Shalibhadra Finance Reports Strong Q2 FY26 Results with 37.68% YoY Profit Growth
Shalibhadra Finance demonstrated exceptional Q2 FY26 performance with significant year-on-year growth across all key metrics including 37.68% profit increase and 25.07% NII growth. The company's strong operational foundation with 57 branches, healthy asset quality, and strategic 2027 vision targeting ₹300 crores AUM positions it well for sustained growth in rural vehicle financing.
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Shalibhadra Finance Limited has released its comprehensive investor presentation for Q2 FY26, showcasing robust financial performance and strategic growth initiatives. The RBI-registered NBFC, specializing in small-ticket vehicle financing across rural and semi-urban markets, demonstrated strong operational momentum with significant year-on-year improvements.
Q2 FY26 Financial Highlights
The company's quarterly performance reflects sustained growth across key financial metrics:
| Metric: | Q2 FY26 | Q2 FY25 | YoY Growth |
|---|---|---|---|
| Total Income: | ₹9.49 crores | ₹8.23 crores | +15.31% |
| Net Interest Income: | ₹8.33 crores | ₹6.66 crores | +25.07% |
| Profit After Tax: | ₹4.75 crores | ₹3.45 crores | +37.68% |
| Assets Under Management: | ₹191.04 crores | ₹142.00 crores | +34.50% |
The company's net interest income growth of 25.07% year-on-year demonstrates the effectiveness of its rural lending model and disciplined yield management. The impressive 37.68% increase in profit after tax reflects improved operational efficiency and strong asset quality maintenance.
Operational Excellence and Market Position
Shalibhadra Finance operates through a network of 57 fully-owned branches across four states, serving over 107,875 customers. The company maintains a strong capital adequacy ratio of 78.70%, providing substantial headroom for future growth without equity dilution. With over 30 years of legacy in rural finance, the company has built deep local market understanding and customer relationships.
| Operational Metrics: | Current Status |
|---|---|
| Branch Network: | 57 branches |
| Geographical Presence: | 4 states, 40+ districts |
| Employee Strength: | 178 professionals |
| Customer Base: | 107,875+ customers |
| Capital Adequacy Ratio: | 78.70% |
Asset Quality and Portfolio Composition
The company's asset portfolio remains well-diversified with new two-wheelers comprising ₹135.53 crores and used two-wheelers contributing ₹52.74 crores to the total AUM. The GNPA stands at 3.07% with NNPA at 0.99%, reflecting disciplined credit assessment and effective collection practices. The provision coverage ratio of 68% provides adequate buffer for potential credit losses.
Strategic Growth Vision 2027
Shalibhadra Finance has outlined ambitious yet achievable growth targets for 2027, including expanding AUM to ₹300 crores and scaling the branch network to 100 locations. The company plans to diversify its product suite by introducing Micro LAP and Home Loans while strengthening its three-wheeler and four-wheeler portfolio. Geographic expansion into new states like Goa and Karnataka is also part of the strategic roadmap.
Management Commentary
Managing Director Vatsal M. Doshi emphasized the company's strong positioning in India's underpenetrated rural mobility financing segment. He highlighted the structural advantages gained from three decades of operations and the recent investments in technology, process standardization, and credit framework enhancement. The management expressed confidence in achieving the 2027 targets while maintaining asset quality and operational efficiency.
Historical Stock Returns for Shalibhadra Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +7.53% | +7.95% | +4.76% | -7.06% | -38.22% | +542.15% |
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