HDFC Securities Q4 FY26 Results: PAT Falls 17% — What It Means for the Unlisted Share
· 3 min read · Written by the BuyUnlistedShares desk. Information only, not investment advice.
HDFC Securities reported a 17% decline in FY26 profit, reflecting a challenging year for the broking industry. Q4 PAT was the highest of the year. This post covers financials and risks.
A tough year for India's broking industry — but Q4 shows the cycle may be turning. Here is every number, every risk, and the forward view every unlisted investor needs.
| Item | Value | As of |
|---|---|---|
| Indicative price | ₹7,650 | 17 Oct 2026 |
| Lot size | 4 shares | 18 Oct 2026 |
| Minimum investment | ₹31,000 | 17 Oct 2026 |
| Market cap | ₹13,773 Cr | 17 Oct 2026 |
| Face value | ₹10 | 18 Oct 2026 |
| Book value | ₹1889.32 | 18 Oct 2026 |
| P/E | 14.23 | 17 Oct 2026 |
| ISIN | INE700G01014 | 18 Oct 2026 |
| Sector | Financials | 18 Oct 2026 |
| Listing status | UNLISTED | 18 Oct 2026 |
FY 26 PAT : ₹929 CR
Q4 PAT (BEST QTR) : ₹268 CR
Unlisted Price : ₹9,000
Trailing P/E : ~17x
Mkt Cap (Unlisted) : ₹ 16,000CR
HDFC Securities Limited —
The stock broking and financial distribution subsidiary of HDFC Bank — just published its audited standalone and consolidated financial results for the year ended 31 March 2026. The results were approved by the Board on April 13, 2026, and filed with NSE under SEBI (LODR) Regulations. Statutory auditors S.R. Batliboi & Co. LLP issued a clean, unqualified opinion.
The earnings dip followed SEBI's derivatives regulations and softer trading volumes across the Indian broking industry. This post sets out the numbers and the Q4 figures.
The FY26 Numbers at a Glance (Standalone)
Q4 Recovery: The Signal Investors Were Waiting For
Full-year PAT declined 17%. Q4 FY26 had the highest PAT of the year, and it was the second consecutive quarter of sequential PAT growth.
Q1 FY26 ₹215 Crore PAT
Q2 FY26 ₹226 Crore PAT
Q3 FY26 ₹220 Crore PAT
Q4 FY26 ₹268 Crore PAT (Best Quarter )
Why Q4 matters:
Q4 revenue jumped 14.5% YoY to ₹850 Cr and PAT grew 22% sequentially from Q3's ₹219 Cr. Fees and commission income rose to ₹420.5 Cr in Q4 from ₹387.4 Cr in Q4 FY25.
Employee Cost Spike: A One-Time Hit, Not a Trend
Employee benefit expenses rose from ₹480 Cr in FY25 to ₹575 Cr in FY26, a 19.8% increase. This included a one-time ₹103.7 Cr provision for past service cost on gratuity, triggered by the new Labour Codes notified by the Ministry of Labour and Employment in November 2025.
Forward implication:
Strip out the one-timer and FY26 employee costs were broadly flat YoY.
Revenue Deep-Dive and the Lending Shift
Interest Income grew from ₹1,418 Cr to ₹1,498 Cr (+5.6%), reflecting rapid scaling of the Margin Trading Facility (MTF) book. Fees and Commission Income fell from ₹1,744 Cr to ₹1,516 Cr (–13.1%), directly reflecting SEBI's F&O regulations.
It also now runs a GIFT City subsidiary (HDFC Securities IFSC Limited, incorporated October 2024).
Why the Entire Industry Had a Tough FY26
HDFC Securities' earnings decline did not happen in isolation. Indian capital market businesses were affected by five factors in FY26.
SEBI's October 2024 F&O Regulations: Starting 1 October 2024, SEBI reduced weekly index options expiry dates to one per exchange per week, raised minimum contract sizes, tightened margins, and mandated "true-to-label" fee structures. Average daily equity derivatives turnover on NSE fell approximately 27% in the six months that followed.
Listed broker earnings collapsed across the board: a discount broker reported a 50% YoY PAT fall in Q2 FY26. IIFL Capital, a discount broker, and Motilal Oswal all reported 35–61% profit declines. HDFC Securities' annual PAT decline was 17%.
Market correction and IPO slowdown: The broader equity market corrected from September 2024 peaks, reducing IPO pipeline, equity trading activity, and mutual fund commissions simultaneously. Q4's volume recovery suggests stabilisation.
Risk Factors
01 No IPO Timeline
HDFC Securities has not announced any listing plans.
02 Regulatory Overhang
Further SEBI tightening on F&O, MTF, or distribution commissions remains a real risk. SEBI has been on an active regulatory drive with no certainty it stops here.
03 Rising Leverage (4.2x D/E)
The CP book matures through June 2026. Any credit market tightening or rate rise could force the company to shrink its lending book quickly — compressing interest income.
04 Unlisted Iiquidity
Unlike a discount broker on NSE, exits in unlisted shares can take time, bid-ask spreads are wide, and pricing is opaque.
05 Parent Dependency
HDFC Securities is a subsidiary of HDFC Bank. Any change in strategic priority at the parent level could materially impact the standalone entity.
06 CP Refinancing Risk
₹12,931 Cr in commercial papers outstanding — nearly double FY25. Interest rates between 7.25–7.90%. A credit crunch or rate spike could squeeze margins on the MTF book.
Disclaimer:
This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information as of April 2026. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.
