Shalibhadra Finance Ltd reported a net profit of ₹4.91 crore for the quarter ended June 30, 2026, rising 7% from ₹4.57 crore in the corresponding period of FY26. Total revenue from operations expanded by 17% year-on-year to ₹11.09 crore, driven primarily by an increase in income from retail finance.

The company’s board of directors approved the unaudited standalone financial results during its meeting held on August 12, 2026. The figures have been reviewed by Vora & Associates, the statutory auditors, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Retail finance income, the core revenue driver, increased to ₹10.86 lakh from ₹9.41 lakh in Q1FY26. Service charges contributed ₹10 lakh, up from ₹6 lakh previously, while bank fixed deposit interest income rose to ₹13 lakh from nil. Consequently, total revenue reached ₹11.09 lakh, compared to ₹9.47 lakh in the prior year quarter.

Expenses rose to ₹4.68 lakh from ₹3.55 lakh in Q1FY26. Finance costs increased significantly to ₹1.96 lakh from ₹99 lakh, reflecting higher borrowing costs or volume. Employee benefit expenses stood at ₹1.20 lakh, while administrative and other expenses were ₹1.48 lakh. Depreciation remained minimal at ₹4 lakh.

Profit before tax declined 9% quarter-on-quarter to ₹6.41 lakh from ₹7.04 lakh in Q4FY26, despite the year-on-year growth. Tax expense was recorded at ₹1.50 lakh. Basic and diluted earnings per share stood at ₹1.59, down from ₹1.66 in the previous quarter but up from ₹1.48 in Q1FY26.

What the Numbers Show

While top-line revenue grew robustly at 17% year-on-year, profit before tax contracted by 9% compared to the immediately preceding quarter. This divergence suggests that cost inflation, particularly in finance costs which more than doubled year-on-year, is beginning to pressure margins relative to the peak performance seen in Q4FY26. The operating model remains heavily concentrated in retail finance, which accounts for over 97% of total revenue, indicating limited diversification in income streams.

The company reported other comprehensive income of ₹56 lakh, reversing a loss of ₹98 lakh in the prior quarter. Total comprehensive income for the period was ₹5.47 lakh. Paid-up equity share capital remained unchanged at ₹30.89 lakh.

Shalibhadra Finance Limited reported a net profit of ₹5.47 crore for the quarter ended June 30, 2026, up from ₹4.58 crore in the corresponding period of the previous fiscal year. Revenue from operations expanded 17% year-on-year to ₹11.09 crore, driven primarily by an increase in income from retail finance.

The Mumbai-based non-banking financial company (NBFC) saw its retail finance income rise to ₹10.86 crore in Q1FY26, compared to ₹9.41 crore a year ago. This growth offset a slight dip in service charges, which fell to ₹10 lakh from ₹14 lakh in the prior quarter. Total comprehensive income for the period stood at ₹5.47 crore, reflecting gains on fair value of equity instruments.

Financial Performance

The company’s profitability metrics showed mixed trends across quarters. While net profit after tax improved year-on-year, it declined slightly on a quarter-on-quarter basis from ₹5.13 crore in Q4FY26. Earnings per share (EPS) were recorded at ₹1.59, down from ₹1.66 in the preceding quarter but higher than the ₹1.48 reported in Q1FY25.

Expenses increased to ₹4.68 crore in the quarter, up from ₹3.94 crore in Q4FY26 and ₹3.55 crore in Q1FY25. Finance costs rose to ₹1.96 crore from ₹1.69 crore in the previous quarter, while employee benefit expenses remained stable at ₹1.20 crore. Administrative and other expenses surged to ₹1.48 crore from ₹1.01 crore in the prior quarter, contributing to the compression in operating margins.

What the Numbers Show

A notable divergence exists between revenue growth and margin performance. While revenue grew 17% year-on-year, the operating margin contracted to 75.47% from 79.51% in the previous quarter. This decline coincides with a sharp rise in administrative expenses, which jumped nearly 47% quarter-on-quarter. Despite this pressure, the net profit margin expanded to 49.32% from 48.36% in the same quarter last year, indicating that cost increases were partially absorbed by higher top-line growth.

Balance Sheet and Capital Utilization

Shalibhadra Finance disclosed that it had fully utilized the ₹19.50 crore raised through a private placement of non-convertible debentures (NCDs) on April 10, 2026. There were no deviations in the use of issue proceeds as per SEBI regulations.

The company’s debt-equity ratio stood at 0.34 as on June 30, 2026, up from 0.33 in the previous quarter and 0.22 a year ago. Net worth increased to ₹177.45 crore from ₹171.98 crore at the end of FY26. The interest service coverage ratio declined to 4.27 from 5.17 in the prior quarter, while the debt service coverage ratio fell to 0.64 from 0.69.

The unaudited financial results were reviewed by M/s Vora & Associates, Chartered Accountants, and approved by the Board of Directors in a meeting held on August 12, 2026.