Hero FinCorp Limited (Hero Fincorp) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Hero FinCorp Limited

Hero FinCorp Limited Consolidated Balance Sheet (Rs. in Crores)

Particulars	31-03-2026	31-03-2025
Financial Assets
Cash and cash equivalent	416.03	1,064.60
Bank balances other than cash	76.89	67.40
Derivative financial instrument	608.20	114.91
Trade receivables	42.17	27.40
Loans	54,322.68	53,815.30
Investment	3,173.60	2,556.14
Other financial assets	370.44	355.28
Non-Financial Assets
Current tax assets	228.40	165.50
Deferred tax assets	347.22	463.53
Plant, property and equipment	155.32	172.19
Capital work in progress	-	1.55
Right of use asset	97.31	112.47
Intangible assets under development	52.00	18.15
Other Intangible assets	96.91	73.66
Other non financial assets	204.47	134.16
Total assets	60,191.64	60,042.39
Equity
Equity share capital	129.63	127.41
Other equity	5,770.12	5,625.74
Non controlling interest	10.66	7.61
Financial Liabilities
Trade payables – total outstanding dues of micro and small enterprises	3.92	4.91
Trade payables – total outstanding dues other than above	568.31	527.24
Debt securities	5,884.44	7,174.74
Borrowing	40,642.36	40,782.99
Subordinated liabilities	6,123.60	4,996.91
Lease liabilities	109.36	123.87
Other financial liabilities	740.17	498.92
Non Financial Liabilities
Current tax liabilities	4.84	10.05
Deferred tax liabilities	19.43	5.05
Provisions	105.48	75.68
Other non financial liabilities	79.32	81.27
Total equity and liabilities	60,191.64	60,042.39

Hero FinCorp Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2026	31-03-2025
Income
Revenue from Operations	9,583.26	9,832.73
Other Income	10.15	70.60
Total Income	9,593.41	9,903.33
Expenses
Finance cost	3,766.43	3,827.71
Net loss on fair value changes	545.48	302.80
Impairment on financial instrument	2,521.86	2,884.09
Employee benefit expense	793.88	729.84
Depreciation & amortization expense	100.87	95.97
Other Expenses	1,940.02	1,806.83
Total Expenses	9,668.54	9,647.24
Profit before tax and exceptional items	-75.13	256.09
Exceptional items	26.08	-
Profit/(loss) before tax	-101.21	256.09
Current Tax expenses	19.52	226.45
Deferred tax expense	105.28	-80.31
Profit/ Loss for the period from continuing operation	-226.01	109.95
Other comprehensive income for the year
Items that will not be classified to profit/loss
Remeasurement gain/(loss) on defined benefit plan	0.63	6.19
Income tax relating to items above	-0.16	-1.56
Items that will be classified to P/L
Cashflow hedge reserve	104.36	-42.33
Income tax relating to above	-26.26	10.71
Total comprehensive income for the year	-147.44	82.96
Earning per share
Basic	-17.56	8.63
Diluted	-17.56	8.62

