Shalibhadra Finance Limited achieved a significant milestone in Q3FY26 by crossing the ₹200 crore Assets Under Management (AUM) threshold, closing the quarter at ₹212.49 crores. The RBI-registered NBFC, which specializes in small-ticket vehicle financing products with high yields across rural, semi-urban, and under-banked markets, demonstrated strong execution-led growth supported by improving ground-level demand trends.

Financial Performance and Growth Metrics

The company's AUM has shown consistent growth trajectory, expanding from ₹155 crores to ₹212.49 crores. This achievement reflects the strength of the company's expanding distribution network, disciplined underwriting framework, and sustained demand across core markets. Management remains confident of achieving the ₹220 crore AUM target by the end of FY26.

Operational Expansion and Infrastructure

During Q3FY26, Shalibhadra Finance expanded its branch network to 58 branches and strengthened its workforce to 190 employees, enhancing sourcing capabilities, service reach, and collection oversight. The company operates across 4 states covering 40+ districts, serving over 107,875 customers without following any franchise or Direct Selling Agent (DSA) model.

The company's operational footprint spans across:

• Gujarat: Multiple locations including Dabhoi, Dahod, Halol, Himmatnagar, Vyara, Mehsana, Vapi, Junagadh, and others
• Maharashtra: Extensive presence including Mumbai, Nashik, Kolhapur, Pune, Ahmednagar, and various other cities
• Madhya Pradesh: Operations in Dewas, Harda, Khandva, Ujjain, Ratlam, and other centers
• Rajasthan: Presence in Dungarpur

Product Portfolio and Market Focus

The company maintains a well-diversified portfolio led by new and used two-wheelers, ensuring balanced growth and risk distribution. The product range includes:

Asset Quality and Risk Management

Asset quality remained stable during the quarter, with GNPA at 3.01%, reflecting prudent credit selection and consistent monitoring despite accelerated portfolio growth. Collection efficiency continues to remain strong at above 99%, underscoring the resilience of the borrower base and disciplined recovery framework.

The company maintains almost 100% of loans backed by secured credit exposure, contributing to one of the lowest NPAs in the industry. While festive-led sales focus resulted in a marginal dip in collection efficiency, overall efficiency metrics demonstrate the strength of the company's risk-adjusted profitability profile.

Market Drivers and Business Environment

The reduction in GST on two-wheelers materially improved affordability, resulting in stronger vehicle sales and a notable pickup in disbursements during the quarter. This policy change supported the growth momentum witnessed in Q3FY26, which was execution-led and backed by improving ground-level demand trends.

Capital Position and Funding

AUM growth during the quarter has been partly funded through incremental borrowings, leading to a moderation in capital adequacy. However, the company's capital position remains comfortable and provides adequate headroom for calibrated expansion. The company is backed by leading banks and NBFCs, ensuring reliable capital flow for sustained operations.

Outlook and Strategic Direction

As the company enters Q4FY26 with strengthened infrastructure and strong pipeline visibility, management expects business momentum to remain healthy while continuing to balance growth with asset quality and capital prudence. The expansion positions the company well to sustain growth while maintaining operational control across its target markets in rural and semi-urban India.

Shalibhadra Finance Limited announced the opening of its new branch in Narmadapuram, Madhya Pradesh on January 7, 2026. This strategic expansion strengthens the company's geographic presence in the state and enhances customer accessibility in the region.

Branch Network Expansion

The Narmadapuram branch represents a significant milestone in the company's growth trajectory. Key details of this expansion include:

Strategic Positioning and Market Focus

The new branch will initially concentrate on two-wheeler financing in the district, aligning with Shalibhadra Finance Limited's strategy of promoting economic participation in rural India. The location offers strategic advantages as it sits along the Narmada river valley and serves as a key connector between surrounding rural blocks, small towns, and the Itarsi junction.

Managing Director Vatsal M. Doshi commented on the expansion: "Situated along the Narmada river valley, Narmadapuram serves as a key connector between surrounding rural blocks, small towns and the Itarsi junction, one of India's busiest railway hubs. Everyday mobility for workers, traders and small business owners in and around Narmadapuram is heavily dependent on two-wheelers, which offer the most practical and affordable mode of transport across dispersed villages and market centres."

Growth Strategy and Market Approach

The Narmadapuram branch opening represents an important step in the company's planned expansion to reach 100 branches by the end of FY27. The branch complements the company's existing range of secured and purpose-based loan products for various customer segments:

• Self-employed individuals
• Small businesses
• Salaried customers

Doshi emphasized the company's commitment to sustainable growth: "By strengthening its presence in such high-potential markets, the Company aims to improve customer access, build stronger local relationships and meet the increasing demand for its loan products. These new branches will help Shalibhadra grow its operations in a careful and sustainable manner while continuing to maintain strong credit standards and asset quality."

Company Profile

Shalibhadra Finance Limited operates as an NBFC focusing on rural and semi-urban areas across Gujarat, Maharashtra, and Madhya Pradesh. The company maintains a network of over 60 branches offering small ticket asset financing and customized retail products including financing for new and used two-wheelers, auto rickshaws, cars, and consumer durables.