HDB Financial ServicesNSE:HDBFS +1.88%9 ROE % is 14.53% as of Mar. 2026, which is 9% below its 10-year median of 15.93. GuruFocus rates NSE:HDBFS with a GF Score™ of 9/100. The stock has 3 warning signs investors should review. Among 529 Credit Services companies, HDB Financial Services ranks better than 65.41% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, HDB Financial Services's ROE % distribution charts can be found below:
* The bar in red indicates where HDB Financial Services's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
HDB Financial Services (NSE:HDBFS) has a ROE % of 14.53% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HDB Financial Services and its competitors. This is near median its historical median of 15.93. Over the past decade, HDB Financial Services' ROE % has ranged from 10.62 to 19.55. According to the industry distribution chart, HDB Financial Services ranks #183 out of 529 companies in the Credit Services industry, placing it in the top 34.6%.
Is HDB Financial Services' ROE % too high?
HDB Financial Services' current ROE % of 14.53% is near median its 10-year median of 15.93. Over the past 10 years, this metric has ranged from a low of 10.62 to a high of 19.55. The Credit Services industry median ROE % is 6.61. HDB Financial Services' value of 14.53% is 119.8% above this industry median. Based on the distribution chart, HDB Financial Services ranks #183 out of 529 companies in the Credit Services industry, which is above 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' ROE % compare to V and MA?
According to the Credit Services industry distribution chart, HDB Financial Services ranks #183 out of 529 companies for ROE %. This puts HDB Financial Services in the upper half of its industry. The industry median ROE % is 6.61. HDB Financial Services' value of 14.53% is 119.8% above this benchmark. Historically, HDB Financial Services' own ROE % has ranged from 10.62 to 19.55 over the past decade. While the company's 10-year median is 15.93 vs. the industry median of 6.61, 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 ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDB Financial Services's current ROE % of 14.53% is 119.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HDB Financial Services and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDB Financial Services's current ROE % is 14.53%, which is near median its own 10-year median of 15.93. 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 ROE % of 14.53%. The current ROE % is 14.53%, which is near median its 10-year median of 15.93 and 119.8% above the Credit Services industry median of 6.61. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For HDB Financial Services (NSE:HDBFS), the current ROE % is 14.53% 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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