Hero FinCorp Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2026	31-03-2025
Cash Flow from Operating Activities
Net Profit/(loss) Before Tax	-101.21	256.09
Adjustment for -:
Interest income	-8,253.89	-8,587.01
Interest on income tax refund	-2.93	-5.36
Finance costs	3,766.43	3,827.73
Depreciation and amortisation expense	100.87	95.97
Impairment on financial instrument	2,521.86	2,884.10
Dividend income from investment	-0.02	-0.02
Employee share based payment expense	14.71	27.81
Net loss on sale of property, plant and equipment	2.14	1.60
Net gain on modification of lease	-0.04	-3.75
Gain on depreciation	-185.36	-134.82
Net loss on fair value changes	545.47	302.80
Profit on sale of investment	-96.28	-44.62
Cashflow from interest on loans	8,046.65	8,264.10
Cash inflow from interest on fixed deposits	21.58	12.31
Cash outflow towards finance costs	-3,607.50	-3,920.22
Adjustment for change in working capital
Trade receivables	-13.06	-17.33
Loans	-2,905.77	-6,606.29
Bank balances and other cash and cash equivalent	-10.80	-6.98
Other financial assets	94.83	-39.75
Non financial assets	-68.06	-50.01
Other financial liabilities	233.10	-19.72
Trade payables	40.09	93.32
Other non financial liabilities	-1.95	6.39
Provisions	29.14	12.00
Cashflow generated from operations	170.00	-3,651.67
Direct taxes paid	-84.54	-262.00
Net Cash from/(used in) Operating Activities	85.46	-3,913.66
Cash Flow from Investing Activities
Purchase of PPE	-28.43	-43.96
Purchase of other intangible assets	-77.52	-76.01
Proceeds from Sale of PPE	5.07	4.09
Dividend received	0.02	0.02
Interest received on investment	108.26	114.05
Purchase of investment	-17,971.77	-12,877.44
Sale of investment	17,471.24	12,286.10
Net Cash from / (used in) Investing Activities	-493.13	-593.15
Cash Flow from Financing Activities
Proceeds from issue of share capital	310.00	6.33
Proceeds from conversion of partly paid equity shares to fully paid	-	-
Proceeds from issue of equity shares	0.96	0.94
Share issue expense paid	-13.52	-
Proceeds from issue of debt securities	4,173.95	9,572.05
Repayment of debt securities	-5,680.02	-8,989.10
Proceeds from issue of borrowing	22,979.88	24,671.56
Repayment of borrowing	-23,444.28	-19,744.50
Proceeds from issue of subordinated liabilities	750.00	1,085.00
Repayment of subordinated liabilities	-100.00	-
Principle portion of lease payment	-35.10	-28.81
Interest portion of lease payment	-8.51	-13.53
Dividend paid on equity shares	-14.26	-127.31
Dividend paid on CCPS	-60.00	-60.00
Net Cash from/(used in) Financing Activities	-1,140.90	6,372.63
Net Increase/decrease in Cash & cash equivalents	-1,548.57	1,865.82
Cash and cash equivalents at the beginning of the year	1,964.60	98.78
Cash and cash equivalents at the end of the year	416.03	1,964.60

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

Hero FinCorp’s operating cash flow turned positive at ₹85.46 crore in FY2026 compared to a steep outflow of ₹3,913.66 crore in FY2025, indicating a major improvement in core cash generation. Despite a marginal pre-tax loss of ₹101.21 crore, strong adjustments from interest income, interest on loans, and working capital movements helped stabilize operations. The most notable driver was the improvement in working capital, particularly lower growth in loans (-₹2,905.77 crore vs -₹6,606.29 crore in FY2025) and better movement in financial liabilities. However, high impairment on financial instruments (₹2,521.86 crore) and fair value losses continued to weigh on profitability, suggesting underlying asset quality and valuation volatility remain concerns.

Cash Flow from Investing Activities

The company recorded a higher net outflow of ₹493.13 crore in FY2026 compared to ₹593.15 crore in FY2025, indicating relatively stable but consistently negative investing cash flows. The primary driver was large-scale investment activity, with purchases (₹17,971.77 crore) and sales (₹17,471.24 crore) reflecting an active treasury and liquidity management approach rather than long-term asset creation. Capital expenditure on PPE and intangibles remained modest and stable. Interest income from investments provided partial offset, but overall investing cash flows suggest the company is heavily engaged in short-term investment churn typical of a financial services business.

Cash Flow from Financing Activities

Financing cash flows turned sharply negative at ₹1,140.90 crore in FY2026 compared to a strong inflow of ₹6,372.63 crore in FY2025, indicating a significant shift in funding dynamics. While the company raised substantial borrowings and debt securities, repayments were even higher, reflecting deleveraging or refinancing pressure. Equity inflows were relatively small and stable, while dividend payouts remained modest. Lease payments and subordinated liability repayments further added to outflows. Overall, FY2026 shows a tightening liquidity stance with reduced net reliance on external financing compared to the previous year.

Net Increase/Decrease in Cash & Cash Equivalents

Hero FinCorp reported a net cash outflow of ₹1,548.57 crore in FY2026, reversing the previous year’s inflow of ₹1,865.82 crore. This decline is primarily driven by weaker financing inflows and continued investment activity, despite a recovery in operating cash flows. The shift indicates pressure on liquidity management, though not necessarily a structural issue given the nature of financial services balance sheet cycles.

Cash and Cash Equivalents at the End of the Year

Cash and cash equivalents declined sharply from ₹1,964.60 crore in FY2025 to ₹416.03 crore in FY2026, reflecting the net cash outflow during the year. While the closing balance remains adequate for operational needs, the significant reduction highlights increased reliance on efficient cash recycling through lending, borrowing, and investment activities. The drop also underscores the importance of maintaining stable financing channels going forward.