Hero Fincorp Unlisted Shares

Hero Fincorp Ltd. is the financial services arm of Hero MotoCorp Ltd., offering solutions like two-wheeler financing, SME lending, and personal loans. Established in 1992 as Hero Honda FinLease Limited, it was renamed after Hero MotoCorp acquired full ownership post Honda's exit from their joint venture.

The company has a vast presence with nearly 2000 retail outlets, 2000 corporate clients, and 1000 dealerships across 1900 cities, towns, and villages. It holds a “AA+ (Stable)” rating from CRISIL, ICRA, and CARE.

Timeline

1. 1991-2012: Incorporated as Hero Honda Finlease Ltd. | Renamed as Hero Fincorp Ltd.
2. 2013-19: Received equity infusion of INR 106 Cr. | Launched Two-Wheeler Financing business, Used Car Business | 3000 touchpoints in 1700+ locations
3. 2020: Achieved the status of India's No.1 Two-Wheeler Financier. | Among the Top 3 NBFCs in Pre-Owned Car Loans. | Secured a fund-raising agreement of INR 1,075 Cr. from PE Investors & Promoters.
4. 2021: Launched a Customer Service App. | Introduced 'SimplyCash', a digital Loan Product.
5. 2022: Launched Partnership Loans and achieved Disbursal of INR 1,900 Cr.+ in the first year.
6. 2023: Achieved the highest-ever Disbursals  in FY23 | Launched EV Financing |  Crossed 10 Mn. Customers | Recognized as 'Great Place to Work' for the 6th year in a row.
7. 2024: Achieved ₹53,642 Cr AUM & ₹34,463 Cr disbursals; new brand identity; 11 Mn lives touched.

Product Portfolio

The Company provides a wide portfolio of financial products including:

Subsidiary: Hero Housing Finance Ltd.

1. Hero Housing Finance Limited (HHFL) is a wholly owned subsidiary of HFCL subsidiary of Hero Fincorp Ltd.
2. HHFL commenced its lending operations from April, 2018. 
3. Products: Housing loans, loan against property and construction loans.

Key Consolidated Financials (in ₹ Cr)

Strategic Insights & Business Analysis

Hero FinCorp (HFCL) is executing a strategic pivot toward a safer, technology-driven lending model.  . Backed by the strong brand equity of the Hero Group, the company is embedding artificial intelligence (AI) across its operations to automate loan approvals, improve credit selection, and optimize loan collections across urban and rural India..

Key Takeaways:

• Accounting Rule Impact vs. Core Profits: The reported net loss of ₹226.01 Cr in FY26 is primarily due to an Ind AS accounting rule requiring Compulsorily Convertible Preference Shares (CCPS) to be treated as liabilities and marked to market through the P&L statement. On an adjusted operational basis (treating CCPS as equity per the Companies Act), the business generated a positive net profit.

• Pivot to Secured, Low-Risk Assets: HFCL intentionally reduced its exposure to high-risk, unsecured digital consumer loans.  . Instead, it channeled capital into lower-risk, secured products like two-wheeler financing, used car loans, and housing finance through its subsidiary, Hero Housing Finance Ltd (HHFL).

• Significant Asset Quality Cleanup: AI-driven credit checks and smarter collection engines helped reduce bad loans substantially.  . Consolidated Gross Non-Performing Assets (GNPA) improved from 5.1% in H1 FY26 down to 4.0% in H2 FY26.

• Strong Subsidiary Performance: Hero Housing Finance (HHFL) delivered a standout performance with Profit After Tax (PAT) surging 57.5% YoY to ₹80.49 Cr.

• Lower Borrowing Costs & Healthy Capital: Average borrowing costs declined from 8.6% in FY25 to 8.2% in FY26. . The Capital Adequacy Ratio (CAR) stands at 16.80%, safely above the RBI regulatory threshold of 15.0%.

• Public Listing Roadmap: With its Initial Public Offering (IPO) prospectus (DRHP) already reviewed by SEBI, HFCL is preparing for its public market debut to support long-term growth..

Hero Fincorp Annual Report 2025-2026

Hero Fincorp Financials 2024-2025

Hero Fincorp Annual Report 2023-2024

Hero Fincorp Annual Report 2022-2023

Hero Fincorp Company Deck