Overview

Hinduja Leyland Finance Limited is the largest unlisted NBFC specializing in customized commercial vehicle financing solutions alongside construction, equipment financing and loan against property (LAP). Hinduja is jointly promoted by Hinduja Group and Ashok Leyland, the subsidiary was incorporated in November 2008 but started lending operations in FY2011 after receiving NBFC license from RBI in March 2010. HLFL is a 17 years old entity that tried to go public twice but got delayed twice, now HLF is merging by absorption with NDL Ventures following its digital media and communication business – emerging as full-fledged NBFC. The reverse merger was a strategic move to provide HLF access to public capital. The merger was approved by BSE and SEBI and received no objection letter from CCI. In the transaction, every shareholder with 25 shares of HLFL will receive 10 shares of NDL Ventures.

What does HLF do? 

Core Strategic Pillars of Operational Model

• Parent Backing and Synergy: HLF is backed by Ashok Leyland and leverages its close relationship. A significant portion of commercial vehicle loan portfolio directly funds Ashok Leyland Vehicles.

• Hub-and-Spoke Model: HLF operates on Hub-and-Spoke network infrastructure, where it has an extensive network of 1750+ locations across India. Local branches act as spokes which acts as the direct touchpoints with customers while hubs manage credit underwriting, risk assessment and treasury. 

• Targeting the underbanked segment: The business model targets first time buyers and small road transport operators who often lack formal income proof or extensive CIBIL.

• Diversified loan portfolio: In order to minimize cyclical risk associated with vehicle industry, the company also diversified in loan against property, two-wheeler and portfolio buyouts.  

How HLF Makes Money? – Revenue Model

Hinduja Leyland Finance has diversified revenue streams making it protected against cyclical risks:

Stream 1 – Vehicle Finance

HLF provides the financing solutions for following vehicles:

• MHCV - Medium and Heavy Commercial Vehicles

• LCV – Light Commercial Vehicles

• SCV – Small Commercial Vehicles

• Buses

• Passenger Vehicles 

• Two wheelers and three wheelers and

• Tractors

HLF enjoys exclusive partnership with its parent ALL for heavy vehicle financing with special benefits. ALL financing constitutes approx. 23% of the overall portfolio of HLF. But the company is moving strategically towards reducing this captive concentration risk. It also exposes the company to macroeconomic risks and cyclical drawdowns. In addition, it is focusing on financing high margin yielding non-vehicle asset class. 

HLF finances both new and used vehicles. The primary (new) market portfolio constitutes 83% and Secondary market consists of around 17%. 

In addition to financing traditional vehicles, HLF also accelerating its EV financing portfolio that includes Electric buses, trucks, commercial vehicles, two-wheelers and three-wheelers. 

HLF’s total consolidated AUM has crossed INR 59,531 Cr. 

Stream 2 – Construction Equipment Finance

HLF also finances construction equipment such as excavators, cranes, backhoe loaders, and concrete mixers. Combined with Vehicle financing, it constitutes 52% of the consolidated portfolio. Instead of relying on one brand, HLF uses multi-brand strategy where it partners with:

• JCB

• ACE

• Tata Hitachi Construction Machinery

• Schewing Stetter

• Putzmeister Concrete Machines 

Stream 3 – Loan Against Property 

HLF gives loans against property (LAP) to residential and commercial property owners. Since the loan is backed by physical security, NBFCs are sometime lenient in financing. SME business owners, self-employed, home owners and fleet operators with property assets are targeted for this product. 

As per the latest data, LAP portfolio as a % of AUM roughly accounts for 28%. 

Stream 4 – Hinduja Housing Finance Limited (Subsidiary)

HHFL was incorporated on15 April 2015 as a wholly subsidiary of HLFL to bifurcate its housing finance division. 

In FY26 HHFL’s total AUM has touched INR 15,937 Cr vs INR 13820 Cr in FY25 – scaling at 15% YoY. The company is operational in 19 Indian states and union territories.

HHFL specifically targets customer who are:

• Self-employed informal borrowers

• Lack formal income proof 

• New to credit and borrowings

HHFL approx. accounts for 23-25% of the consolidated AUM of parent – HLFL. In FY26, it has contributed INR 387 Cr of PAT to HLFL. 

Stream 5 – Gro Digital Platform

This is digital marketplace connecting truck owners with load aggregators. It is a highly scaled B2B smart fleet management and logistics platform. The platform has advanced from pre-revenue stage to high growth and revenue generating phase. In FY25 Gro Digital has generated standalone revenue of INR 406 Cr. The platform has active relationship with over 750,000+ fleet owners. 

Competitive Landscape

Listed Peers

• Shriram Finance 

• Cholamandalam Investment & Finance 

• Mahindra Finance 

• L&T Finance 

Vehicle Finance Specialists

• Magma Fincorp – Later rebranded as Poonawala Fincorp after acquisition by Cyrus Poonawala Group. It focuses heavily on Retail and MSME loans offering personal loan, LAP, and medical equipment loan. 

• Muthoot Finance – provide loan facility against gold, the product is different from HLFL but competes for the same customers – rural and semi urban borrowers

Funding Rounds