HDB Financial ServicesNSE:HDBFS -0.37%22 Return-on-Tangible-Equity is 14.58% as of Mar. 2026, which is 9% below its 10-year median of 15.96. GuruFocus rates NSE:HDBFS with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 523 Credit Services companies, HDB Financial Services ranks better than 62.72% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. HDB Financial Services's annualized net income for the quarter that ended in Mar. 2026 was ₹30,024 Mil. HDB Financial Services's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹205,988 Mil. Therefore, HDB Financial Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.58%.
The historical rank and industry rank for HDB Financial Services's Return-on-Tangible-Equity or its related term are showing as below:
NSE:HDBFS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.64 Med: 15.96 Max: 19.58
Current: 10.64
During the past 4 years, HDB Financial Services's highest Return-on-Tangible-Equity was 19.58%. The lowest was 10.64%. And the median was 15.96%.
NSE:HDBFS's Return-on-Tangible-Equity is ranked better than 62.72% of 523
companies
in the Credit Services industry
Industry Median: 7.05
vs NSE:HDBFS: 10.64
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
HDB Financial Services Return-on-Tangible-Equity Related Terms
HDB Financial Services Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HDB Financial Services's Return-on-Tangible-Equity 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.
NSE:HDBFS vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, HDB Financial Services's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, HDB Financial Services's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HDB Financial Services's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.58% mean?
HDB Financial Services (NSE:HDBFS) has a Return-on-Tangible-Equity of 14.58% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HDB Financial Services and its competitors. This is near median its historical median of 15.96. Over the past decade, HDB Financial Services' Return-on-Tangible-Equity has ranged from 10.64 to 19.58. According to the industry distribution chart, HDB Financial Services ranks #195 out of 523 companies in the Credit Services industry, placing it in the top 37.3%.
Is HDB Financial Services' Return-on-Tangible-Equity too high?
HDB Financial Services' current Return-on-Tangible-Equity of 14.58% is near median its 10-year median of 15.96. Over the past 10 years, this metric has ranged from a low of 10.64 to a high of 19.58. The Credit Services industry median Return-on-Tangible-Equity is 7.05. HDB Financial Services' value of 14.58% is 106.8% above this industry median. Based on the distribution chart, HDB Financial Services ranks #195 out of 523 companies in the Credit Services industry, which is above the industry midpoint. Overall, HDB Financial Services has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does HDB Financial Services' Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, HDB Financial Services ranks #195 out of 523 companies for Return-on-Tangible-Equity. This puts HDB Financial Services in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.05. HDB Financial Services' value of 14.58% is 106.8% above this benchmark. Historically, HDB Financial Services' own Return-on-Tangible-Equity has ranged from 10.64 to 19.58 over the past decade. While the company's 10-year median is 15.96 vs. the industry median of 7.05, HDB Financial Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.05, based on 523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDB Financial Services's current Return-on-Tangible-Equity of 14.58% is 106.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HDB Financial Services and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDB Financial Services's current Return-on-Tangible-Equity is 14.58%, which is near median its own 10-year median of 15.96. 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 Return-on-Tangible-Equity of 14.58%. The current Return-on-Tangible-Equity is 14.58%, which is near median its 10-year median of 15.96 and 106.8% above the Credit Services industry median of 7.05. HDB Financial Services' overall GF Score™ is 22/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For HDB Financial Services (NSE:HDBFS), the current Return-on-Tangible-Equity is 14.58% as of Mar. 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 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.
22GF Score
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