HDFC Securities, the broking arm of HDFC Bank, reported a challenging performance for the quarter and half-year ended 30 September 2025, as subdued market sentiment and lower retail participation weighed on revenue and profitability. Despite continued strength in digital adoption and customer base expansion, the firm’s earnings showed a clear deceleration compared to the previous year’s high base.
HDFC Securities Q2 FY26 Stakeholding & Business Overview
As of 30 September 2025, HDFC Bank held a 94.11% stake in HDFC Securities. The company serviced 74 lakh customers through a network of 130 branches across 104 cities, underlining its wide retail footprint. Digital engagement remained best-in-class, with 96% of active clients using digital platforms for trading and investments — maintaining its status as one of India’s most digitally enabled brokerages.
HDFC Securities Q2 FY26 Financial Performance: Sharp YoY Decline
HDFC Securities Q2 FY26 reported a net revenue of INR 700 crore, down 23% year-on-year (YoY) from INR 910 crore in Q2 FY25.
Net profit fell 33% YoY to INR 210 crore, compared to INR 320 crore in the same period last year.
Earnings per share (EPS) stood at INR 118, while the book value per share increased modestly to INR 1,971 as of 30 September 2025 — reflecting balance sheet resilience despite earnings pressure.
This marks the second consecutive quarter of double-digit YoY declines in both revenue and profit, following similar weakness in Q1 FY26 when revenue slipped 11% YoY to INR 730 crore and profit fell 21% YoY to INR 230 crore.
HDFC Securities H1 FY26 Financial Performance: Earnings Compression Evident
HDFC Securities H1 FY26 recorded a profit after tax of INR 440 crore, compared to INR 610 crore in H1 FY25 — a decline of approximately 28% YoY.
HDFC Securities H1 FY26 revenue is estimated at around INR 1,430 crore, reflecting an overall slowdown in broking activity amid reduced retail trading volumes and volatile equity markets.
Operational Metrics: Customer Growth, Digital Resilience
Operationally, HDFC Securities continues to demonstrate strong fundamentals:
- Customer base grew from 61 lakh in Q2 FY25 to 74 lakh in Q2 FY26, a growth of over 20% YoY.
- Branch count rationalised from 142 in Q2 FY25 to 130, indicating an ongoing shift toward digital-first operations.
- Digital penetration remained exceptional at 95–96%, underscoring the firm’s ability to retain engagement even as physical infrastructure was streamlined.
HDFC Securities Q2 FY26 Comparison with Q1 FY26: Continued Downtrend
In Q1 FY26, HDFC Securities had reported:
- Revenue: INR 730 crore (down 11% YoY)
- Profit: INR 230 crore (down 21% YoY)
- EPS: INR 130
- Book Value: INR 1,929 per share
Sequentially, HDFC Securities Q2 FY26 saw a marginal drop in both revenue and profit, mirroring the broader slowdown in the retail broking industry.
Context within HDFC Group
Within the HDFC Group, HDFC Securities remains a strategically significant subsidiary contributing to the bank’s diversified financial ecosystem.
However, its profit contribution to consolidated earnings has moderated, reflecting the cyclical nature of capital market-linked businesses.
Structural Strengths & Cyclical Pressures
While HDFC Securities’ digital franchise and customer engagement remain formidable, the financials underscore the sensitivity of the broking business to trading activity levels and investor sentiment. The decline in revenue and profits — even as the customer base expanded — signals a compression in average revenue per client (ARPU) due to reduced transaction volumes.
Yet, the strong book value accretion, sustained digital adoption, and continued brand equity under HDFC Bank provide a cushion against cyclical downturns.
Bottom Line
HDFC Securities H1 FY26 results reflect a business that remains structurally solid but cyclically subdued. With over 7 million customers and near-universal digital engagement, HDFC Securities is well-positioned for a rebound once market conditions stabilise. However, in the near term, earnings visibility remains muted, and management focus is likely to remain on cost control and platform enhancement rather than expansion.
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