HDB Financial Services (NSE:HDBFS) Beneish M-Score: -1.95 (As of Jun. 25, 2026)


NSE:HDBFS HDB Financial Services Ltd NSE:HDBFS
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What is HDB Financial Services Beneish M-Score?

HDB Financial Services NSE:HDBFS +1.88% 9 Beneish M-Score is -1.95 as of Jun. 25, 2026. GuruFocus rates NSE:HDBFS with a GF Score™ of 9/100. The stock has 3 warning signs investors should review. Among 483 Credit Services companies, HDB Financial Services ranks worse than 59.01% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -1.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for HDB Financial Services's Beneish M-Score or its related term are showing as below:

NSE:HDBFS' s Beneish M-Score Range Over the Past 10 Years
Min: -1.95   Med: -1.8   Max: -1.64
Current: -1.95

During the past 4 years, the highest Beneish M-Score of HDB Financial Services was -1.64. The lowest was -1.95. And the median was -1.80.

HDB Financial Services Beneish M-Score Historical Data

* Premium members only.

The historical data trend for HDB Financial Services's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

HDB Financial Services Beneish M-Score Chart

HDB Financial Services Annual Data
Trend Mar23 Mar24 Mar25 Mar26
Beneish M-Score
0.00 0.00 -1.64 -1.95

HDB Financial Services Quarterly Data
Mar23 Mar24 Sep24 Dec24 Mar25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial 0.00 -1.64 0.00 0.00 -1.95

NSE:HDBFS vs V, MA, AXP: Beneish M-Score Comparison

For the Credit Services subindustry, HDB Financial Services's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

HDB Financial Services Beneish M-Score vs Credit Services Industry

For the Credit Services industry and Financial Services sector, HDB Financial Services's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where HDB Financial Services's Beneish M-Score falls into.


NSE:HDBFS
9GF Score
HDB Financial Services Ltd NSE:HDBFS
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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HDB Financial Services Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of HDB Financial Services for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0085+0.528 * 0.9959+0.404 * 0.9776+0.892 * 1.1283+0.115 * 0.9102
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0184+4.679 * 0.090168-0.327 * 0.9667
=-1.95

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹417,067 Mil.
Revenue was ₹181,434 Mil.
Gross Profit was ₹113,527 Mil.
Total Current Assets was ₹471,592 Mil.
Total Assets was ₹1,236,515 Mil.
Property, Plant and Equipment(Net PPE) was ₹6,306 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹2,093 Mil.
Selling, General, & Admin. Expense(SGA) was ₹3,765 Mil.
Total Current Liabilities was ₹364,407 Mil.
Long-Term Debt & Capital Lease Obligation was ₹649,973 Mil.
Net Income was ₹25,438 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹-86,056 Mil.
 Total Receivables was ₹366,530 Mil.
Revenue was ₹160,796 Mil.
Gross Profit was ₹100,201 Mil.
Total Current Assets was ₹398,070 Mil.
Total Assets was ₹1,086,633 Mil.
Property, Plant and Equipment(Net PPE) was ₹6,628 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹1,944 Mil.
Selling, General, & Admin. Expense(SGA) was ₹3,276 Mil.
Total Current Liabilities was ₹412,529 Mil.
Long-Term Debt & Capital Lease Obligation was ₹509,609 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(417067.1 / 181433.5) / (366530.4 / 160796.3)
=2.298733 / 2.27947
=1.0085

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(100200.5 / 160796.3) / (113526.9 / 181433.5)
=0.623152 / 0.625722
=0.9959

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (471591.9 + 6306) / 1236514.8) / (1 - (398069.8 + 6628.1) / 1086632.9)
=0.613512 / 0.627567
=0.9776

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=181433.5 / 160796.3
=1.1283

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1944.2 / (1944.2 + 6628.1)) / (2092.7 / (2092.7 + 6306))
=0.2268 / 0.24917
=0.9102

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(3764.6 / 181433.5) / (3276.2 / 160796.3)
=0.020749 / 0.020375
=1.0184

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((649972.8 + 364406.5) / 1236514.8) / ((509609.4 + 412529.4) / 1086632.9)
=0.820354 / 0.84862
=0.9667

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(25438.3 - 0 - -86055.6) / 1236514.8
=0.090168

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

HDB Financial Services has a M-score of -1.95 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.95 mean?
HDB Financial Services (NSE:HDBFS) has a Beneish M-Score of -1.95 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on HDB Financial Services and its competitors. According to the industry distribution chart, HDB Financial Services ranks #285 out of 483 companies in the Credit Services industry, placing it in the top 59%.
Is HDB Financial Services' Beneish M-Score too high?
HDB Financial Services' current Beneish M-Score is -1.95. Based on the distribution chart, HDB Financial Services ranks #285 out of 483 companies in the Credit Services industry, which is below the industry midpoint. Overall, HDB Financial Services has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does HDB Financial Services' Beneish M-Score compare to V and MA?
According to the Credit Services industry distribution chart, HDB Financial Services ranks #285 out of 483 companies for Beneish M-Score. This places HDB Financial Services in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Credit Services company?
A good Beneish M-Score depends on the Credit Services industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on HDB Financial Services and its competitors. HDB Financial Services's current Beneish M-Score is -1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDB Financial Services stock overvalued right now?
HDB Financial Services (NSE:HDBFS) has a current Beneish M-Score of -1.95. The current Beneish M-Score is -1.95. HDB Financial Services' overall GF Score™ is 9/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For HDB Financial Services (NSE:HDBFS), the current Beneish M-Score is -1.95 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

HDB Financial Services Business Description

Other Exchanges 544429:India
Address Tukaram Sandam Marg, A-Subhash Road, HDB House, Vile Parle (East), Navpada, Mumbai, MH, IND, 400057
HDB Financial Services Ltd is a non-banking finance company that provides lending services and business process outsourcing. The company also offers services related to the marketing and promotion of various financial products. Additionally, it provides BPO services that encompass back-office services such as form processing, document verification, finance and accounting services, and correspondence management, as well as front-office services including contact center management, outbound marketing, and collection services. The company's operating segments are: Lending services and BPO services. The majority of its revenue is generated from the Lending services segment, which includes providing finance to retail customers for a variety of purposes. Its operations are concentrated in India.
9GF Score

Get the complete analysis for NSE:HDBFS

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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