Shalibhadra Finance Limited announced the launch of its Used Commercial Vehicle (UCV) Financing division on September 7, 2026. The move marks the NBFC’s entry into the rural logistics sector, expanding its existing loan portfolio.

Shalibhadra Finance Limited , a retail-focused NBFC serving unbanked and underserved regions, introduced two core services under this new product line. The division will offer financing for the purchase of pre-owned transport vehicles to help rural entrepreneurs. It will also provide refinancing of existing used commercial vehicles, offering working capital to owners against their current assets.

Strategic Expansion

The company stated that its existing infrastructure, local market expertise, and strong collection network built over years will support the efficient scaling of this new segment. This expansion aligns with the company’s long-term risk management policy by diversifying its Asset Under Management (AUM) across different product categories.

Shalibhadra Finance currently manages an AUM of ₹220+ crores and serves an active customer base of more than 1 lakh individuals. The firm’s existing portfolio includes two-wheeler loans, car loans, property loans, and personal loans, primarily targeting rural and semi-urban geographies.

What the Numbers Show

The launch of the UCV financing division represents a strategic pivot toward asset-backed lending in a high-yield segment. With an existing AUM of ₹220+ crores spread across personal and consumer loans, the addition of commercial vehicle financing introduces a distinct risk profile tied to business utility vehicles rather than individual consumption. This diversification aims to balance the portfolio while leveraging the company’s established presence in underserved markets.

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.

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.