Shalibhadra Finance Q3 FY26 Profit ₹5.03 Cr; AUM Surges Past ₹212 Cr

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AuthorAditi Singh|Published at:
Shalibhadra Finance Q3 FY26 Profit ₹5.03 Cr; AUM Surges Past ₹212 Cr
Overview

Shalibhadra Finance reported a robust Q3 FY26 with Assets Under Management (AUM) crossing ₹212.49 Crores. Profit After Tax stood at ₹5.03 Crores, while Net Interest Income grew 31% YoY to ₹9.54 Crores. The company plans to scale AUM to ₹300 Crores by 2027 and expand its branch network, while investing in technology and diversifying its product suite.

Shalibhadra Finance Q3 FY26: AUM Surges 37% to ₹212.49 Cr, Profit Grows to ₹5.03 Cr

Assets Under Management (AUM) for Shalibhadra Finance Limited crossed ₹212.49 Crores in Q3 FY26, marking a robust 37% year-on-year growth.
Profit After Tax (PAT) for the quarter stood at ₹5.03 Crores, reflecting a steady increase.

Reader Takeaway: Robust AUM and profit growth; rising GNPA and competition remain key focus.

What just happened (today’s filing)

Shalibhadra Finance Limited has reported its financial results for the third quarter ending December 31, 2025 (Q3 FY26).

The company's Assets Under Management (AUM) reached ₹212.49 Crores, an impressive 37% jump year-on-year and an 11% increase quarter-on-quarter.

Profit After Tax (PAT) for the quarter was ₹5.03 Crores. Net Interest Income (NII) showed strong momentum, growing 31% year-on-year to ₹9.54 Crores.

Total Income for the quarter was ₹11.02 Crores, and the Capital Adequacy Ratio (CAR) remained strong at 79.00%, with Gross Non-Performing Assets (GNPA) at 3.01% and Net Non-Performing Assets (NNPA) at 1.13%.

Why this matters

The results signal healthy growth, particularly in AUM, indicating increased market penetration and demand for the company's financial products, especially in its focused rural and semi-urban segments.

The strategic expansion plans, including scaling AUM and increasing branch presence, aim to solidify its market position and drive future profitability.

The backstory (grounded)

Shalibhadra Finance, incorporated in 1992 and listed on BSE in 1995, initially focused on four-wheeler financing in urban areas. Due to increasing competition, it strategically shifted its focus towards two-wheeler financing in rural and semi-urban areas, a segment it serves through an expanding network of branches that currently exceeds 50 locations across multiple states.

The company has demonstrated consistent AUM growth, crossing the ₹100 Crore mark in FY23 and reaching approximately ₹180 Crore by June 2025, setting the stage for its current achievements.

What changes now

  • Shareholders can expect continued focus on aggressive AUM growth, targeting ₹300 Crores by 2027.
  • Expansion of the physical branch network towards 100 locations is a key strategic objective.
  • Investment in technology for enhanced digital onboarding and automated workflows is planned.
  • Diversification of product suite with Micro LAP and Home Loans aims to reduce concentration risk.

Risks to watch

  • Credit Risk: The company monitors credit risk through customer assessments and repayment behaviour, with GNPA and NNPA trends closely watched. GNPA stood at 3.01% in Q3 FY26.
  • Competition: Increasing competition from banks and other NBFCs, particularly in four-wheeler financing, necessitates a strong focus on its niche segments.
  • Interest Rate Risk: Managed through evolving a strategic fund mix to balance borrowing costs.
  • Regulatory: While no major recent regulatory actions were found, the company has historically faced SEBI proceedings for late filings (FY2007).
  • Contingent Liability: A contingent liability of ₹7.79 crore related to demonetisation-era tax issues is pending before tax authorities.

Peer comparison

Shalibhadra Finance operates in the NBFC space, with peers like Sakthi Finance Ltd also focusing on vehicle financing in similar geographies. Larger players like Capri Global Capital Ltd operate with a broader product suite and significantly higher market capitalization. The company's focus on niche segments like two-wheeler financing in rural India differentiates it.

Context metrics (time-bound)

  • The company's AUM grew by 37% year-on-year to ₹212.49 Crores as of Q3 FY26.
  • Profit After Tax (PAT) stood at ₹5.03 Crores for Q3 FY26.
  • Net Interest Income (NII) increased by 31% year-on-year to ₹9.54 Crores in Q3 FY26.
  • Capital Adequacy Ratio (CAR) was reported at 79.00% as of Q3 FY26.
  • Gross Non-Performing Assets (GNPA) were 3.01% as of Q3 FY26.

What to track next

  • Progress towards the '2027 Vision' of ₹300 Crore AUM and the expansion to 100 branches.
  • Performance and uptake of new products like Micro LAP and Home Loans.
  • Sustained improvement or stability in asset quality (GNPA/NNPA) amidst growth.
  • Management's strategy for managing interest rate risks and competition.
  • Impact of technological investments on operational efficiency and customer acquisition.
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