VMPL
Mumbai (Maharashtra) [India], May 30: Shalibhadra Finance Limited (SFL), a retail-focused non-banking financial company (NBFC) catering to rural and semi-urban markets, has reported a strong financial performance for FY26, underpinned by steady growth in its lending portfolio, improving profitability, and an ambitious expansion strategy aimed at accelerating its next phase of growth.
The company reported a 21.67% year-on-year increase in Profit After Tax (PAT) to ₹19.48 crore, reflecting continued momentum in its core lending operations. Assets Under Management (AUM) grew 24.81% year-on-year to ₹219.66 crore, while Net Interest Income (NII) rose 15.03% to ₹35.95 crore, highlighting sustained demand across its retail lending segments.
The company reported Gross Non-Performing Assets (GNPA) of 2.94% and Net Non-Performing Assets (NNPA) of 1.17%, reflecting its asset quality position alongside continued business growth. The company maintained that its asset quality remains under control, supported by disciplined underwriting practices and a secured lending model developed over more than three decades of retail financing experience.
The company is now entering what it describes as a new growth cycle, supported by a net worth of ₹172 crore and a strategy focused on expanding its secured lending portfolio. Management believes the existing capital base provides significant headroom for growth, with future expansion expected to be funded through debt instruments such as term loans and non-convertible debentures (NCDs).
A key pillar of the company's future roadmap is its entry into the Micro Loan Against Property (Micro LAP) segment for loans below ₹5 lakh. Management sees the segment as a high-growth opportunity with relatively limited competition from larger NBFCs. In addition, Shalibhadra Finance plans to diversify into home loans, property loans, salaried personal loans, and tractor financing to broaden its revenue streams and strengthen its market presence.
The company is also investing in technology and automation to improve operational efficiency, strengthen risk management, and support higher volumes of smaller-ticket loans. AI-driven initiatives are expected to further enhance customer acquisition and productivity.
On the distribution front, Shalibhadra Finance currently operates through 61 branches and plans to expand to 70 branches by calendar year 2026 and 100 branches over the next three years. The company is entering Karnataka and Goa while evaluating further expansion into Rajasthan and Madhya Pradesh.
Commenting on the outlook, Managing Director Vatsal M. Doshi said the company is targeting an AUM of ₹500 crore by FY29, driven by branch expansion, deeper market penetration, new product launches, and greater productivity across its physical and digital infrastructure. As the company scales its footprint and lending portfolio, it aims to balance growth with strong governance, healthy asset quality, and long-term value creation.
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