CRISIL

Hinduja Group is aiming for a value creation of $35-40 billion in the banking, financial services, and insurance (BFSI) sector in the next five to seven years by adding more verticals to fill up the gaps.The group is diversifying and has plans to get into the new tech, digital and fintech as part of its new phase of growth and fill gaps through acquisitions to have complete offerings in the BFSI sector

BackBack Hinduja Group aims for value creation of $35-40 bn in BFSI sector, confident of acquiring Reliance Capital

Crisil has upgraded Hinduja Leyland Finance Ltd. (HLF) rating to AA+/Stable from AA/ Stable and A1+ rating for the Commercial Paper (CP), ahead of the latter listing with NDL Ventures Ltd. This upgrade reflects the company’s strong financial performance, robust asset quality, and solid liquidity position, reinforcing its long-term financial stability and prudent governance practices, said the Hinduja group firm in a statement. The improved rating of CP demonstrates confidence in Hinduja Leyland Finance’s diversified resource profile, supported by well-balanced borrowings from both banks and capital markets. As of June 2024, HLF managed assets worth ₹51,593 crore (₹39,232 crore). It achieved a 28% CAGR growth in Assets Under Management and 57% in disbursements, which resulted in 36% growth in bottom line.

Crisil upgrades Hinduja Leyland Finance Ltd. rating ahead of its listing

The Reserve Bank of India (RBI) has cleared the merger scheme of its subsidiary Hinduja Leyland Finance with NDL Venture. In receipt of a no-objection certificate from the RBI for the proposed scheme of merger of Hinduja Leyland Finance with NDL Ventures,” the commercial vehicle maker said in a regulatory filing. The company said it will now move ahead with the next steps for the merger, including regulatory, shareholder and other approvals.

RBI clears merger of Hinduja Leyland Finance with NDL Ventures

Asset quality remains stable and range-bound (3.0%–4.0%), with consolidated 90+ dpd improving to 2.8% as of September 2025. This is supported by a strong ~107% collection efficiency, including robust overdue recoveries. While housing finance is steady, the performance of the newer non-vehicle loan segment remains the primary monitorable for future credit health.


Earnings remain moderate, with H1 FY2026 RoMA dipping to 0.7% (standalone) and 1.0% (consolidated). Despite improved NIMs (3.1%), profitability was pressured by credit costs doubling to 2.0% due to revised ECL provisioning. While higher-yield housing and LAP segments support the consolidated top line, the declining return trend remains a key monitorable.


The issuer has made timely interest payments.

Mr. Dheeraj G Hinduja  Chairman

Mr. Sachin Pillai, MD& CEO

As of September 2025, the Hinduja Group owns 74.5% of HLF, with Ashok Leyland (ALL) holding 61.1%. HLF is strategically critical, financing 24% of ALL’s assets. To facilitate a public listing, HLF is merging into NDL Ventures (target date: April 1, 2026). Post-listing, ALL will remain the largest majority shareholder, maintaining its brand alignment and support for HLF.


Standalone AUM reached Rs 52,635 crore by September 2025 (20% annualized growth), led by CV financing. The portfolio includes 67% vehicle loans (48% CV/CE/Tipper, 11% 2/3-wheelers, 8% others), 28% LAP, and 5% buyouts. Spanning 1,750+ locations, HLF's consolidated AUM hit Rs 67,538 crore, with housing finance contributing 22%.


HLF maintains comfortable capitalization, with standalone net worth rising to Rs 8,149 crore and stable gearing at 5.0 times. Consistently, consolidated net worth grew to Rs 9,755 crore, with gearing improving to 5.1 times. CRISIL expects steady-state gearing to remain under 6 times.




HLF maintains a diversified funding base: 73% bank borrowings (spanning PSU and private banks), 17% securitization, and 10% capital market instruments. The cost of borrowings remained stable at 8.5% for H1 fiscal 2026.


Security Name: 9.50% Hinduja Leyland Finance Limited 29 Nov 2029

ISIN: INE146O08266

YOUR EARNING

YOUR RISK

Repayment Priority

Security with Collateral?

LIQUIDITY INDICATOR #

ISSUER

Recent News

Related Videos

STEPS TO BUY THIS BOND

Information required for KYC

How to exit the investment?