HDB

HDFC Bank is a premier franchise putting up powerful top-line growth: revenue climbed from $10.7B (FY2021) to $25.6B (FY2025), +15.2% in the latest year, with net income rising steadily to $7.88B at a fat 30.8% net margin. Cash generation backs it up — operating cash flow of $14.0B (+14.1%) — while long-term debt fell -13.9% and equity grew +7.8%. The 5.15x liabilities/equity is normal leverage for a bank, so the balance sheet looks sound and self-funding, and the 78% jump in dividends paid signals management confidence in capital return.

The catch is per-share economics and returns on capital. Despite net income +5.5%, diluted EPS slipped -1.0% to $1.04 as the share count edged up — the step-change in revenue from FY2023 ($13.8B) to FY2024 ($22.2B) reflects the HDFC Ltd merger, which has diluted holders and dragged ROE down to just 8.8%, low for a bank that historically earned mid-teens. So while the franchise is growing, earnings power per share is essentially treading water right now.