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

HLF’s consolidated GNPA improved to 2.8% by September 2025, with standalone NNPA dropping to 2.0% due to better collections and write-offs. Restructured assets fell to 0.5% of AUM, though early 2W delinquencies saw a slight uptick. Overall, 30+ DPD remains steady at 10%, with asset quality supported by lower security receipts and improved collection efficiency.


HLF’s FY25 consolidated PAT hit ₹774 crore with a 1.5% ROTA, supported by ₹1,692 crore in PPOP and ₹909 crore in fair value gains. Despite rising costs and compressed NIMs, profitability remains resilient. By H1FY26, PAT reached ₹352 crore, though ROTA dipped to 1.2% due to higher write-offs and provisioning at HHFL. Performance is expected to remain stable, bolstered by recurring income from Direct Assignments.


The issuer has made timely interest payments.

Mr. Dheeraj G Hinduja  Chairman

Mr. Sachin Pillai, MD& CEO

As a strategic subsidiary of Ashok Leyland (ALL), HLF finances 10–11% of its parent's market share, with ALL vehicles comprising ~25% of its AUM. Leveraging the global Hinduja Group’s presence, HLF enjoys strong financial flexibility and competitive funding. Given its strategic importance, CareEdge Ratings expects continued need-based support from ALL to HLF.


The Hinduja Group leverages a proven track record in financial services, supported by HLF’s experienced leadership and senior management. Its eight-member board includes four independent directors with deep industry expertise, ensuring professional oversight of day-to-day operations.


HLF maintains a diversified funding base, primarily reliant on bank borrowings (~76–78%). As of September 2025, the mix included NBFC/FI loans (7%), subordinated debt (6.9%), and an increasing share of ECBs (5.1%) and NCDs (4.3%). Off-balance sheet funding via Direct Assignments reached ₹8,477 crore. CareEdge Ratings expects HLF to further shift toward capital market instruments in the medium term.



HLF’s consolidated net worth reached ₹8,694 crore by March 2025, fueled by internal accruals and a ₹200 crore equity infusion from ALL. Standalone capital is robust (18.7% CAR), with gearing stable at 5.1x. Beyond vehicle finance, HLF supports subsidiaries like HHFL (Housing) and digital platforms Gro Digital and Gaadimandi. CareEdge expects gearing to remain under 6x through continued group support.


HLF’s consolidated AUM grew 25% to ₹61,692 crore in FY25, reaching ₹67,358 crore by September 2025, while housing subsidiary HHFL rose to ₹14,903 crore. The portfolio is dominated by HCV, LAP, and CE (60.4%), with a strategic shift toward 2W (8.9%) and reduced wholesale exposure (5.6%). Focused primarily on new vehicles (83% of AUM), HLF operates across 23 states, with the top three regions representing 41% of its business.

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

ISIN: INE146O08266

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