HDFC Securities FY25: Riding the Wave of India's Investing Boom
14 Jul, 2025
A) Company Overview: A Legacy of Trust and Growth
Founded in 2000, HDFC Securities is a premier stockbroking and financial services firm in India and a key subsidiary of HDFC Bank, which owns a 94.55% stake. Over 25 years, the company has built a robust presence in equity broking, mutual fund distribution, and wealth management. HDFC Bank registered with both the NSE and BSE and is a top-5 broker by client base.
B) How HDFC Securities Earns Money
HDFC Securities has a well-diversified revenue model:
-
Brokerage Income: Earned from trading in equity, derivatives, and currency segments. This remains the largest revenue contributor.
-
Distribution Fees: Commission from selling mutual funds, bonds, insurance, and other third-party products.
-
Margin Trade Facility (MTF): Interest income from funds lent to clients for trading on margin.
-
Research & Advisory: Customised investment advisory through platforms like HSL Prime Research and HDFC Tru.
-
Wealth Management: Offering PMS, AIFs, debt advisory, and VC/PE access for HNIs and corporates.
C) Financial Snapshot: FY22–FY25 Performance
Key Financial Metrics
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (Cr) | 1,975 | 1,874 | 2,660 | 3,264 |
| EBITDA (Cr) | 1,504 | 1,377 | 1,936 | 2,351 |
| EBITDA Margin (%) | 74.03% | 70.44% | 70.38% | 72.02% |
| PAT (Cr) | 984 | 777 | 951 | 1,124 |
| PAT Margin (%) | 49.82% | 41.45% | 35.75% | 34.44% |
| EPS | 622.78 | 491.77 | 595.49 | 635.03 |
Balance Sheet Snapshot (FY25)
| Assets | Cr | Liabilities | Cr |
| Fixed Assets | 161 | Share Capital | 17.7 |
| Investments | 1,064 | Reserves | 3,330 |
| Trade Receivables | 1,177 | Borrowings | 7,944 |
| Total Assets | 14,031 | Total Liabilities | 14,031 |
Key Ratios
-
ROE: 33.58%
-
Debt-to-Equity: 2.37 (high leverage)
-
P/E: 17x (moderate valuation)
-
P/B: 5.69 (premium brand)
Cash Flow Trends
Here are the key cash flow metrics from FY23 to FY25:
| Cash Flow Metric | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
| Cash from Operations | 371 | -2,747 | 2,381 |
| Cash from Investment | -973 | 207 | -138 |
| Cash from Financing | -294.6 | 2,906 | -2,210 |
| Net Cash Generated | -925 | 406 | 33 |
| Cash at Year-End | 393 | 798 | 831 |
D) HDFC Securities Stock Performance & Valuation
Valuation Metrics (FY25)
| Parameter | Value |
| Price/Share | ₹10,750 |
| Market Cap | ₹19,105 Cr |
| P/E Ratio | 17 |
| P/B Ratio | 5.69 |
| Debt to Equity | 2.37 |
| ROE (%) | 33.58% |
| Book Value/Share | ₹1,889.32 |
Stock Price Trend
-
All-time high near ₹19,000 in early 2022.
-
Current price of ₹10,750 marks a 28.33% drop from peak.
-
Price remained largely stable around ₹12,000 during 2023–2024.
-
Recent dip in 2025 hints at valuation correction amidst margin pressure.
Client Metrics (Fy 25)
-
Customer Base: 6.8 million
-
Active Clients: 1.65 million
-
Equity Trade Volumes: +24% YoY
-
MTF Book Size: 95,520 Cr (71% YoY growth)
-
Mutual Fund AUM: Surpassed 25,000 Cr
-
Digital Brokerage Share: 85% in FY25 (vs 60% in FY24)
E) HDFC Securities vs. Competitors (FY25)
| Companies | Revenue (₹ Cr) | EBITDA Margins | PAT Margins | D/E Ratio | MCap (₹ Cr) | P/E |
| HDFC Securities | 3,264 | 72.02% | 34.44% | 2.37 | 19,105 | 17.0 |
| Angel One | 5,239 | 38.00% | 22.40% | ~0.69 | 24,085 | 20.5 |
| ICICI Securities | 6,332 | 70.00% | 30.70% | ~3.89 | 29,149 | 15.2 |
HDFC Securities stands out with the highest EBITDA and PAT margins, highlighting strong profitability. However, its high debt-to-equity ratio raises caution compared to its leaner peers. ICICI Securities leads in revenue and market cap, while Angel One shows strong growth with a balanced capital structure.
F) A Digital, Youth-Led Surge
Macroeconomic Backdrop
-
GDP Growth: 6.5% in FY24-25, 7.4% in Q4.
-
Inflation: 4.6% (lowest in 6 years)
-
Repo Rate: Cut from 6.5% to 5.5% in June 2025
-
FPIs: Net outflows of $14.6B in FY25
Investor Trends
-
Demat Accounts: 19 crore (vs 15.5 Cr in FY24)
-
New Investors in FY25: 7 crore (+27% YoY)
-
Tier II/III Penetration: 45% of new accounts
-
Median Investor Age: Dropped to 32 (from 38 in 2018)
-
Digital-Native Users: Growing dominance in equity markets
G) Research, Innovation & Client-Centric Advisory
-
HSL Prime Research: New-age research arm using data-backed insights.
-
HDFC Tru: Transparent, commission-free advisory with 2 million+ clients.
-
Customized Offerings:
-
Direct Equity, Bonds, Mutual Funds
-
AIFs, PMS, NCDs
-
Unlisted Securities, REITs, and more
-
Final Verdict: Positioned for Sustainable Growth
HDFC Securities delivered a record-breaking FY25, marked by:
-
Revenue of 3,284 Cr and PAT of 1,124 Cr
-
Strong ROE of 33.58%
-
Customer-first tech adoption
Despite margin pressures and high leverage, the company is riding a wave of digital transformation and demographic shifts. With a solid parentage in HDFC Bank, strong digital share, and expanding product suite, HDFC Securities is well-positioned to lead India's retail investing revolution.
Disclaimer:
UnlistedZone is not a SEBI-registered Research Analyst or Investment Advisor.All information shared on our platform—including articles, posts, investment insights, and price trends—is solely for educational and informational purposes. We do not provide any buy/sell recommendations or financial advice.Investors are advised to do their own due diligence or consult a SEBI-registered advisor before making any investment decisions. Investments in unlisted and pre-IPO shares are subject to market risks, including liquidity risk and price volatility.UnlistedZone does not guarantee any returns and shall not be held liable for any losses incurred as a result of investment decisions taken based on the information provided.
