Hero FinCorp Limited, one of India’s leading non-banking financial companies (NBFCs), has officially announced its audited financial results for the year ended March 31, 2025. The results, approved by the Board of Directors on April 29, 2025, highlight the company’s continued expansion in its core lending business, with a robust increase in revenue rising from ₹8,290.90 crore in FY24 to ₹9,832.73 crore in FY25.
While Hero FinCorp achieved impressive topline growth, profitability came under significant pressure. Net profit (PAT) fell sharply by around 82.74%, dropping from ₹637.05 crore in FY24 to just ₹109.95 crore in FY25. This decline reflected the challenging environment and rising asset quality concerns. Despite these headwinds, the Board has recommended a final dividend of ₹1.10 per equity share, signalling confidence in the company’s long-term prospects.
Let’s dive deep into Hero FinCorp’s FY25 financial performance, analyse the key metrics, and check the share price journey so far.
Comparing Q4 Performance: FY25 vs FY24
Hero FinCorp announced its Q4 FY25 results, highlighting a 10% year-on-year increase in revenue to ₹2,502.20 crore compared to ₹2,273.27 crore in Q4 FY24. Despite this revenue growth, net profit for the quarter declined sharply to ₹40.81 crore from ₹134.79 crore in the same period last year.
The contrasting trends show the company’s strong business momentum but also rising challenges in maintaining profitability and asset quality as the lending environment becomes more demanding.
FY24 vs FY25: A Comprehensive Financial Performance
Consolidated P&L Figures | FY24 | FY25 |
Revenue from Operations | 8,290.90 | 9,832.73 |
Employee Benefit Expenses | 692.71 | 729.84 |
Other Expenses | 1,482.23 | 1,806.83 |
Operating EBITDA | 3,772.38 | 3,676.44 |
Operating EBITDA Margin % | 40.36% | 48.64% |
Other Income | 68.82 | 70.60 |
Depreciation and Amortisation | 65.96 | 95.97 |
Profit Before Tax(PBT) | 960.55 | 256.09 |
Tax | 323.50 | 146.14 |
Profit After Tax(PAT) | 637.05 | 109.95 |
EPS | 50.04 | 8.63 |
Revenue Growth
Hero FinCorp’s revenue from operations rose 18.6% to ₹9,832.73 crore in FY25 from ₹8,290.90 crore in FY24. Higher disbursements and a diversified lending portfolio fueled this growth.
EBITDA
EBITDA decreased to ₹3676.44 crore from ₹3772.38 crore, signalling that while revenue growth was strong, rising expenses, especially finance costs and provisions for loan losses, resulted in inadequate growth.
PAT
Profit after tax dropped sharply by 82.74%, from ₹637.05 crore to ₹109.95 crore. This was primarily due to:
A significant increase in provisions for bad loans (impairment on financial instruments rose from Rs 1,722.39 crore to Rs 2,884.09 crore.
Higher finance costs (from Rs 3097.36 crore to Rs 3,827.71 crore).
This underscores the impact of deteriorating asset quality and a tougher funding environment.
EPS
Earnings per share fell in line with PAT, from ₹50.04 to ₹8.63, reflecting the steep decline in net profit and directly affecting shareholder return.
NPA
Gross NPA increased from 4.025% to 5.05%. This rise in non-performing assets shows that more loans are turning bad and signals increased credit risk in the portfolio
For such loans turning bad, the company is making higher provisions, which has impacted the profitability for this year.
Cash Flow Statement Analysis: FY25 vs FY24
Hero FinCorp showed a significant improvement in cash flow management in FY25. Net cash outflow from operating activities narrowed sharply from Rs 9,238.83 Cr in FY24 to Rs 3,913.66 Cr in FY25.
Despite higher investment activity, financing inflows remained robust at ₹6,372.63 Cr.
The company swung from a negative net cash flow of ₹651.36 Cr in FY24 to a positive ₹1,865.82 Cr in FY25. This indicates stronger liquidity in the latest fiscal year.
Cash Flow | (In Rs Crores) | |
FY 24 | FY 25 | |
Net Cash Outflow from Operating Activities | (9,238.83) | (3,913.66) |
Net Cash Outflow from Investing Activities | (129.79) | (593.15) |
Net Cash Inflow from Financing Activities | 8,717.26 | 6,372.63 |
Net Cash Flow | (651.36) | 1,865.82 |
Hero FinCorp Share Price Analysis
Hero Fincorp Unlisted Share Price was trading at Rs 1,999 on May 24. It reduced to around Rs 1,300 per share on May 25, but jumped back by the end of May after the company’s IPO announcement. Currently, the Hero Fincorp Share price is around Rs 1800 per share.
Should You Buy Hero Fincorp Unlisted Shares?
Even with the dip in operating EBITDA and operating profit, Hero Fincorp has still increased its revenue and profit margin. Moreover, after the IPO announcement, we saw a significant jump in share price, increasing the demand for the company’s unlisted shares near its highly anticipated IPO.
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Frequently Asked Questions About Hero FinCorp Pre-IPO And Unlisted Shares
Q1 - Is investing in Hero FinCorp Pre-IPO a good decision?
Ans - Investing in the Hero FinCorp Pre-IPO shares is the best investment decision. However, before investing in the Hero FinCorp’s IPO, consult a genuine financial advisor like Stockify.
Q2 - What is the benefit of investing in Hero FinCorp unlisted shares?
Ans - Investing in the Hero FinCorp unlisted shares diversifies the risk, offers negotiable share prices, and ensures high returns on the investment.
Q3 - What was the turnover of Hero FinCorp Limited in FY22?
Ans - The turnover of Hero FinCorp Limited in FY22 was 4797.66 crore.
Q4 - On what factors the future of Hero FinCorp unlisted shares depends?
Ans - The future of Hero FinCorp unlisted shares depends on numerous factors, including market trends, the company’s performance and revenue, market conditions, and regulatory policy changes.
Q5 - Which is the best platform for stock trading and guidance?
Ans - In the current financial market, Stockify remains one of the leading platforms for stock trading and advice. A team of unlisted share professionals is always available to guide you. Connect with us!
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