bidding closed for the IPO, it saw the initial share sale getting subscribed 16.69 times after it received bids for 217.68 crore shares despite having just about 13.04 crore shares on offer. Back then, HDB Financial received ₹3,369 crore from anchor investors alone.

The offering—a combination of a fresh issue of ₹2,500 crore in equity and a ₹10,000 crore offer for sale (OFS)—became the second biggest IPO in the past three years, after Hyundai India.

So, it was natural that hopes were running high on the NBFC’s first officially reported earnings. HDB Financial posted a 2.4 per cent slump in net profit of ₹568 crore for the first fiscal quarter. This led to shares dipping around 3.7 per cent to as low as ₹810 earlier on Wednesday—its lowest ever since the IPO.

The asset under management (AUM) for HDB Financial stood at ₹1,09,690 crore on June 30 2025, up 14.7 per cent from the same time a year ago. Net interest income at ₹2,092 crore, up 18.3 per cent year-on-year.

Clearly, investors were not amused by the quarterly numbers of HDB Financial, termed as an upper-layer NBFC by India’s apex bank, the Reserve Bank.

The dip came on a day when most banks and BFSI stocks saw green, despite a bearish market.

Business