Motilal Oswal Recommends 'Neutral' on HDB Financial Services with INR 815 Target

• HDB Financial Services (HDBFIN) reported a 36% YoY rise in 3QFY26 Profit After Tax (PAT) to INR 6.4 billion.
• Adjusted PAT, excluding one-time provisioning for new labor codes, increased by 44% YoY to INR 6.8 billion.
• Net Interest Income (NII) grew 22% YoY to INR 22.8 billion, while other income rose 9% YoY to INR 6.8 billion.
• Operating expenses increased 14% YoY to INR 14 billion; cost-to-income ratio (CIR) in lending business declined to 39.5%.
• Motilal Oswal maintains a 'Neutral' rating with a target price of INR 815, projecting 11%/15%/21% CAGR in disbursement/AUM/PAT over FY25-28.

Why It Matters: Motilal Oswal advises a 'Neutral' stance on HDB Financial Services, setting a target price of INR 815.