HDB Financial ServicesNSE:HDBFS +1.88%9 ROA % is 2.43% as of Mar. 2026, which is 3% below its 10-year median of 2.50. GuruFocus rates NSE:HDBFS with a GF Score™ of 9/100. The stock has 3 warning signs investors should review. Among 546 Credit Services companies, HDB Financial Services ranks worse than 51.83% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. HDB Financial Services's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹30,024 Mil.
HDB Financial Services's average Total Assets over the quarter that ended in Mar. 2026 was ₹1,236,515 Mil. Therefore, HDB Financial Services's annualized ROA % for the quarter that ended in Mar. 2026 was 2.43%.
The historical rank and industry rank for HDB Financial Services's ROA % or its related term are showing as below:
NSE:HDBFS'
s ROA % Range Over the Past 10 Years
Min: 1.71 Med: 2.5 Max: 3.03
Current: 1.71
During the past 4 years, HDB Financial Services's highest ROA % was 3.03%. The lowest was 1.71%. And the median was 2.50%.
NSE:HDBFS's ROA % is ranked worse than 51.83% of 546
companies
in the Credit Services industry
Industry Median: 1.915
vs NSE:HDBFS: 1.71
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Credit Services subindustry, HDB Financial Services's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, HDB Financial Services's ROA % distribution charts can be found below:
* The bar in red indicates where HDB Financial Services's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
HDB Financial Services (NSE:HDBFS) has a ROA % of 2.43% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on HDB Financial Services and its competitors. This is near median its historical median of 2.50. Over the past decade, HDB Financial Services' ROA % has ranged from 1.71 to 3.03. According to the industry distribution chart, HDB Financial Services ranks #283 out of 546 companies in the Credit Services industry, placing it in the top 51.8%.
Is HDB Financial Services' ROA % too high?
HDB Financial Services' current ROA % of 2.43% is near median its 10-year median of 2.50. Over the past 10 years, this metric has ranged from a low of 1.71 to a high of 3.03. The Credit Services industry median ROA % is 1.92. HDB Financial Services' value of 2.43% is 26.9% above this industry median. Based on the distribution chart, HDB Financial Services ranks #283 out of 546 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' ROA % compare to V and MA?
According to the Credit Services industry distribution chart, HDB Financial Services ranks #283 out of 546 companies for ROA %. This places HDB Financial Services in the lower half of its industry. The industry median ROA % is 1.92. HDB Financial Services' value of 2.43% is 26.9% above this benchmark. Historically, HDB Financial Services' own ROA % has ranged from 1.71 to 3.03 over the past decade. While the company's 10-year median is 2.50 vs. the industry median of 1.92, 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 ROA % for a Credit Services company?
The median ROA % among Credit Services companies is 1.92, based on 546 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDB Financial Services's current ROA % of 2.43% is 26.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on HDB Financial Services and its competitors. For the Credit Services industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDB Financial Services's current ROA % is 2.43%, which is near median its own 10-year median of 2.50. 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 ROA % of 2.43%. The current ROA % is 2.43%, which is near median its 10-year median of 2.50 and 26.9% above the Credit Services industry median of 1.92. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For HDB Financial Services (NSE:HDBFS), the current ROA % is 2.43% 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.
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