HDFC Securities reported its unaudited results for the quarter ended 30 June 2026, and the headline number is a 28% year-on-year jump in profit after tax. But the more interesting story is buried in the revenue mix.
| Metric | Q1 FY27 | Q4 FY26 | Q1 FY26 | FY26 (full year) | YoY |
|---|---|---|---|---|---|
| Total revenue from operations | 950 | 850 | 729 | 3,107 | +30% |
| Total income | 950 | 850 | 729 | 3,110 | +30% |
| Total expenses | 558 | 497 | 425 | 1,873 | +31% |
| Profit before tax | 392 | 353 | 304 | 1,237 | +29% |
| Profit after tax | 297 | 268 | 232 | 930 | +28% |
| EPS (basic, ₹) | 166 | 150 | 130 | 522 | +28% |
Consolidated PAT came in slightly lower at ₹296 crore, dragged down by the IFSC subsidiary, which posted a net loss of ₹1 crore on negligible revenues.
This is the structural shift worth flagging. A year ago, fees and commission income (₹354 crore) exceeded interest income (₹303 crore). This quarter, interest income hit ₹451 crore against fees of ₹436 crore.
| Revenue line | Q1 FY27 | Q1 FY26 | FY26 (full year) | YoY |
|---|---|---|---|---|
| Interest income | 451 | 303 | 1,498 | +49% |
| Fees and commission | 436 | 354 | 1,516 | +23% |
| Net gain on fair value changes | 56 | 68 | 70 | −17% |
| Sale of services | 6 | 4 | 20 | +61% |
| Rental + dividend | 1 | 1 | 3 | — |
| Net interest income (NII) | 158 | 148 | 681 | +7% |
| Avg loan book | 8,607 | 6,446 | 6,323 | - |
| NIM (on avg loan book) | 7.2% | 9.9% | 10.76% | −371 bps |
NII is interest income less finance costs.
NIM is NII annualised over the average loan book — ₹8,607 crore for Q1 FY27 (opening ₹7,133 crore, closing ₹10,081 crore) and ₹6,323 crore for FY26. Unrounded, the margin fell from 10.76% in FY26 to 7.34% this quarter.
The point: interest income grew 49%, but NII grew only 7%. Finance costs are eating almost all of the incremental interest income, and the loan book is being funded at a thinner spread than it was a year ago.
HDFC Securities is increasingly a lending business wrapped around a broking franchise. The loan book grew from ₹7,133 crore at 31 March 2026 to ₹10,081 crore at 30 June 2026 — a 41% expansion in a single quarter.
Finance costs nearly doubled year-on-year, from ₹155 crore to ₹293 crore. Full-year FY26 finance costs were ₹817 crore, so Q1 FY27 alone is running at 36% of the entire prior year.
The company issued ₹18,190 crore of commercial paper during the quarter and redeemed ₹15,490 crore. Debt securities on the balance sheet rose from ₹12,931 crore to ₹15,600 crore. The debt-equity ratio climbed to 5x from 4x in March and 3x a year ago.
Interest service coverage fell to 2.4x from 3.1x. Total debt to total assets is now 0.74, up from 0.58 a year ago. None of this is alarming for an NBFC-style operation, but the leverage trajectory is steep and worth watching.
Employee benefits expense actually fell year-on-year — ₹139 crore versus ₹148 crore — though it rose sequentially from ₹126 crore.
FY26 total was ₹575 crore. Other expenses rose to ₹101 crore from ₹93 crore (FY26: ₹386 crore). Impairment on financial instruments dropped sharply to ₹4 crore from ₹9 crore.
Operating margin held at 41% (versus 42% a year ago and 40% for FY26), net profit margin at 31% (versus 32% and 30%). Both roughly flat despite the revenue mix shift.
| Item | 30 Jun 2026 | 31 Mar 2026 |
|---|---|---|
| Total assets | 24,389 | 21,784 |
| Loans | 10,081 | 7,133 |
| Cash and equivalents | 760 | 1,784 |
| Bank balances (other) | 8,378 | 7,839 |
| Debt securities | 15,600 | 12,931 |
| Net worth | 3,724 | 3,596 |
Cash and equivalents fell sharply — down ₹1,024 crore — as operating cash outflow hit ₹3,470 crore, driven almost entirely by the ₹2,949 crore increase in loans. Financing inflows of ₹2,517 crore covered most but not all of it.
| Metric | Value |
|---|---|
| Indicative price (as on 20.07.2026) | ₹8,450 |
| Market cap | ₹15,104 Cr |
| P/E ratio (FY27 E) | 12.7 |
| P/B ratio (FY27 E) | 4.06 |
| Book value | ₹2,083 |
| Face value | ₹10 |
Interim dividend of ₹110 per share paid during the quarter, totalling ₹197 crore (FY26 dividend outflow: ₹740 crore)
5,91,299 stock options outstanding; 4,093 shares allotted on ESOP exercise
Auditor S.R. Batliboi & Co. LLP issued an unmodified limited review conclusion on both standalone and consolidated results
Board approved results on 13 July 2026
The margin compression is the number to track — roughly 370 basis points off the loan book in a single year. Commercial paper rates in the disclosed schedule range from roughly 6.5% to 8.2%, with more recent issuances clustering at the higher end — May and June 2026 papers priced at 8% versus April issuances near 6.5%. If that persists, finance costs keep climbing and the margin has further to fall.
The broking side grew a respectable 23%, but it's no longer the growth engine. That's a different company than the one that listed.