The stock rose to an intraday high of ₹786.55 on the NSE, up 4.63% from the previous close of ₹751.70.

Shares of HDB Financial Services, an arm of HDFC Bank, surged over 4 per cent on Thursday after the company reported its highest quarterly profit for the June quarter, supported by higher core income and improving asset quality.

The stock rose to an intraday high of ₹786.55 on the NSE, up 4.63 per cent from the previous close of ₹751.70.

It reported a net profit of ₹785 crore for the quarter ended June 30, 2026, a 38.3 per cent y-o-y increase from ₹568 crore in the corresponding quarter last year.

Total income increased 16.8 per cent to ₹3,185 crore from ₹2,726 crore in the corresponding quarter of the previous financial year.

AUM grew 11.3 per cent y-o-y to ₹1.22 lakh crore as of June 30, 2026, compared with ₹1.1 lakh crore a year earlier.

NII rose 20 per cent y-o-y to ₹2,509 crore during the April-June quarter from ₹2,092 crore a year earlier, as per the NBFC’s statement.

Loan losses and provisions rose to ₹697 crore in the June quarter from ₹670 crore in the year-ago period.

The company’s asset quality improved during the quarter, with gross non-performing assets moderating to 2.34 per cent from 2.56 per cent a year earlier. Net non-performing assets also declined to 1.04 per cent from 1.11 per cent.

The gross loan book expanded 11.4 per cent to ₹1.22 lakh crore from ₹1.09 lakh crore in the corresponding period last year.

Jefferies maintained its buy rating on the stock and raised the target price to ₹845 from ₹805. The brokerage said first-quarter profit after tax beat estimates by about 2 per cent, driven by stronger net interest margins. It added that asset quality improved despite seasonal pressures and raised its FY27 and FY28 earnings estimates by about 5 per cent.

Morgan Stanley maintained its equal-weight rating with an unchanged target price of ₹800. The brokerage said the quarter was broadly in line with expectations and that the company remained “on the right track”, supported by improving asset quality and durable net slippage trends.

Nirmal Bang maintained its buy rating and raised the target price to ₹890 from ₹870. The brokerage said earnings exceeded estimates on total income, pre-provision operating profit and profit after tax, while improved asset quality and a lower cost-to-income ratio supported profitability.

Meanwhile, Motilal Oswal reiterated its neutral rating with a target price of ₹810. The brokerage said earnings were slightly ahead of estimates, supported by expanding margins and improving asset quality, while loan growth remained slightly below expectations. It added that it would look for stronger evidence of loan growth acceleration and structural improvement in return ratios going forward.

On the other hand, Emkay maintained its reduce rating and increased its target price to ₹725 from ₹675. The brokerage said the quarter was strong on disbursements, profitability and asset quality, but added that assets under management growth remained soft and valuation continued to be the key reason for retaining the reduce rating.

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