HDFC Securities, the broking arm of HDFC Bank, reported a subdued set of numbers for the quarter ended 30 June 2025 (Q1 FY26). While the company maintained its strong digital penetration and customer reach, profitability came under pressure amid a challenging market environment.
HDFC Securities Q1 FY26 Results: Operational and Customer Metrics
- As of 30 June 2025, HDFC Securities serviced 71 lakh customers through 131 branches across 105 cities, compared with 68 lakh customers and 134 branches in Q4 FY25.
- The company continues to see robust digital adoption, with 95% of active clients using its online platforms in Q1 FY26, marginally lower than the 96% digital penetration reported in the previous quarter.
HDFC Securities Q1 FY26 vs Q4 FY25 vs Q1 FY25 – Financial Performance
- Net Revenue stood at INR 730 crore, down 11% YoY from Q1 FY25’s base, and slightly lower than INR 740 crore in Q4 FY25.
- Net Profit declined 21% YoY, coming in at INR 230 crore, versus INR 250 crore in Q4 FY25 and significantly weaker compared to the year-ago quarter.
- Earnings Per Share (EPS) dropped to INR 130 in Q1 FY26, from INR 141.3 in Q4 FY25.
- Book Value per share improved to INR 1,929, from INR 1,885 in the March quarter, indicating steady balance sheet accretion despite pressure on earnings.
This marks the second consecutive quarter of YoY decline in both revenue and profitability, underscoring headwinds in broking income and transaction volumes.
Stakeholding and Group Companies Context
HDFC Bank continues to hold a significant majority stake in its securities subsidiary:
- Stake in HDFC Securities slipped slightly from 94.55% as of 31 March 2025 (Q4 FY25) to 94.38% as of 30 June 2025 (Q1 FY26).
- This minor dilution is in line with regulatory norms and internal capital alignment.
Within the larger group structure, other key subsidiaries such as HDB Financial Services, HDFC Life Insurance, HDFC AMC, and HDFC ERGO also reported mixed results. Notably, HDB Financial Services reported INR 570 Cr PAT, while HDFC Life Insurance and HDFC AMC delivered INR 550 Cr and INR 750 Cr PAT, respectively. HDFC Securities’ INR 230 Cr PAT thus remains an important, though relatively smaller, contributor to the group’s consolidated earnings.
Consolidated Bank-Level Picture
HDFC Bank Q1 FY26 results at the consolidated level:
- Net Revenue of INR 85,350 Cr in Q1 FY26, up 17.8% YoY and 16.5% QoQ.
- However, Provisions jumped sharply to INR 15,310 Cr, up 301.9% QoQ and 387.7% YoY, dragging down overall profitability.
- As a result, Consolidated Profit slipped to INR 16,260 Cr, down 13.7% QoQ and 1.3% YoY.
This broader picture indicates that while HDFC Bank’s core income is growing strongly, rising provisions and weaker subsidiary performance—particularly from HDFC Securities—are weighing on consolidated earnings momentum.
Final Words
HDFC Securities Q1 FY26 numbers reflect structural strengths in its digital franchise but also highlight cyclical vulnerabilities in broking revenues. The consistent high digital penetration (95%) and expanding customer base (7.1 million) remain positives, showing that the franchise is well-entrenched. However, earnings compression, evident from a two-quarter streak of double-digit YoY profit decline, suggests pressure from reduced retail participation and softer trading volumes.
📌 Bottom Line: HDFC Securities Q1 FY26 closed with a weaker profit profile, despite maintaining its strong customer base and digital dominance. The numbers point to a business that is fundamentally robust but is navigating a cyclical downturn in broking activity. For investors, the subsidiary remains strategically important to HDFC Bank’s diversified financial services ecosystem, though short-term earnings visibility appears muted.
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