Shalibhadra Finance net profit rises 21.75% in FY26; recommends ₹0.50 dividend
- Net profit after tax rose 21.75% YoY to ₹194.8 crore in FY26
- Total income increased 12.63% to ₹411.0 crore, driven by portfolio growth
- Asset under management reached ₹2,152.6 crore with 1.13 lakh live customers
- Final dividend recommended at ₹0.50 per share, up from ₹0.40 previously
- Capital adequacy ratio maintained at 78.28%, well above regulatory norms
*this image is generated using AI for illustrative purposes only.
Shalibhadra Finance reported a 21.75% year-on-year increase in net profit after tax (PAT) to ₹194.8 crore for FY26, driven by robust growth in its asset financing portfolio and improved operational efficiency. Total income rose 12.63% to ₹411.0 crore, reflecting strong demand for two-wheeler loans in rural and semi-urban markets.
The company’s Board of Directors approved the financial results on September 2, 2026, and recommended a final dividend of ₹0.50 per equity share, amounting to ₹1.54 crore across 3.09 crore shares. This marks an increase from the previous year’s dividend of ₹0.40 per share.
Financial Performance
The NBFC’s profit before interest, depreciation, and tax (PBIT) grew 18.78% to ₹308.7 crore, while profit before tax (PBT) expanded 24.16% to ₹255.9 crore. Operating expenses were managed effectively, with total expenses declining slightly despite revenue growth.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Total Income | ₹411.0 crore | ₹364.9 crore | +12.63% |
| Profit Before Tax | ₹255.9 crore | ₹206.1 crore | +24.16% |
| Net Profit After Tax | ₹194.8 crore | ₹160.0 crore | +21.75% |
| Gross Interest Spread | 9.90% | — | — |
Portfolio and Balance Sheet Strength
The asset under management (AUM) reached ₹2,152.6 crore, up from ₹1,756.3 crore in FY25. The company maintained a high capital adequacy ratio of 78.28%, significantly above the regulatory requirement of 15%. Return on average net worth stood at 11.94%.
Total assets grew to ₹2,322.3 crore, with net worth increasing to ₹1,719.8 crore. The number of live customers rose 4.14% to 1.13 lakh, supported by a branch network of 62 outlets across Gujarat, Maharashtra, Madhya Pradesh, and Rajasthan.
Strategic Outlook and Corporate Actions
Management highlighted encouraging prospects due to increased sales of new two-wheelers and the withdrawal of larger banks and NBFCs from the rural two-wheeler financing segment. The company plans to expand into Goa and Karnataka and aims to reach a loan portfolio of ₹500 crore by March 2029.
The Board also approved the appointment of M/s. JSD & Associates as Secretarial Auditor for five years and scheduled the 35th Annual General Meeting for September 30, 2026. The record date for dividend eligibility is September 23, 2026.
What the Numbers Show
The divergence between the 12.63% growth in total income and the 24.16% growth in PBT indicates significant improvement in operating margins. This expansion was supported by a decline in provisions and write-offs from ₹26.1 crore in FY25 to ₹6.8 crore in FY26, suggesting better asset quality control alongside volume growth.
Historical Stock Returns for Shalibhadra Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.50% | -7.01% | +6.33% | -9.18% | -9.18% | -9.18% |
How might Shalibhadra Finance's expansion into Goa and Karnataka impact its operational costs and customer acquisition rates in these new markets?
What specific strategies is the company employing to maintain its low provision and write-off levels as it scales its loan portfolio to ₹500 crore by 2029?
Could the withdrawal of larger banks from rural two-wheeler financing lead to increased competition among remaining NBFCs, potentially compressing the current 9.90% gross interest spread?
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