Haryana Financial Corporation Reports Loss, Moves Toward Delisting Amid Winding Up Process

Haryana Financial Corporation (HFC) has reported a net loss of Rs 0.33 crore for the quarter ended September 30, 2025, according to its latest financial results. This loss represents a slight increase from the Rs 0.28 crore loss recorded in the previous quarter. The corporation's financial situation continues to be challenging, with several significant developments impacting its future.

Financial Performance

HFC's total income for the quarter decreased to Rs 0.54 crore from Rs 0.64 crore in the prior quarter. The financial results, approved by the Board of Directors on November 13, 2025, reveal a concerning trend in the corporation's operations.

Particulars (in Rs. crore)	Q2 2025	Q1 2025
Total Income	0.54	0.64
Net Loss	0.33	0.28
Total Expenditure	0.82	0.89

Winding Up and Delisting Process

In a significant move, HFC has recommended to the State Government for winding up/liquidation under section 45 of the State Financial Corporations (SFCs) Act, 1951. This recommendation underscores the severe financial challenges faced by the corporation.

Furthermore, the State Government has decided to delist HFC's shares from the Bombay Stock Exchange. This process is currently underway, marking a potential end to the corporation's status as a publicly traded entity.

Asset Quality and Shareholding

The corporation maintains a Gross Non-Performing Asset (NPA) ratio of 100% and a Net NPA ratio of 0%, indicating severe asset quality issues. The shareholding pattern shows that the promoter and promoter group hold 99.36% of shares, while public shareholding stands at a mere 0.64%.

Auditor's Concerns

The auditors have noted a material uncertainty regarding HFC's ability to continue as a going concern. This assessment is based on the ongoing winding up recommendation and the delisting process, which cast significant doubt on the corporation's future operations.

Outlook

The financial results and recent developments paint a challenging picture for Haryana Financial Corporation. The winding up recommendation, coupled with the delisting process and poor financial performance, suggests that the corporation may be facing significant operational challenges.

Stakeholders, including the small percentage of public shareholders, will need to closely monitor further announcements regarding the winding up process and potential implications for their investments.

Haryana Financial Corporation (HFC) has made significant changes to its Board of Directors and released its financial results for the first quarter. The company's Board meeting, held on August 13, saw the appointment of three new directors and the approval of the unaudited financial results for the quarter ended June 30.

Board Appointments

The corporation announced the following appointments to its Board of Directors:

Shri Amit Kumar Agrawal, IAS, Commissioner & Secretary of the Industries & Commerce Department, has been appointed as a director representing the State Government, in accordance with the State Financial Corporations Act, 1951.
Shri Mohammed Shayin, IAS, Commissioner & Secretary of the Finance Department, has been appointed as an Independent Director, replacing Smt. Radhika Singh.
Shri Sonam Chhewang, Senior Divisional Manager at LIC Chandigarh, has been appointed as LIC of India's nominee director, as per the State Financial Corporations Act, 1951.

Financial Performance

HFC's financial results for Q1 reveal the following key figures:

Particulars	Q1 (₹ crore)	Q4 (₹ crore)	Q1 (₹ crore)
Total Income	0.61	0.69	0.49
Total Expenditure	0.89	1.10	0.93
Net Profit/(Loss)	(0.28)	0.15	1.81

The corporation reported a total income of ₹0.61 crore for the quarter, compared to ₹0.69 crore in the previous quarter and ₹0.49 crore in the same quarter last year. However, the total expenditure of ₹0.89 crore resulted in a net loss of ₹0.28 crore for Q1.

Other Notable Points

The corporation's Gross Non-Performing Assets (NPAs) stand at 100.00%, while the Net NPA to net loans ratio is 0.00%.
The paid-up equity share capital remains unchanged at ₹207.66 crore.
The Basic and Diluted Earnings Per Share (EPS) for the quarter is ₹(0.01).

It's worth noting that HFC has recommended to the State Government for its winding up/liquidation under Section 45 of the State Financial Corporations Act, 1951. Additionally, the State Government has decided to delist the corporation's shares from the BSE Ltd., and this process is currently underway.

The Board meeting, which commenced at 11:00 AM and concluded at 12:40 PM on August 13, approved these financial results and the appointment of the new directors. The corporation continues to face challenges, as indicated by the ongoing losses and the recommendation for winding up, which may cast significant doubt on its ability to continue as a going concern.