Shalibhadra Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Shalibhadra Finance Ltd filed with BSE on 05 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Shalibhadra Finance reported FY26 AUM of 220 crores, up 25% from 176 crores in FY25, with PAT growing 21.67% YoY to 19.48 crores. The company maintained a nearly 100% secured book, GNPA of 2.94%, and a CRAR of 78.28%, while listing on NSE and launching new segments including micro-LAP, home loans, and personal loans under its Shalibhadra 2.0 strategy. Management outlined plans to expand branches from 61 to 100 and targeted an AUM of 500 crores by FY29.
Numbers mentioned
AUM: 220 crores (FY26)
p. 3
“We closed the year with an AUM of 220 crores, a 25% growth from 176 crores in FY25.”
Vatsal Doshi, page 3 of the filed PDF · View the filing
PAT growth: 21.67% YoY to 19.48 crores (FY26)
p. 3
“Our PAT grew 21.67% YoY to 19.48 crores and a robust ROI of 8.65% and a ROE of 11.33%.”
Vatsal Doshi, page 3 of the filed PDF · View the filing
GNPA: 2.94% (FY26)
p. 3
“We maintained our nearly 100% secured book, kept our GNPA 2.94% and brought our CRAR to a very strong 78.28%”
Vatsal Doshi, page 3 of the filed PDF · View the filing
CRAR: 78.28% (FY26)
p. 3
“kept our GNPA 2.94% and brought our CRAR to a very strong 78.28% which gives us a substantial headroom to scale without needing equity dilution for the foreseeable future.”
Vatsal Doshi, page 3 of the filed PDF · View the filing
Net worth: 172 crores (FY26)
p. 3
“With a net worth of 172 crores and a CRAR of 78.28%, we are in a position of strength.”
Vatsal Doshi, page 3 of the filed PDF · View the filing
Total borrowing: 50 crores (as on 31st March)
p. 6
“So, as on 31st March, our total borrowing was around 50 crores out of which I think 20 crores would be from nationalized banks.”
Vatsal Doshi, page 6 of the filed PDF · View the filing
Yield on advances: 20.8% (FY26)
p. 8
“And yield on advances has declined from 25.4% in FY24 to 20.8% in FY26.”
Dhaval Pandya, page 8 of the filed PDF · View the filing
Credit cost - two-wheeler loans: 2% (current)
p. 4
“So, I expect that currently our credit cost is in the range of 2% for two-wheeler loans.”
Vatsal Doshi, page 4 of the filed PDF · View the filing
NNPA: 1% (current)
p. 7
“Currently, our NNPA is in the range of 1%.”
Vatsal Doshi, page 7 of the filed PDF · View the filing
Number of branches: 61 branches (current)
p. 6
“currently with 61 branches, we are targeting 100 branches by FY29.”
Vatsal Doshi, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM — 500 crores · FY29
stated firmly by Vatsal Doshi
p. 3
“Looking forward, our FY29 target is an AUM of 500 crores and our path is anchored by three pillars of the Shalibhadra 2.0 strategy that I want to speak in specific.”
Vatsal Doshi, page 3 of the filed PDF · View the filing
AUM — 1,000 crores · without diluting equity, near future
stated firmly by Vatsal Doshi
p. 3
“With the use of NCDs and term loans, that is why we have debt, we will be able to reach an AUM of 1,000 crores in near future without diluting equity.”
Vatsal Doshi, page 3 of the filed PDF · View the filing
Number of branches — 100 branches · FY27
stated firmly by Vatsal Doshi
p. 4
“We are targeting 100 branches by FY27, with selective entry in high-potential new states, including Karnataka and Goa, adding to our existing presence across Maharashtra, Gujarat, Madhya Pradesh, and Rajasthan.”
Vatsal Doshi, page 4 of the filed PDF · View the filing
ROA — around 7% · next two to three years
stated as an aspiration by Vatsal Doshi
p. 5
“Currently, ROA is in the range of 8.65%. So, within next two to three years, we expect it to be around 7%.”
Vatsal Doshi, page 5 of the filed PDF · View the filing
Credit cost - mortgage loans — 1%
stated as an aspiration by Vatsal Doshi
p. 4
“We expect that the credit cost will be in the range of 1% in the case of mortgage loan.”
Vatsal Doshi, page 4 of the filed PDF · View the filing
Nationalized bank borrowing share — 50 to 60% · FY29
stated as an aspiration by Vatsal Doshi
p. 6
“So, currently 40% is the nationalized bank borrowing and we expect this to be in the range of 50 to 60%.”
Vatsal Doshi, page 6 of the filed PDF · View the filing
Branch rollout — one branch per month, 36 branches in 36 months · 36 months
stated firmly by Vatsal Doshi
p. 8
“We are targeting one branch every month. That is what our target is. So, within 36 months, we'll add 36 branches.”
Vatsal Doshi, page 8 of the filed PDF · View the filing
NNPA — around 1% · next 2-3 years
stated as an aspiration by Vatsal Doshi
p. 7
“Going forward, I think it will be in the same range. For next 2-3 years.”
Vatsal Doshi, page 7 of the filed PDF · View the filing
AUM — 1000 crores · within five years
stated conditionally by Vatsal Doshi
p. 10
“Maybe another two years, within five years, we'll be able to reach 1000 crores AUM if everything goes right.”
Vatsal Doshi, page 10 of the filed PDF · View the filing
Portfolio mix - two-wheelers vs new products — two wheelers at 60%, other products 40% · next three years
stated as an aspiration by Vatsal Doshi
p. 11
“So what, what I said earlier, also what we're targeting is that next three years two wheelers would remain at 60% and what other newer products would be 40%.”
