Shalibhadra Finance Limited has reported a 25% year-on-year growth in assets under management (AUM) to ₹220 crore for FY26, up from ₹176 crore in FY25. The company’s net profit after tax (PAT) increased 21.67% to ₹19.48 crore, driven by a robust return on investment (ROI) of 8.65% and a return on equity (ROE) of 11.33%. Management disclosed these figures during the Q4 and FY26 earnings conference call held on June 1, 2026.

Financial Performance and Asset Quality

The company maintained a nearly 100% secured book with a gross non-performing asset (GNPA) ratio of 2.94%. Its capital to risk-weighted assets ratio (CRAR) stood strong at 78.28%, providing substantial headroom for scaling without equity dilution. The net worth of the company is reported at ₹172 crore.

Strategic Growth Drivers

Shalibhadra Finance is executing a 'Shalibhadra 2.0' strategy anchored on three pillars: capital strength, technology, and branch expansion. The company aims to reach an AUM of ₹500 crore by FY29 and ₹1,000 crore in the near future without further equity dilution. To achieve this, it is expanding its product portfolio beyond vehicle finance to include micro-loans against property (LAP), home loans, and personal loans.

Operational Metrics and Guidance

Management provided specific guidance on portfolio mix and efficiency. As the company scales, the return on assets (ROA) is expected to moderate from the current 8.65% to around 7% within the next two to three years due to the inclusion of higher-ticket segments like LAP and home loans. The cost of borrowing is projected to decrease as the share of nationalized bank funding rises from the current 40% to a target of 60% by FY29.

Expansion Plans

The company currently operates 61 branches and targets 100 branches by FY29, with a specific goal of reaching 70 branches by the current calendar year end. The capex per branch is approximately ₹20 lakh, with branches typically breaking even at an AUM of ₹50 lakh within 1 to 1.5 years. New branches are being deployed in regions such as Saurashtra in Gujarat, Bhopal in Madhya Pradesh, and Nagpur in Maharashtra, alongside selective entry into Karnataka and Goa.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE861D01011/d4e2621e-16f5-40b0-930c-7cffa8855c3f.pdf

Shalibhadra Finance Limited reported a 21.67% increase in net profit for the financial year ended March 31, 2026, reaching ₹19.48 crore compared to ₹16.01 crore in the previous year. The retail-focused NBFC posted a 24.81% year-on-year growth in Assets Under Management (AUM) to ₹219.66 crore. Net Interest Income (NII) rose 15.03% to ₹35.95 crore, while the Net Interest Margin stood at 18.17%. The company’s Gross NPA and Net NPA were 2.94% and 1.17%, respectively.

The Board of Directors has recommended a dividend of 5%, equivalent to ₹0.50 per equity share of face value ₹10 each, for FY26. This dividend will be payable on the increased share capital resulting from the Bonus Issue in June 2025, subject to shareholder approval at the ensuing Annual General Meeting. The Board approved the audited standalone financial results at its meeting held on May 28, 2026. Vatsal Doshi, Managing Director, confirmed the outcomes in a filing to the exchanges.

Vora & Associates Chartered Accountants, the statutory auditors, issued an unmodified opinion on the audited standalone financial results. The report confirms compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that it has issued listed debentures of ₹1,950 lakh on April 15, 2026, carrying an interest rate of 12% per annum.

Financial Performance for FY26

The balance sheet as of March 31, 2026, shows total assets of ₹23,223 lakh, compared to ₹19,535 lakh in the previous year. Equity share capital increased to ₹3,089 lakh from ₹772 lakh, reflecting the bonus issue. Borrowings, excluding debt securities, rose to ₹5,609 lakh from ₹3,746 lakh. The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS).

Strategic Growth Initiatives

Shalibhadra Finance is targeting an AUM of ₹500 crore by FY29, driven by branch expansion and new secured lending products. The company plans to expand its branch network to 70 by CY2026 and 100 over the next three years, entering new states such as Karnataka and Goa. It is venturing into Micro LAP of under ₹5 lakh and introducing Home Loans, Property Loans, Salaried Personal Loans, and Tractor Loans. With a net worth of ₹172 crore, the company aims to achieve the AUM target without raising further equity, relying instead on debt through Term Loans and NCDs.

The company emphasized its liquidity position as of March 31, 2026, with cumulative inflows at ₹232.22 crore against cumulative outflows of ₹60.25 crore. The liquidity gap remained positive across all maturity buckets, with the 3–5 year bucket reporting the highest cumulative positive gap of ₹172.47 crore and a coverage ratio of 311.21%. The 0–1 month bucket recorded a positive gap of ₹7.61 crore with a coverage of 280.81%.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE861D01011/c5b656cce9634582.pdf