Hinduja Leyland Finance FY26 Results: Profit Growth, Asset Quality and What They Mean Before the NDL Merger

Most investors know Hinduja Leyland Finance for one reason: its planned merger into the listed NDL Ventures, which would give its shareholders listed shares without an IPO. The merger tells you how you may exit. It does not tell you whether the lending business behind the shares is getting stronger. For that you need the numbers, and the company has now published a full year of FY26 results and its first quarter of FY27. Income grew by more than a third in FY26, profit rose by about a fifth, and bad loans stayed within a narrow range. This article reads those filings line by line, explains what each ratio means for a shareholder, and sets out where the NDL Ventures merger stands as of 30 October 2026.

Key Takeaways

• Faster growth in FY26: Total income rose about 35 percent to ₹6,114.78 crore, from ₹4,513.36 crore in FY25.

• Higher profit: Profit after tax increased about 20 percent to ₹490.77 crore, and earnings per share rose to ₹9.00 from ₹7.63.

• Strong start to FY27: First-quarter profit was ₹122.53 crore, up about 37 percent from ₹89.34 crore a year earlier.

• Stable asset quality: Gross Stage 3 loans were 3.77 percent of the book at 30 June 2026, close to 3.63 percent at March 2025.

• Merger nearly done: Shareholders and creditors approved the NDL Ventures merger on 30 July 2026; the final tribunal sanction was still awaited at 30 October 2026.

What does Hinduja Leyland Finance do?

Hinduja Leyland Finance is a non-banking finance company (NBFC) based in Chennai and part of the Hinduja group, with Ashok Leyland as its parent. Its core business is lending for commercial vehicles, along with loans for small businesses and other retail segments. Interest on those loans makes up the bulk of its income, and the cost of the money it borrows is its biggest expense.

Why the results matter more than usual

Once the merger completes, Hinduja Leyland Finance shareholders will hold shares of a listed company whose value rests largely on this lending business. The listed market will price that business on its profit growth, its bad-loan levels and its capital strength. The FY26 numbers are the best guide to how that pricing may look.

Hinduja Leyland Finance results: FY25, FY26 and Q1 FY27

Source: Hinduja Leyland Finance audited results for the year ended 31 March 2025 and reviewed results for the quarter ended 30 June 2026 (which include the FY26 year column), as published on the company's website.

Income and profit growth

Income grew faster than profit in FY26. That is common for a lender in a growth phase: interest costs on new borrowing and provisions for future loan losses rise with the loan book before the full income from those loans arrives. The first quarter of FY27 suggests that gap is starting to close, with profit growing about 37 percent against the same quarter of the previous year.

What the margin tells you

The company reported a net profit margin of 6.80 percent for the June 2026 quarter, meaning about ₹6.80 of every ₹100 of operating revenue reached shareholders as profit. Lenders run on thin margins and high volumes, so small changes in borrowing costs or credit losses can move this figure noticeably.

Is Hinduja Leyland Finance's asset quality improving?

For any lender, the key question is how many borrowers stop paying. Indian NBFCs report this through Stage 3 loans, the accounting category for loans in default.

Reading the asset-quality table

Gross bad loans edged up slightly, but net bad loans fell because the company set aside more money against them, lifting provision coverage to 46.07 percent. That is a cautious sign: more of the possible losses are already absorbed in the accounts.

Capital and borrowing

Capital adequacy of 19.43 percent is comfortably above the 15 percent minimum the RBI sets for NBFCs, which leaves room to keep growing the loan book. Debt to equity rose to 5.57 times as the company borrowed to fund that growth. More borrowing lifts returns when loans perform and magnifies losses when they do not.

What the merger with NDL Ventures means for these numbers

Under the scheme, shareholders receive 25 NDL Ventures shares for every 10 Hinduja Leyland Finance shares, with an appointed date of 1 April 2026. Shareholders and creditors of both companies approved the scheme at tribunal-convened meetings on 30 July 2026, after the earlier procedural steps we covered when the NCLT cleared the merger process. The Mumbai bench of the NCLT admitted the petition on 13 August 2026 and listed the final hearing for 18 September 2026. We found no public report of the final sanction order as of 30 October 2026, so the record date for the share swap has not been announced.

Why the results feed into the listed price

After the swap, the listed share price will reflect how investors value this lending business against listed NBFC peers. Profit growth, steady bad-loan ratios and strong capital tend to support a higher valuation; any slip in asset quality would weigh on it. The ratio mechanics, timing and tax treatment of the swap are covered in our earlier guide to the Hinduja Leyland Finance share price and NDL Ventures merger.

Hinduja Leyland Finance valuation at today's price

Indicative price as on 30 October 2026, based on the We Grow Wealth quote. Unlisted shares are not traded on any stock exchange and are not regulated by SEBI. Prices are not guaranteed and may differ at the time of the deal.

For the current quote at any time, see the Hinduja Leyland Finance unlisted share price page.

Putting the multiples in context

Lenders are usually compared on price to book, because their book value is mostly loans and capital. About 1.5 times book suggests the market expects returns on equity to improve from current levels. Whether that happens depends on keeping credit costs in check while the loan book grows.

Risks shareholders should weigh

Credit cycle

Commercial vehicle lending is tied to freight demand, fuel prices and the health of small transport operators. A slowdown in any of these tends to show up in rising Stage 3 loans within a few quarters.

Funding costs and borrowing

At 5.57 times debt to equity, the company is sensitive to the price of borrowed money. If interest rates or credit spreads rise, margins can narrow quickly.

Merger timing and listing

The final sanction, the record date and the listing of new NDL Ventures shares all still have to happen. Delays are common in tribunal processes, and the listed price after the swap may differ from today's unlisted quote.

Liquidity before listing

Until the swap completes, there is no exchange on which to sell Hinduja Leyland Finance shares, so selling depends on finding a buyer. Our comparison of unlisted and listed shares explains how liquidity and price discovery change once shares list.

Three numbers to track in the next results

The next quarterly filing will show whether the first-quarter profit jump continues. Watch gross Stage 3 loans, which would ideally stay below 4 percent as the book grows. Watch provision coverage, where a further rise would mean more cushion against losses. And watch capital adequacy, which needs to stay well above the regulatory floor if growth is to continue without fresh equity. Together these three will say more about the value of the shares after listing than any short-term movement in the unlisted price.

Disclaimer: This content is for information and education only and is not investment advice or a recommendation to buy, sell or hold any security. Unlisted shares are not traded on any stock exchange and are not regulated by SEBI; investors do not get exchange or SEBI investor-protection or dispute-resolution mechanisms. Prices shown are indicative, are negotiated privately, may differ across platforms and are not guaranteed. Unlisted shares can be hard to sell and you may lose part or all of your investment. An expected IPO may be delayed or may not happen; if the company lists, pre-IPO shares are locked in for 6 months from the date of IPO allotment. Tax treatment is as per law on the date of publication and may change. We Grow Wealth earns a margin on the difference between its buy and sell prices. Please consult a qualified adviser before investing.