Shalibhadra Finance targets ₹500 cr AUM by FY29
The retail NBFC grew its AUM by 24.8% to ₹219.66 cr in FY26, with plans to nearly double its branch network and enter new lending segments.
What's new
- FY26 AUM hit ₹219.66 cr, up 24.8%.
- Net profit rose 21.7% to ₹19.48 cr.
- Branch network to grow from 61 to 100 locations over three years.
Why this matters
Shalibhadra is moving beyond its core two-wheeler financing niche. Diversifying into home loans and tractor financing changes its risk profile, but the company enters this phase with a strong capital adequacy ratio of 78.28%.
What we're watching
- Execution of the branch expansion plan.
- Asset quality metrics as the company enters new lending segments.
- Progress toward the ₹500 cr AUM milestone.
The full read
Shalibhadra Finance closed FY26 with ₹219.66 crore in assets under management, a 24.8% increase that reflects steady growth for the retail-focused NBFC. Net profit followed suit, rising 21.7% to ₹19.48 crore. With net non-performing assets at 1.17% and a capital adequacy ratio of 78.28%, the balance sheet appears stable. The company now looks to more than double its size, setting a target of ₹500 crore in AUM by FY29. To get there, management plans to expand its footprint from 61 to 100 branches. The real shift, however, is the move away from its core two-wheeler financing business into micro loans against property, home loans, and tractor financing. This diversification will test the company's underwriting capabilities in new markets. The next test is whether this expansion can maintain current asset quality levels.
Questions answered
- How did the company perform in FY26?
- Shalibhadra reported a 24.8% increase in AUM to ₹219.66 crore and a 21.7% rise in net profit to ₹19.48 crore.
- What is the company's long-term growth target?
- Management aims to reach an AUM of ₹500 crore by FY29.
- How does the company plan to reach its growth targets?
- The company plans to expand its branch network from 61 to 100 locations and enter new segments including micro loans against property, home loans, and tractor financing.
- What is the current state of the company's asset quality and liquidity?
- Net non-performing assets stand at 1.17%. The company maintains a capital adequacy ratio of 78.28%.