Haryana Financial Corporation Ltd Approves Audited FY26 Results, Recommends Winding Up

Haryana Financial Corporation Ltd has announced its audited financial results for the fiscal year ended March 31, 2026. The company reported a net profit of ₹7.73 crore, marking a significant turnaround from a loss of ₹0.01 crore in the previous fiscal year (FY25). Total income also saw a substantial increase, rising to ₹12.32 crore in FY26 from ₹2.86 crore in FY25.

Reader Takeaway: Profit turnaround achieved; liquidation and delisting remain key concerns.

What just happened

Haryana Financial Corporation Ltd (HFC) has approved its audited financial results for the year ending March 31, 2026. The company achieved a net profit of ₹7.73 crore, a notable shift from a net loss of ₹0.01 crore in FY25. This profit was accompanied by a significant rise in total income to ₹12.32 crore in FY26 from ₹2.86 crore in FY25.

Why this matters

Despite the return to profitability, the company is facing serious strategic developments. HFC has recommended its own winding up and liquidation under the SFCs Act, 1951, to the State Government. Furthermore, the State Government has decided to delist HFC's shares from the BSE. These events raise significant questions about the company's ability to continue as a going concern, as highlighted by the statutory auditor.

The backstory

HFC is a state-owned financial institution. The decision to recommend winding up and initiate delisting suggests a strategic shift or a planned closure of operations, likely influenced by regulatory changes or the company's financial trajectory over time.

What changes now

The company is actively progressing towards liquidation and delisting. A merchant banker has been appointed for the delisting process, and a valuation report is under consideration. Shareholders will be closely monitoring the progress of these processes, as they will determine the future of their investment and potential exit.

Risks to watch

Key risks include the uncertain future business existence due to the liquidation recommendation, potential impacts on share liquidity and exit price due to delisting, and ongoing litigation from ex-employees and loanees with indeterminate claims. An accounting discrepancy of ₹2.21 crore between HFC's books and State Government accounts also requires attention.

Peer comparison

As a state financial corporation undergoing liquidation and delisting, direct peer comparison on operational metrics is not applicable. However, other financial institutions operating in similar regulatory environments might provide context on financial health, though HFC's specific situation is unique due to its imminent closure.

Context metrics (time-bound)

• Net Profit/Loss: ₹7.73 crore in FY26 vs. ₹(0.01) crore in FY25.
• Total Income: ₹12.32 crore in FY26 vs. ₹2.86 crore in FY25.
• Basic/Diluted EPS: ₹0.37 in FY26 vs. ₹(0.00) in FY25.

What to track next

Investors should track the official communications regarding the delisting price, the progress of the winding-up committee, and any further disclosures on the resolution of contingent liabilities. The resolution of the accounting discrepancy will also be important.