Vatsal Doshi, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Mortgage/home loans expected to have lower credit cost than two-wheeler loans due to being secured by immovable assets.
Answered by Vatsal Doshi
Asked by Dhaval Pandya: What credit cost is expected for LAP and home loans versus vehicle finance?
p. 4
“Home loan and mortgage loan would have a lower credit cost compared to a two-wheeler loan.”
Vatsal Doshi, page 4 of the filed PDF · View the filing
40% of new loans go to existing customers from a base of around 5 lakh customers.
Answered by Vatsal Doshi
Asked by Kriya Shah: What percentage of portfolio is from repeat borrowers?
p. 4
“So, currently, 40% of the whatever new loans we are offering are to the same existing customer.”
Vatsal Doshi, page 4 of the filed PDF · View the filing
Currently 40% from nationalized banks, expected to reach 50-60% by around FY29.
Answered by Vatsal Doshi
Asked by Rahul Singh: What is the current mix of bank versus NBFC borrowing and how will it evolve?
p. 6
“So, currently 40% is the nationalized bank borrowing and we expect this to be in the range of 50 to 60%.”
Vatsal Doshi, page 6 of the filed PDF · View the filing
Management expects gradual reduction in NCD rates, increased bank borrowing share, and automatic rating upgrade with AUM growth.
Answered by Vatsal Doshi
Asked by Rohan Choksi: How will the company reduce cost of funds and improve credit rating as it scales?
p. 7
“So, if we reach 500 crores, there will be an automatic increase of two notches in credit rating.”
Vatsal Doshi, page 7 of the filed PDF · View the filing
Since lending rates are fixed, only borrowing costs and spreads would be affected, not lending strategy.
Answered by Vatsal Doshi
Asked by Rohan Choksi: What would be the impact of RBI rate hikes on the business?
p. 7
“So, our lending rate remains same irrespective of whatever may be the action by RBI.”
Vatsal Doshi, page 7 of the filed PDF · View the filing
Management expects some pressure on spreads and ROA due to competition, though market demand is large.
Answered by Vatsal Doshi
Asked by Darshil: How does increased competition affect margins as the company expands?
p. 8
“There may be some pressure on our margins and maybe in the next two to three years, the ROA will be in the range of 7%.”
Vatsal Doshi, page 8 of the filed PDF · View the filing
Management attributed the decline to overall market rate compression, competition, and a shift toward better credit quality customers at lower rates.
Answered by Vatsal Doshi
Asked by Dhaval Pandya: Why has yield on advances declined from 25.4% in FY24 to 20.8% in FY26?
p. 9
“There has been a reduction in margin, overall reduction in lending rates.”
Vatsal Doshi, page 9 of the filed PDF · View the filing
Management uses informal assessment methods including local reference checks, property estimates, and produce/milk receipts.
Answered by Vatsal Doshi
Asked by Darshil: How does the company assess credit risk for customers without formal CIBIL records?
p. 9
“We have developed our own unique assessment mechanism for these customers.”
Vatsal Doshi, page 9 of the filed PDF · View the filing
Management estimated around 60% share of financed vehicle sales in its core operating geographies.
Answered by Vatsal Doshi
Asked by Darshil: What market share does the company hold in its operating districts?
p. 9
“In the areas where we are operating currently, we could say around 60% of the vehicles which are being sold are financed by us in the geographies where we are operating.”
Vatsal Doshi, page 9 of the filed PDF · View the filing
Management cited customer dependence on agriculture and irregular rainfall as a potential risk to growth and asset quality.
Answered by Vatsal Doshi
Asked by Darshil: What risks could hinder the path to 1000 crores AUM?
p. 10
“So, if there is some drought, or maybe because of there is some irregular rainfall, that would be a dampener because of which there will be a spike in NPAs and we might have to slow down our growth.”
Vatsal Doshi, page 10 of the filed PDF · View the filing
Management said a branch reaching 50 lakhs AUM within 1-1.5 years typically breaks even.
Answered by Vatsal Doshi
Asked by Ayush Divecha: What is the break-even AUM per branch and time to profitability?
p. 10
“Typically, if a branch reaches 50 lakhs of AUM, that is a good thing if it is able to reach that AUM, maybe say within 1-1.5 years.”
Vatsal Doshi, page 10 of the filed PDF · View the filing
Management described hiring a new Chief Risk Officer who introduced new underwriting software and tightened credit policies.
Answered by Vatsal Doshi
Asked by Ayush Divecha: How is underwriting quality and risk management being ensured, including AI's role?
p. 11
“We have recently added a new Chief Risk Officer to our team maybe six months back.”
Vatsal Doshi, page 11 of the filed PDF · View the filing
Risks flagged
Customer dependence on agriculture and irregular rainfall could increase NPAs and slow growth
p. 10
“majority of our customer depend on agriculture as their source of income. So, if there is some drought, or maybe because of there is some irregular rainfall, that would be a dampener because of which there will be a spike in NPAs”
Vatsal Doshi, page 10 of the filed PDF · View the filing
Increased competition may pressure margins and spreads
p. 8
“There may be some pressure on our margins and maybe in the next two to three years, the ROA will be in the range of 7%. There may be some reduction in spread because of competition.”
Vatsal Doshi, page 8 of the filed PDF · View the filing
RBI rate increases could raise borrowing costs and reduce spread since lending rates are fixed
p. 7
“So, if there is an increase in rate by RBI, our borrowing cost will go up, which will lead to a lower spread.”
Vatsal Doshi, page 7 of the filed PDF · View the filing
Overall market yield compression due to broader industry rate reductions and competition
p. 9
“Overall yields in the market have also reduced at the rate with what we are lending.”
Vatsal Doshi, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.