HDFC Securities Limited (HDFC Securities) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
HDFC Securities Limited

HDFC Securities Limited Consolidated Balance Sheet (Rs. in Crores)

Particulars	31-03-2026	31-03-2025
Financial Assets
Cash and cash equivalent	1,794.05	830.98
Bank balances other than cash	7,838.73	4,862.46
Securities held for trading	172.62	143.39
Trade receivables	1,425.74	1,176.54
Loans	7,132.66	5,511.87
Investment	2,747.00	1,050.87
Other financial assets	245.72	93.23
Non-Financial Assets
Current tax assets	44.80	42.19
Deferred tax assets	15.57	0.52
Investment property	12.86	13.14
Plant, property and equipment	75.08	76.47
Right of use assets	68.45	71.37
Capital work in progress	0.75	-
Intangible assets under development	6.10	7.32
Intangible assets	78.23	84.24
Other non financial assets	125.47	66.07
Total assets	21,783.83	14,030.66
Equity
Equity share capital	17.87	96.52
Other equity	3,574.69	3,330.25
Financial Liabilities
Trade payables – outstanding dues of micro and small enterprises	0.18	0.38
Trade payables – outstanding dues other than above	2,672.98	2,395.84
Debt securities	12,931.33	7,741.52
Borrowing	2,182.55	202.25
Lease liabilities	83.34	85.63
Other financial liabilities	197.56	160.50
Non Financial Liabilities
Current tax liabilities	3.84	3.97
Provisions	32.91	24.44
Other non financial liabilities	86.58	68.11
Total equity and liabilities	21,783.83	14,030.66

HDFC Securities Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2026	31-03-2025
Income
Revenue from Operations	3,107.49	3,263.80
Other Income	2.73	0.75
Total Income	3,110.22	3,264.55
Expenses
Finance cost	817.48	785.45
Impairment on financial instrument	11.73	6.00
Employee benefit expense	576.54	480.40
Depreciation & amortization expense	82.87	69.62
Other Expenses	387.91	427.49
Total Expenses	1,876.53	1,768.96
Profit/(loss) before tax	1,233.69	1,495.59
Current Tax expenses	309.47	374.96
Deferred tax expense	-2.36	-3.83
Profit/ Loss for the period from continuing operation	926.58	1,124.46
Other comprehensive income for the year
Items that will not be classified to profit/loss
Remeasurement gain/(loss) on defined benefit plan	-1.85	-2.76
Income tax relating to items above	0.47	0.69
Items that will be classified to P/L
Changes in fair value of FVOCI debt instrument	-50.42	-
Foreign currency translation reserve	0.56	-
Income tax relating to above	12.69	-
Total comprehensive income for the year	888.03	1,122.39
Earning per share
Basic	519.75	637.51
Diluted	518.05	635.21

HDFC Securities Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2026	31-03-2025
Cash Flow from Operating Activities
Net Profit/(loss) Before Tax	1,233.69	1,495.59
Adjustment for -:
Depreciation and amortisation expense	82.87	69.62
Share based payment expense	32.51	44.41
Impairment on financial instrument	11.73	6.00
(profit)/loss on sale of PPE	0.01	0.43
Rental income on investment property	-2.54	-2.21
Change in fair value of investment	-70.09	-88.10
Foreign currency translation	0.56	-
Finance cost	810.16	781.04
Interest income	-111.89	-53.31
Dividend income	-0.89	-1.14
Adjustment for change in working capital
Other bank balances	-2,976.27	-284.72
Trade receivables	-260.18	104.05
Loans	-1,620.79	513.38
Other financial assets	-137.49	-0.77
Non financial assets	-59.92	-18.65
Trade payables	276.80	221.69
Other financial liabilities	36.95	-51.57
Provisions	6.63	6.67
Other non financial liabilities	18.46	17.28
Cashflow generated from operations	-2,729.69	2,759.69
Direct taxes paid	-311.74	-378.72
Net Cash from/(used in) Operating Activities	-3,041.43	2,380.97
Cash Flow from Investing Activities
Purchase of PPE	-120.61	-161.92
Sale of PPE	51.32	67.96
Rental income on investment property	2.54	2.21
Purchase of investment	-1,783.79	-144.34
Sale of investment property	63.11	43.51
Dividend received	0.89	1.14
Interest received	111.89	53.31
Net Cash from / (used in) Investing Activities	-1,674.65	-138.13
Cash Flow from Financing Activities
Proceeds from issue of share capital	0.10	1.80
Proceeds from issue of other equity	-55.87	-18.71
Proceeds from issuance of securities premium	119.82	1,084.05
Share application money	-	-16.83
Lease liabilities	-4.89	7.84
Amount received from debt securities	54,372.11	38,661.26
Redemption of debt securities	-47,202.00	-40,250.00
Bank guarantee charges	-4.44	-3.99
Interest paid – others	-805.63	-777.05
Dividend paid including dividend tax	-740.05	-898.34
Net Cash from/(used in) Financing Activities	5,679.15	-2,209.97
Net Increase/decrease in Cash & cash equivalents	963.07	32.87
Cash and cash equivalents at the beginning of the year	830.98	798.11
Cash and cash equivalents at the end of the year	1,794.05	830.98

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

HDFC Securities Limited generated a profit before tax of ₹1,233.69 crore during FY2025-26 compared to ₹1,495.59 crore in FY2024-25. After considering non-cash adjustments such as depreciation, finance cost, impairment on financial instruments, share-based payment expenses, and fair value changes in investments, the company witnessed a substantial increase in working capital deployment. Major cash outflows arose from higher other bank balances, increased loans, rise in trade receivables, and growth in other financial assets, indicating expansion in operational activities and lending business. Consequently, cash generated from operations turned negative at ₹2,729.69 crore compared to a strong positive operational cash generation of ₹2,759.69 crore in the previous year. After payment of direct taxes amounting to ₹311.74 crore, net cash used in operating activities stood at ₹3,041.43 crore against net cash generated of ₹2,380.97 crore in FY2024-25.

