Shalibhadra targets ₹500 cr AUM by FY29. Its return on assets will shrink.
The NBFC plans to triple its loan book without new equity, but ROA will compress from 8.65% to about 7% as it shifts into more competitive products.
— 1 earlier story on Shalibhadra Finance Ltd. →What's new
- Shalibhadra targets ₹500 cr AUM by FY29, more than double the current ₹220 cr.
- ROA is guided down from 8.65% to around 7% over two to three years.
- Branch network to grow from 61 to 100 outlets by FY29.
Why this matters
Management is trading margin for scale. The growth plan is specific and ambitious, but the ROA compression is a direct admission that the new business will earn less. The promise of no dilution and a two-notch rating upgrade at the target size is the counterbalance.
What we're watching
- Execution on the 39 new branches and the shift to secured products.
- Whether the AUM growth trajectory holds against the guided margin decline.
- The actual timing and magnitude of the expected credit rating upgrade.
The full read
Shalibhadra Finance is aiming to more than double its assets under management to ₹500 crore by fiscal year 2029. The plan, laid out on a post-results call, involves growing the loan book from ₹220 crore without raising new equity. To do it, the company will expand its branch network from 61 to 100 outlets and shift its product mix so 60% of loans are two-wheelers and 40% are new secured products. The trade-off is explicit: management guided ROA to compress from 8.65% to about 7% over the next two to three years because of the product shift and competitive margin pressure. The upside case is a two-notch credit-rating upgrade at the ₹500 crore milestone, which would lower funding costs. The roadmap is clear. Whether the margin dilution stays within the guide is the main execution test.
Questions answered
- What is Shalibhadra's five-year growth target?
- The company plans to grow assets under management from ₹220 crore to ₹500 crore by fiscal year 2029. Management stated this will be achieved without any further equity dilution to shareholders.
- Why is the company guiding for a lower return on assets?
- ROA is expected to compress from 8.65% to about 7% over the next two to three years. The compression is driven by two factors: a planned shift in product mix towards new secured loan categories and competitive pressure on margins.
- What is the expected benefit of achieving the ₹500 crore AUM?
- Management anticipates a credit rating upgrade of roughly two notches once AUM hits the ₹500 crore level. A higher rating is expected to lower the company's funding costs, which would partially offset the lower ROA.
- How does the company plan to support this growth?
- Shalibhadra plans to nearly double its branch network from 61 to 100 locations by FY29. The product mix at the target will be 60% two-wheelers and 40% new secured products.
Story so far
All notes on SAHLIBHFI →- 1 Jun 2026 · 5:28 PM IST Shalibhadra targets ₹500 cr AUM by FY29. Its return on assets will shrink.
- today Shalibhadra Finance's transcript is a receipt, not an update