Shalibhadra Finance Targets Rs 500 Crore AUM as FY26 Profits Surge by 22%

Shalibhadra Finance Limited is poised for significant growth following the release of strong financial results for FY26. The company reported a 21.67% year-on-year increase in Profit After Tax (PAT), reaching ₹19.48 crore, alongside a notable 24.81% increase in Assets Under Management (AUM) to ₹219.66 crore. Furthermore, a 15.03% growth in Net Interest Income (NII) to ₹35.95 crore underscores the robust performance of its lending operations in rural and semi-urban markets. With an ambitious target of achieving ₹500 crore in AUM by FY29, Shalibhadra Finance plans to more than double its loan book over the next three years, bolstered by new product launches, geographic expansion, technology investments, and a wider branch network.

A key component of Shalibhadra Finance’s growth strategy is its planned entry into the Micro Loan Against Property (Micro LAP) segment, primarily targeting loans below ₹5 lakh. This segment is underpenetrated by larger financial players, making it an attractive opportunity for the company to align with its asset-backed lending model. Additionally, plans to diversify its product offerings—including home loans, property loans, tractor loans, and salaried personal loans—will create multiple revenue growth avenues. The management emphasizes a continued commitment to maintaining asset quality, with Gross Non-Performing Assets (GNPA) at 2.94% and Net Non-Performing Assets (NNPA) at 1.17%. Such metrics reflect Shalibhadra Finance’s disciplined underwriting framework, driven by over thirty years of experience in retail lending.

Investments in digitisation and automation have emerged as integral to Shalibhadra’s operational strategy, enhancing efficiency and facilitating faster processing of smaller-ticket loans. The company is also exploring AI-driven initiatives to bolster customer acquisition and productivity. Currently operating through 61 branches, Shalibhadra plans to expand this footprint to 70 branches by 2026, aiming for a long-term target of 100 branches within three years. Initial growth efforts in Karnataka and Goa are underway, with further plans for expansion into Rajasthan and Madhya Pradesh. By leveraging its expertise in secured lending and local market understanding, coupled with technology adoption and disciplined risk management, Shalibhadra Finance aims to transform into a leading retail finance entity in India’s evolving credit ecosystem.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)