Cash Flow from Investing Activities

Net cash used in investing activities increased significantly to ₹1,674.65 crore during FY2025-26 from ₹138.13 crore in FY2024-25. The higher outflow was mainly attributable to substantial purchase of investments amounting to ₹1,783.79 crore and capital expenditure towards purchase of property, plant, and equipment. However, the company partially offset these outflows through proceeds from sale of property and investments, along with receipt of interest income, dividend income, and rental income from investment property. The investing cash flow pattern reflects increased investment deployment and continued expansion of the company’s asset base.

Cash Flow from Financing Activities

Financing activities remained the primary source of liquidity for the company during FY2025-26, resulting in a net cash inflow of ₹5,679.15 crore compared to a net cash outflow of ₹2,209.97 crore in the previous year. The strong inflow was primarily driven by proceeds from issuance of debt securities amounting to ₹54,372.11 crore and securities premium received during the year. These inflows were partially offset by redemption of debt securities, payment of interest expenses, dividend payouts, and bank guarantee charges. The positive financing cash flow indicates the company’s increased reliance on borrowings and market instruments to support operational expansion and investment activities.

Net Increase in Cash and Cash Equivalents

As a result of the above movements, cash and cash equivalents increased substantially by ₹963.07 crore during FY2025-26 compared to an increase of ₹32.87 crore in FY2024-25. Consequently, closing cash and cash equivalents stood at ₹1,794.05 crore as on 31 March 2026 against ₹830.98 crore at the end of the previous financial year, reflecting a significantly improved liquidity position

Financial ratios of HDFC Securities Limited.

Particulars	31-03-2026	31-03-2025
Current ratio	1.01	1.19
Debt to equity ratio	4.20	2.37
Debt service coverage ratio	0.13	0.27
Interest service coverage ratio	2.51	2.91
Current liability ratio	1.00	0.99
Total debts to total assets	0.69	0.57
Debt turnover ratio	2.18	2.77
Operating profit ratio	40%	46%
Net profit margin	30%	34%

Summary of Financial Ratios for the year 2026 and 2025.

Current ratio

The current ratio of HDFC Securities Limited declined from 1.19 in FY 2024-25 to 1.01 in FY 2025-26, indicating a reduction in short-term liquidity. Although the ratio remains marginally above 1, suggesting that current assets are still sufficient to meet current liabilities, the decline reflects tighter working capital management and relatively higher short-term obligations during the year. The company may need to closely monitor liquidity to maintain operational flexibility.

Debt to equity ratio

The debt-to-equity ratio increased significantly from 2.37 to 4.20 during FY 2025-26, indicating a substantial rise in leverage. This suggests that the company relied more heavily on borrowed funds compared to shareholders’ equity for financing its operations and expansion activities. A higher leverage ratio may improve returns during favourable market conditions; however, it also increases financial risk and repayment obligations.

Debt service coverage ratio

The debt service coverage ratio declined sharply from 0.27 in FY 2024-25 to 0.13 in FY 2025-26. This indicates reduced ability of the company to generate sufficient operating income to meet its debt servicing commitments, including principal and interest repayments. The low ratio reflects pressure on cash earnings relative to debt obligations and highlights increased financial strain arising from higher borrowings.

Interest service coverage ratio

The interest service coverage ratio decreased from 2.91 to 2.51 during the year, suggesting a decline in the company’s ability to cover interest expenses through operating profits. Despite the decline, the ratio remains above 2, indicating that the company still maintains a reasonable capacity to meet interest obligations. However, the downward movement reflects increased finance costs and relatively lower profitability growth.

Current liability ratio

The current liability ratio increased marginally from 0.99 to 1.00 in FY 2025-26, indicating that current liabilities continued to constitute a major portion of total liabilities. The stable ratio suggests consistency in the company’s liability structure, with short-term obligations remaining significant in the overall financing mix.

Total debts to total assets

The total debts-to-total-assets ratio rose from 0.57 in FY 2024-25 to 0.69 in FY 2025-26, reflecting higher dependence on debt financing for asset creation. This indicates that nearly 69% of the company’s assets were financed through debt during the year. The increase points toward aggressive leverage utilisation and a relatively higher financial risk profile.

Debt turnover ratio

The debt turnover ratio declined from 2.77 to 2.18 during FY 2025-26, suggesting lower efficiency in generating revenue relative to total debt levels. The decrease indicates that the increase in borrowings was not matched proportionately by revenue growth, thereby reflecting comparatively lower utilisation efficiency of debt-funded resources.

Operating profit ratio

The operating profit ratio decreased from 46% in FY 2024-25 to 40% in FY 2025-26. This decline indicates a reduction in operational profitability, possibly due to increased operating expenses, competitive pressures, or changes in revenue composition. Despite the decline, the ratio remains strong, demonstrating that the company continues to maintain healthy operating margins.

Net profit margin

The net profit margin declined from 34% to 30% during FY 2025-26, reflecting reduced overall profitability after accounting for all expenses, interest, and taxes. The decrease suggests pressure on bottom-line earnings, likely due to higher finance costs and operating expenses. Nevertheless, a 30% net margin still indicates robust profitability and efficient overall business performance relative to industry standards.