HDFC Securities Ltd
HDFC Bank's 95%-owned broking and wealth arm, earning over ₹1,000 Cr a year with a tiny free float of unlisted shares.
Market cap
₹12,704 Cr
1.59 Cr shares
P/E ratio
11.28
Sector average 20
Book value
₹1,708.11
P/B 4.68
1-year return
-5.98%
52w ₹6,392 – ₹9,988
Currently 44% of the way through its 52-week range.
Indicative price history
1Y change
-6.40% ₹8,536 → ₹7,990
52-week band in this window: ₹7,511.59 – ₹8,536.09. Weekly indicative marks, not exchange-traded prices.
Key highlights
- About 95% owned by HDFC Bank; free float under 5% trades in the unlisted market.
- FY25 total income about ₹3,265 Cr and PAT about ₹1,126 Cr; FY24 PAT ₹951 Cr; FY23 PAT ₹777 Cr.
- EPS above ₹700 on 1.59 Cr shares; quote of ₹7,990 is roughly 11x earnings.
About HDFC Securities
HDFC Securities Limited is the retail and institutional broking subsidiary of HDFC Bank, incorporated in Mumbai on 17 April 2000. It offers equity, derivatives, currency and commodity broking, mutual funds, IPO distribution, margin trading, research and wealth services through the HDFC Sky app, branches and the bank's relationship network. HDFC Bank owns about 95% of the equity; the remainder is held by employees and legacy shareholders and is what trades in the unlisted market.
The company is one of India's most profitable brokers. Total income rose from roughly ₹1,891 Cr in FY23 to ₹2,632 Cr in FY24 and about ₹3,265 Cr in FY25, with profit after tax growing from about ₹777 Cr to ₹951 Cr and then about ₹1,126 Cr. Margin trading funding, financed by commercial paper, has become a large earnings driver alongside brokerage and distribution fees. The company pays out most of its earnings as dividends to HDFC Bank.
With only about 1.59 Cr shares outstanding (paid-up capital ₹15.9 Cr, face value ₹10), earnings per share exceed ₹700, so the unlisted quote of ₹7,990 is roughly 11 times FY25 earnings, a discount to listed peers such as Angel One and Motilal Oswal. HDFC Bank has said it has no plans to list the subsidiary and has treated the stake as core.
Figures are compiled from HDFC Bank annual reports and press coverage of HDFC Securities' results as remembered at the time of writing; the search budget was exhausted before they could be re-verified, so line items are reconstructed around reported totals; treat them as approximate.
Where the revenue comes from
- Brokerage income45%
Equity, derivatives, currency and commodity broking
- Interest income (margin trading & fixed income)35%
Margin trading funding and treasury
- Distribution, wealth & other20%
Mutual funds, IPOs, insurance, PMS and research
Products & services
HDFC Sky
Discount-broking app for equities, F&O, mutual funds and IPOs.
Full-service broking & advisory
Relationship-managed broking, research and PMS distribution through branches and the bank.
Margin trading funding
Funded stock purchases financed by commercial paper, a major earnings driver.
Distribution
Mutual funds, insurance, bonds, NPS and IPO applications.
What works
- • Captive access to HDFC Bank's 90-million-plus customer base and branch network drives low-cost client acquisition.
- • Consistently high profitability: PAT of about ₹1,126 Cr in FY25 with return on equity above 40% and a track record of large dividends.
- • Diversified revenue across brokerage, margin funding, distribution and wealth management, cushioning the impact of SEBI's derivatives curbs.
What to watch
- • Free float is under 5% and HDFC Bank has no listing plans, so liquidity depends entirely on the dealer market.
- • SEBI's 2024–25 restrictions on weekly index options and higher lot sizes have reduced retail derivatives volumes, a key revenue source.
- • Discount brokers (Zerodha, Groww, Angel One) continue to take share in active clients, pressuring brokerage yields.