HDFC Securities, the brokerage arm of HDFC Bank, reported a mixed set of numbers for Q3 FY26. After two consecutive quarters of decline, the firm managed a modest recovery in revenue, though profitability continued to face headwinds amid muted market activity and subdued retail trading sentiment.
HDFC Securities Q3 FY26 Performance: Key Highlights
- Net Revenue: INR 830 crore, up 5% year-on-year (YoY) — marking a return to top-line growth after two soft quarters.
- Net Profit: INR 220 crore, down 17% YoY, as margin pressures persisted despite improved revenue traction.
- Earnings Per Share (EPS): INR 123, compared to INR 118 in Q2 FY26.
- Book Value per Share: INR 1,999 as of 31 December 2025, continuing a steady upward trajectory.
- Digital Penetration: ~97% of active clients transacted through online platforms, reaffirming HDFC Securities’ status as one of India’s most digital-first brokerages.
- Customer Base: 76 lakh customers serviced via 129 branches across 104 cities.
HDFC Bank’s stake in HDFC Securities stood at 94.05%, marginally lower than 94.11% in the previous quarter, reflecting ongoing regulatory alignment.
HDFC Securities Q3 FY26 vs Q1 & Q2 FY26: Signs of Stabilisation After a Tough H1
HDFC Q3 FY26 results come after a difficult first half of FY26, where HDFC Securities saw revenue and profits decline sharply:
| Period | Q1 FY26 | Q2 FY26 | Q3 FY26 |
|---|---|---|---|
| Net Revenue | 730 | 700 | 830 |
| Net Profit | 230 | 210 | 220 |
| EPS (INR) | 130 | 118 | 123 |
| Book Value (INR) | 1,929 | 1,971 | 1,999 |
| YoY Change | Revenue ↓ 11%, Profit ↓ 21% | Revenue ↓ 23%, Profit ↓ 33% | Revenue ↑ 5%, Profit ↓ 17% |
After two quarters of double-digit YoY decline, the uptick in Q3 revenue indicates early signs of stabilisation in trading volumes and retail participation, albeit from a lower base. Profitability, however, remains under strain as cost pressures and compressed brokerage yields offset efficiency gains from digital scale.
Operational and Structural Strengths
HDFC Securities continues to build on its digital leadership — nearly 97% of its active clients now use online channels. The firm’s ongoing branch rationalisation (down to 129 branches from 134 at the start of FY26) reflects a deliberate pivot to a digital-first operating model.
Customer growth also remains healthy: from 71 lakh in Q1 FY26 to 76 lakh by Q3 FY26, representing steady expansion even amid market sluggishness.
These metrics reaffirm the company’s structural strengths — a loyal customer base, strong brand equity under HDFC Bank, and a scalable, technology-driven brokerage infrastructure.
HDFC Group Context
Within the larger HDFC Bank ecosystem, HDFC Securities remains a strategically important subsidiary, though its contribution to consolidated profits has moderated. As of Q3 FY26, HDFC Bank held majority stakes in key subsidiaries such as:
| Entity | PAT | Stake Held (%) | Book Value (INR) | EPS (INR) |
|---|---|---|---|---|
| HDB Financial Services | 640 | 74.15 | 239 | 7.8 |
| HDFC Life Insurance | 420 | 50.21 | 81.4 | 1.9 |
| HDFC AMC | 770 | 52.38 | 200.2 | 18.0 |
| HDFC ERGO | 260 | 50.33 | 76.0 | 3.6 |
| HDFC Securities | 220 | 94.05 | 1,999 | 122.9 |
Though smaller in scale relative to other subsidiaries like HDFC AMC or HDB Financial Services, HDFC Securities remains a core component of HDFC Bank’s diversified financial services architecture, offering cross-sell potential and retail engagement synergies.
Outlook: Gradual Normalisation Ahead
HDFC Securities Q3 FY26 results highlight a tentative turnaround. The return to revenue growth and steady customer accretion suggest that HDFC Securities may be emerging from the cyclical trough that characterised the first half of the year.
However, profitability recovery is likely to lag, as subdued retail trading volumes and competitive pricing continue to weigh on margins. Broking businesses, by nature, remain highly sensitive to market sentiment and transaction intensity — variables currently constrained by macroeconomic uncertainty and regulatory tightening in derivatives trading.
Yet, with its strong balance sheet (book value nearing INR 2,000 per share), digital dominance, and alignment with HDFC Bank’s customer base, HDFC Securities is well-positioned for recovery once market activity rebounds.
Bottom Line
HDFC Securities Q3 FY26 results signal resilience amid volatility. The brokerage has weathered a tough operating environment through scale, technology, and disciplined capital management. While earnings remain subdued, the return to revenue growth and consistent balance sheet accretion underscore a platform that’s built for the long term.
As market liquidity and investor sentiment improve, FY27 could mark an inflection year for HDFC Securities — transitioning from cyclical softness to a renewed phase of digital-led growth.
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