HBSL - HB Stockholdings

📊 NSE: HBSL 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 22:50

💰 Financial Performance

Revenue Growth by Segment

Total income for H1 FY26 (six months ended Sept 30, 2025) decreased by 43.16% YoY to INR 6.85 Cr from INR 12.05 Cr. Segment performance: Interest income fell 46.40% to INR 38.88 Lakhs; Dividend income grew 61.04% to INR 30.34 Lakhs; Net gain on fair value changes declined 30.23% to INR 4.58 Cr; and Net profit from equity derivative trading/share dealing plummeted 66.54% to INR 1.52 Cr.

Geographic Revenue Split

Not disclosed in available documents; however, the company is registered in Haryana, India, and operates primarily in the Indian capital markets.

Profitability Margins

Net Profit Margin for H1 FY26 was 40.78%, a significant decline from 54.49% in H1 FY25. This margin compression was driven by a 52.97% increase in total expenses (INR 3.47 Cr vs INR 2.27 Cr) despite the 43.16% drop in total income.

EBITDA Margin

PBT Margin for H1 FY26 stood at 48.44%, down from 81.17% in H1 FY25. The core profitability is highly volatile, as evidenced by the full-year FY25 results which showed a net loss of INR 11.73 Cr despite a profitable first half that year.

Capital Expenditure

Not disclosed in available documents; as an NBFC, the company focuses on financial asset allocation rather than physical infrastructure.

Credit Rating & Borrowing

Consolidated borrowings stood at INR 12.35 Cr as of September 30, 2025, an 8.98% reduction from INR 13.57 Cr as of March 31, 2025. Finance costs surged 970.68% YoY to INR 63.17 Lakhs in H1 FY26, indicating a sharp rise in borrowing costs or increased leverage utilization.

⚙️ Operational Drivers

Raw Materials

Not applicable for NBFC operations; the primary 'input' is capital for investment and trading.

Import Sources

Not applicable for NBFC operations.

Key Suppliers

Not applicable for NBFC operations.

Capacity Expansion

Not applicable for NBFC operations; the company's 'capacity' is defined by its net worth and borrowing limits, with total equity standing at INR 92.30 Cr as of Sept 30, 2025.

Raw Material Costs

Not applicable; however, finance costs (cost of capital) represent 18.2% of total expenses in H1 FY26, up from 2.6% in H1 FY25.

Manufacturing Efficiency

Not applicable; the company is an NBFC registered with the RBI.

Logistics & Distribution

Not applicable for NBFC operations.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to achieve growth by managing its investment portfolio and equity derivative trading activities. Strategy includes leveraging its wholly-owned subsidiary, Mount Finance Limited, and maintaining its status as an RBI-registered NBFC to capitalize on capital market opportunities.

Products & Services

Equity derivative trading, share dealing, and investment in equity instruments.

Brand Portfolio

HB Stockholdings Ltd, Mount Finance Limited.

🌍 External Factors

Industry Trends

The NBFC sector is seeing increased regulatory oversight from the RBI regarding capital adequacy and risk management. The industry is shifting toward digital-first trading and automated investment strategies, which HBSL must adopt to remain competitive.

Competitive Landscape

Competes with other investment-focused NBFCs, proprietary trading desks, and family offices in the Indian equity market.

Competitive Moat

The company's moat is its long-standing NBFC license (since 1985) and established presence in the Gurugram financial hub. However, this moat is narrow as it lacks significant cost leadership or network effects compared to larger institutional players.

Macro Economic Sensitivity

High sensitivity to Indian capital market performance and interest rate cycles; a 1% shift in market indices significantly impacts the INR 4.58 Cr fair value gain component.

Consumer Behavior

Not applicable as the company does not serve retail consumers directly.

Geopolitical Risks

Indirect impact through global market sentiment affecting Indian equity valuations and FII flows.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI regulations for Non-Banking Financial Companies (NBFCs), including capital adequacy norms and asset classification standards. Compliance with Ind AS 108 for segment reporting and SEBI listing requirements is also mandatory.

Environmental Compliance

Not applicable for NBFC operations.

Taxation Policy Impact

The effective tax rate for H1 FY26 was 15.8% (INR 52.46 Lakhs tax on INR 331.75 Lakhs PBT).

Legal Contingencies

Not disclosed in available documents; no major pending court cases or labor disputes were reported in the financial notes.

⚠️ Risk Analysis

Key Uncertainties

High earnings volatility is the primary risk; the company swung from a profitable H1 FY25 to a full-year FY25 net loss of INR 11.73 Cr, demonstrating that fair value gains can quickly reverse into losses.