HDB Financial vs. Bajaj Finance: A new contender challenges an established leader in stock performance. Dalal Street is witnessing a fresh rivalry. HDB Financial recently had a major IPO. Bajaj Finance is the veteran NBFC giant dominating the market for years.
India’s financial sector is vast, covering banks, NBFCs, insurance, and fintech. This diversity fuels intense competition. The key question is whether HDB Financial can leverage its IPO excitement to reach the top. Will Bajaj Finance reaffirm its long-held market leadership?
HDB Financial vs. Bajaj Finance: Can the newcomer unseat the market leader? The stock market is set for a classic showdown. It features a new player against an industry heavyweight.
HDB Financial Services, founded in 2007, has rapidly expanded across India. It operates 1,700 branches nationwide. The company serves over 19 million customers. Services include asset finance, mortgages, consumer loans, and gold loans. It also offers BPO services. HDB Financial’s market value exceeds Rs 63,000 crore.
Bajaj Finance stands as a prominent leader in India’s NBFC sector. Its customer base surpasses 100 million. It has 4,263 branches. Bajaj Finance offers lending for retail, SME, rural, and commercial clients. Through subsidiaries Bajaj Housing Finance and Bajaj Financial Securities, it provides home loans and brokerage services. Bajaj Finance commands a market value of Rs 5.33 lakh crore.
The central question is whether HDB’s swift growth and wide services can diminish Bajaj Finance’s dominance. Or will the NBFC king maintain its unchallenged position?
HDB Financial vs. Bajaj Finance: Financial results reveal performance differences. HDB Financial Services listed on Dalal Street in July. It debuted with a 13% premium. Its IPO price was Rs 740. The company is now among India’s top eight NBFCs by value. The Rs 12,500 crore IPO saw high demand, subscribed 16.69 times.
However, Q1FY26 results showed a slight slowdown. Net profit was Rs 568 crore. This is a 2% decrease from Rs 582 crore last year. Its net profit margin fell to 12.72% from 14.98%.
In contrast, Bajaj Finance reported strong growth. For Q1FY26, its net profit rose 30.5% year-over-year. Profits reached Rs 2,789 crore. Sequentially, profits increased by 15%.
HDB Financial vs. Bajaj Finance: Net Interest Margins (NIM) comparison. HDB Financial Services reported a 7.7% NIM in Q1FY26. This improved from 7.6% in Q4 FY25.
Bajaj Finance reported a standalone NIM of 5.29% in Q1FY26. Its annualized Return on Average Assets Under Finance was also 5.29%.
HDB Financial vs. Bajaj Finance: NPAs and asset quality in Q1 FY26. HDB Financial’s gross stage 3 loans increased. They reached 2.56% of total advances in Q1FY26. This is up from 1.93% last year and 2.26% in Q4FY25. Net stage 3 loans rose to 1.11% from 0.77% a year ago. The provision coverage ratio for stage 3 loans dropped to 56.70% from 60.24%. Credit costs rose to 2.5% of total gross loans.