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We believe HDB Financial Services IPO brings investors an opportunity to invest in one of India’s leading and fastest-growing diversified NBFCs, with a well-balanced loan portfolio across Enterprise Lending, Asset Finance, and Consumer Finance.

We think as it is backed by the brand strength and operational discipline of its promoter, HDFC Bank, HDB has demonstrated consistent growth, strong underwriting capabilities, and resilient asset quality—evidenced by its low GNPA and NNPA ratios.

We also think with over 19 million customers, a granular loan book, and a robust phygital distribution network of 1,771 branches and 140,000+ retail touchpoints, the company is well-positioned to capture underpenetrated credit demand, particularly among “new to credit” borrowers.

By looking at the financials, the company has demonstrated a revenue growth of 14.3% in FY2024 and 15% in FY2025, with net profit rising by 25.6% in FY2024, though witnessing a modest decline of 11.6% in FY2025, mainly on account of two- fold increase in provision.

On valuation parse at the upper price band of Rs 740, the issue is asking a market cap of Rs 61388 crore. Based on FY2025 earnings and fully diluted post-IPO paid up capital, the company is asking for Price to book ratio (P/B) of 3.5x which seems fairly valued looking at its industry average ~3.5-4x.

Given its strong parentage, proven execution across cycles, diversified loan mix, and digital-first approach, we believe HDB Financial Services is well positioned to benefit from India’s ongoing financial inclusion and expanding retail credit demand. Hence, looking at all attributes we recommend investors to “SUBSCRIBE” the HDB Financial Services IPO for long-term perspective.