HDB Financial Q2 results today: Shares in consolidation mode after listing. Should you buy?

Shares of HDB Financial Services will be in focus today as the company, a key non-bank subsidiary of HDFC Bank, is set to announce its September-quarter (Q2 FY26) results. The stock, which made its market debut two months ago, has slipped around 16% from its listing price, reflecting investor caution.

HDB Financial’s IPO, valued at Rs 10,000 crore, was one of the biggest from the NBFC space this year and had seen a solid response from long-term investors. However, after a strong debut, the stock has drifted lower amid profit-taking and concerns over sector-wide pressures on credit costs and margins.

According to Motilal Oswal Financial Services, the company’s performance this quarter is likely to show loan growth of about 13% year-on-year and 2% sequentially, with margins expanding modestly by around 5 basis points. However, analysts expect credit costs to rise by about 10 basis points to 2.6%, which could weigh on the bottom line.

Brokerages will also closely watch trends in disbursement volumes and loan mix, as well as commentary on asset quality, which remains a key swing factor for valuations. HDB’s focus on retail and consumer finance has helped maintain stable growth in recent years, but rising delinquencies in unsecured loans across the sector have kept investors cautious.

At a fundamental level, analysts say HDB Financial’s scale, diversified portfolio, and strong parentage provide comfort. The company has been expanding its branch network and digital channels, helping it capture demand in Tier 2 and 3 cities. Over the medium term, its close integration with HDFC Bank’s ecosystem is expected to drive steady growth in personal loans, used-car financing, and SME credit.

On the technical front, the stock appears to be entering a base-building phase.”HDB Financial is consolidating above its IPO support zone of Rs 700–740, showing steady accumulation after listing gains,” said Riyank Arora, Technical Analyst at Mehta Equities. “Momentum indicators like RSI remain neutral, suggesting a base-building phase. Sustaining above Rs 740 could trigger a move toward Rs 800–850, while a breakdown below Rs 700 may invite short-term weakness.”

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)