Shalibhadra Finance eyes Rs 500 crore AUM as FY26 profit climbs 22%

Shalibhadra Finance Limited is preparing for its next phase of expansion after reporting strong FY26 earnings and unveiling an ambitious roadmap that aims to more than double its loan book over the next three years. The retail-focused NBFC reported a 21.67% year-on-year increase in Profit After Tax (PAT) to ₹19.48 crore, while Assets Under Management (AUM) grew 24.81% to ₹219.66 crore. Net Interest Income (NII) also registered a healthy growth of 15.03%, reaching ₹35.95 crore, reflecting continued momentum in the company's lending operations across rural and semi-urban markets.

With a target of achieving ₹500 crore in AUM by FY29, Shalibhadra Finance is positioning itself for a 127% expansion from current levels, supported by new product launches, geographic expansion, technology investments, and a growing branch network.

The company believes its balance sheet is well equipped to support this growth journey. With a net worth of approximately ₹172 crore, management indicated that future expansion can be funded largely through debt instruments such as term loans and non-convertible debentures (NCDs), reducing the immediate need for equity dilution.

A major growth driver will be the company's entry into the Micro Loan Against Property (Micro LAP) segment, particularly loans below ₹5 lakh. The segment remains relatively underpenetrated by larger lenders and aligns closely with Shalibhadra Finance's asset-backed lending approach. The company also plans to expand its product portfolio through home loans, property loans, tractor loans, and salaried personal loans, creating multiple avenues for portfolio diversification and revenue growth.

While pursuing expansion, the company continues to maintain a focus on asset quality. Gross Non-Performing Assets (GNPA) stood at 2.94%, while Net Non-Performing Assets (NNPA) remained at 1.17%. Management attributes the performance to its disciplined underwriting framework and more than three decades of experience in retail lending.

Technology is emerging as another strategic pillar. Shalibhadra Finance has been investing in digitisation and automation to improve operational efficiency, strengthen risk management, and support faster processing of smaller-ticket loans. The company is also evaluating AI-driven initiatives to enhance customer acquisition, database utilisation, and productivity.

On the distribution side, the lender currently operates through 61 branches and plans to increase this to 70 branches by 2026, with a longer-term goal of reaching 100 branches over the next three years. Expansion into Karnataka and Goa has already begun, while Rajasthan and Madhya Pradesh are expected to be among the next growth markets.

As India's rural and semi-urban credit ecosystem continues to evolve, Shalibhadra Finance is betting that its combination of secured lending, local market expertise, technology adoption, and disciplined risk management can help transform it from a regional lender into a significantly larger retail finance franchise over the coming years.