HDB Financial Services and HDFC AMC Release Q2 Results: Insights on Corporate Actions and Investment Strategies

The recent financial results for the quarter and half-year ending September 30, 2025, were released by HDB Financial Services and HDFC Asset Management Company (AMC). Both companies have announced corporate actions, including bonus shares and dividends. Investors are now questioning which HDFC stock is the better investment ahead of these corporate actions. Let's delve into their Q2 financial performance, corporate action details, and trading recommendations.

HDB Financial Services reported a net profit of Rs 1,149 crore for the half-year ending September 30, 2025, slightly down from Rs 1,173 crore in the same period last year. For the quarter ending September 30, 2025, the profit after tax was Rs 581 crore compared to Rs 591 crore in the previous year. The company's asset under management (AUM) increased by 12.8%, reaching Rs 1,11,721 crore in Q2FY26 from Rs 99,076 crore in Q2FY25.

"The Board of Directors of the Company has declared an interim dividend of Rs. 2.00/- (Rupees Two Only) per equity share (i.e. 20% on face value of each equity shares) for financial year 2025-26. The interim dividend shall be paid to the equity shareholders of the Company, whose names appear in the Register of Members / the list of beneficiary holders of the Depositories as on Friday, October 24, 2025, which is the Record Date fixed for the purpose," said HDB Financial Services in a stock exchange filing.

HDB Financial Services also reported a rise in total gross loans to Rs 1,11,409 crore as of September 30, 2025, marking a 13% increase from Rs 98,624 crore in the same period last year. The net interest income (NII) grew by 19.6% to Rs 2,192 crore for Q2FY26 from Rs 1,833 crore in Q2FY25. Additionally, net total income surged by 18.4% to Rs 2,851 crore from Rs 2,408 crore during the same quarter last year.

The Board of Directors at HDFC AMC announced a bonus issue of equity shares in a ratio of 1:1. This means one new fully paid-up equity share of Rs. 5 each will be issued for every existing share held as of the record date. "The record date for determining the entitlement of the Members of the Company to receive bonus Equity Shares is fixed as Wednesday, November 26, 2025," said HDFC AMC in a stock exchange filing.

HDFC AMC plans to issue approximately 21.4 crore bonus equity shares valued at Rs. 5 each, totalling an estimated value of Rs. 107 crore. After this bonus issue, HDFC AMC will have about 42.8 crore equity shares issued and paid up with a total value of Rs. 214 crore. The company's authorized capital will remain unchanged.

HDB Financial Services Target Price

"HDB Financial shows stable growth in its retail loan book with improving asset quality. Technically, the stock is consolidating near breakout levels. RSI remains neutral to bullish. Buy near ₹730 with a stop loss at ₹710 and targets of ₹770-₹800," commented Riyank Arora, technical analyst at Mehta Equities Ltd.

HDFC AMC's second-quarter net profit rose by 24% to Rs 718 crore compared to Rs 577 crore during the same period last year. Revenue from operations increased by 16% to Rs 1,026 crore from Rs 887 crore in Q2FY25. Total expenses for this quarter rose by 24% to Rs 246 crore from Rs 199 crore during Q2FY25.

HDFC AMC Target Price

"HDFC AMC stays bullish after strong inflows in equity mutual funds and solid AUM growth. The stock trades above key averages, reflecting strength. RSI near 65 supports continuation of momentum. Buy around ₹5850-₹5900 with targets of ₹6100 and ₹6250; stop loss ₹5750," commented Riyank Arora.

The company's assets under management (AUM) grew by 14% year-on-year to reach Rs 8.73 lakh crore at the end of Q2FY26. The live individual account count also saw a significant increase of 26% year-on-year to reach approximately 25.94 million accounts.

The issuance process for HDFC AMC's bonus shares is expected to be completed within two months from the Board's approval date but no later than December 14, 2025. Eligible shareholders will have their bonus shares credited based on records as of the specified record date.

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