HDFC Securities Unlisted Shares

Detailed Business Profile: HDFC Securities Limited (HSL)

HDFC Securities Limited (HSL) is a leading entity in India’s stock broking domain and a prominent subsidiary of HDFC Bank Limited. Celebrating its 25th year in FY 2024-25, HSL has evolved from a traditional broking house into a full-spectrum financial powerhouse that integrates research, advisory services, distribution, and discount broking.

The core strategy centers on leveraging cutting-edge technology to democratize market access and provide seamless, friction-less execution to a diverse clientele, ranging from first-time retail users to Ultra High-Net-Worth Individuals (UHNIs) and corporate treasuries. The company had 134 branches across 106 cities as of March 31, 2025, complementing its robust digital platforms.

1. Core Business and Product Offerings

HDFC Securities operates in a single line of business: providing broking services to clients in the capital market within India. The service bouquet is strategically divided across retail and wealth segments using differentiated platforms.

A. Digital Broking Platforms (Retail & Discount)

• HDFC SKY: This is HDFC Securities’ mobile-first discount broking platform, where flat brokerage meets proprietary insights and expert guidance. It offers zero brokerage on ETFs to appeal directly to the digitally native Gen Z segment, promoting value, transparency, and control.
• InvestRight: This is an RM-managed investment app, combining smart analytics and simple interfaces with personalized support from Relationship Managers (RMs).
• Customer Base: The total customer base has risen to 6.8 million (68,34,411). The company had over 1.65 million overall active clients in FY 2024-25.

B. Wealth Advisory (HNI, UHNI, and Corporate)

• HDFC TRU: Launched formally in October 2024, HDFC TRU is the dedicated platform for corporate treasuries, family offices, and Ultra-HNIs with over ₹ 50 Crore in deployable assets.
  • Services: HDFC TRU offers bespoke, multi-class advisory solutions covering Equity Advisory, Mutual Funds, Private Markets, Real Estate, Global Investments, PMS/AIF, and Commodities, all under one roof.
  • Methodology: The platform is powered by the PROSPr framework, a process-oriented methodology focused on deep domain expertise, tailored solutions, and a client-centric approach with transparent, fee-based advisory.
• HNI Desk: The dedicated HNI desk crafts bespoke portfolios focusing on multiclass asset allocation, alternative investments, and legacy-planning services.

C. Institutional Equities and Research

• Institutional Equities: This vertical focuses on secondary market trading and primary market deals, including INVITs and IPOs across sectors. Secondary market revenue for this segment was up approximately 30% year-on-year**. The team commenced trading with US clients during FY 2024-25, facilitated by a Chaperone agreement with Auerbach Grayson.
• Prime Research: Rebranded as "Prime Research," the retail research division provides superior investment opportunities backed by rigorous fundamental and technical analysis, integrated directly into digital platforms like HDFC SKY and InvestRight. Research coverage spans over 250 stocks.

2. Group Structure and Subsidiaries

HDFC Securities Limited is a majority-owned subsidiary of HDFC Bank Limited. The Group’s structure remains largely centralized, though a key subsidiary was incorporated during the year to capture international opportunities.

Note: The subsidiary HDFC Securities IFSC Limited is yet to commence its operations as of March 31, 2025.

3. Revenue Sources and Financial Performance (Standalone FY 2024-25)

The Company reported record trading volumes and revenue growth. The standalone total income increased by 23% to ₹ 3,265 Crore (₹ 3,26,486 lakh) in FY 2024-25. The Profit After Tax (PAT) grew by 18% to ₹ 1,125 Crore (₹ 1,12,502 lakh).

A. Core Operational Revenue Components (₹ in Crore)

Revenue from operations (₹ 3,263.80 Crore) is categorized primarily based on the services rendered to clients:

B. Ancillary Income and Expenses

• Other Income: ₹ 1.06 Crore (₹ 106 lacs).
• Finance Costs: Interest expense amounted to ₹ 785.45 Crore (₹ 78,545 lacs), primarily driven by interest expenses on financial liabilities.
• CSR Spending: The company’s CSR spend was ₹ 24.32 Crore (₹ 2,432 lacs) in FY 2024-25, slightly exceeding the statutory obligation of ₹ 24.23 Crore.

4. Recent Developments and Strategic Highlights (FY 2024-25)

The past year was defined by market democratization, capital actions, and strategic product rollouts.

Market and Customer Growth

• Retail Participation Surge: Over 30 lakh first-time investors entered the market through HDFC Securities. Nearly 45% of new accounts originated from non-metro regions (Tier-II & III).
• Record Volumes: Aggregate cash equity turnover crossed ₹ 8 Lakh Crore, marking a 24% year-on-year increase over FY 2023–24.
• MTF Growth: The Margin Trading Facility (MTF) portfolio grew 50% year-on-year in FY25, reaching a book size of ₹ 5,520 Crore (₹ 5,52,000 lacs) at year-end. The average MTF book size in FY25 was ₹ 932 Crore (₹ 9,32,00 lacs), a 71% increase from the previous year.
• Passive Investing Boom: The company responded to the surge in passive investments by introducing its zero-fee ETF offering on HDFC SKY. Mutual Fund AUM surpassed ₹ 25,000 Crore in FY25.

Corporate and Capital Actions

• International Subsidiary: The company established HDFC Securities IFSC Limited in GIFT City, Gandhinagar on October 1, 2024. This subsidiary is currently yet to commence operations.
• Right Issue: HDFC Securities successfully executed a Right Issue, allotting 16,84,781 equity shares during the period. This significantly increased the Net Worth by 65% to ₹ 3,349 Crore (₹ 3,34,859 lakh).
• Increased Borrowing Limit: The borrowing limits of the Company, specifically for placing Commercial Paper, were increased from ₹ 13,000 Crore to ₹ 20,000 Crore via a special resolution in the Annual General Meeting held on August 08, 2024.
• Dividend: The Board declared four interim dividends aggregating ₹ 507 per equity share (5070%) for the year ended March 31, 2025.