Shalibhadra Finance Ltd - Consolidated Key Performance Highlights for Q4 FY25 and FY25

Shalibhadra Finance Limited (BSE Code - 511754), a leading two-wheeler financier with a deep presence in the underbanked geographies of Gujarat, Maharashtra, and Madhya Pradesh, reported robust financials and operational performance for FY25, driven by disciplined lending, strong asset quality, and efficient cost control.

Financial Highlights: PAT rises 34% YoY to reach INR 160 million

- Improved Profitability: Net profit soared 34% YoY to INR 160 million in FY25. Q4 FY25 profit also grew 34% YoY to INR 44 million, reflecting strong cost management and scale.

- Core Lending Income: Net Interest Income (NII) grew by 13% YoY in FY25, reaching INR 295.8 million, and by 16% YoY in Q4 FY25 to INR 84.3 million.

- Stable Credit Costs: Credit costs remained steady at 1.6% for FY25, reflecting continued financial resilience.

- Strong Capital Position: Capital adequacy stood at a robust 85.7% as of March 2025, supported by a net worth of INR 1,543 million - offering ample headroom for future growth.

- Profitability Ratios: Return on Equity (ROE) stood at 9.2% for FY25, moderated by the increase in equity following the fundraising during the year, while Return on Assets (ROA) remained strong at 5.9%, reflecting continued operational efficiency.

Operational Highlights: Portfolio Growth, Network Expansion, and Stable Asset Quality

- Disbursements and Assets Under Management (AUM): Disbursements rose 16.1% YoY to INR 1,075.6 million, and AUM expanded 30.6% YoY to INR 1,799.9 million, underscoring strong demand despite headwinds in the auto sector.

- Asset Quality: As of March 2025, Gross NPA stood at 2.87% and Net NPA at 0.74% (on a 150 dpd basis), supported by robust borrower profiling and risk management practices.

- Network Expansion: The Company expanded its footprint to 53 branches, reinforcing its strategic goal of reaching deeper into underserved rural and semi-urban markets.

Founder & Managing Director, Mr. Minesh M Doshi Commented: "We are pleased to report another year of strong growth and profitability, underpinned by prudent cost management, disciplined lending, and a resilient business model. Our technology-led operations have enhanced efficiency, enabling us to maintain a solid profit margin of 44%.

Despite macro headwinds in the auto industry, we achieved a commendable 16% year-on-year increase in disbursements, driven by our deep rural reach and the steady rise in disposable incomes across semi-urban and rural regions. Our Gross NPA stood at 2.87% and Net NPA at 0.74%, underscoring continued strength in asset quality.

With a capital adequacy ratio of 85.7%, we enjoy substantial headroom to fund our growth plans without immediate capital infusion. As we enter a declining interest rate environment, we anticipate a reduction in our cost of borrowing, further supporting margin stability and earnings momentum.

Looking ahead, our expansion strategy remains firmly on track. We are progressing towards our guidance of 100 branches by FY27, focused on reaching underserved segments. Our target to grow the loan book to INR 2,750 million is well within reach. With these enablers in place and a continued focus on improving return on equity, we are confident in our ability to deliver sustained value to all stakeholders."

Shares of SHALIBHADRA FINANCE LTD. was last trading in BSE at Rs. 139.50 as compared to the previous close of Rs. 144.90. The total number of shares traded during the day was 19499 in over 526 trades.

The stock hit an intraday high of Rs. 146.70 and intraday low of 139.00. The net turnover during the day was Rs. 2760798.00.

Source : Equity Bulls

Keywords

SHALIBHADRAFINANCE INE861D01011 NBFC Q4FY25 FY2025 ResultUpdate