Shalibhadra Finance Limited, a leading two-wheeler financing company with a deep presence in Gujarat, Maharashtra, and Madhya Pradesh, has reported a 34 per cent year-on-year rise in net profit for FY25, reaching Rs 160 million. The company’s performance was supported by disciplined lending, cost efficiency, and robust asset quality.Financial Highlights – FY25:Net Profit: Rose 34 per cent year-on-year to Rs 160 million. Q4 FY25 profit also increased by 34 per cent to Rs 44 million.Net Interest Income (NII): Up 13 per cent YoY to Rs 295.8 million for the full year and 16 per cent to Rs 84.3 million in Q4.Credit Costs: Remained stable at 1.6 per cent, underscoring financial resilience.Capital Adequacy: Stood at a strong 85.7 per cent as of March 2025, supported by a net worth of Rs 1.54 billion.Profitability Ratios: Return on Equity (ROE) stood at 9.2 per cent, moderated by equity infusion, while Return on Assets (ROA) remained healthy at 5.9 per cent.Operational Highlights – FY25:Disbursements: Increased by 16.1 per cent YoY to Rs 1.08 billion.Assets Under Management (AUM): Rose 30.6 per cent to Rs 1.8 billion.Asset Quality: Gross NPA at 2.87 per cent and Net NPA at 0.74 per cent, based on 150-day past due classification.Branch Network: Expanded to 53 locations, reinforcing its reach into rural and semi-urban areas.Management Commentary:Founder and Managing Director, Mr Minesh M Doshi, remarked, “FY25 has been a year of strong growth despite challenges in the auto sector. Our deep rural reach, rising demand in semi-urban regions, and technology-driven operations have helped us maintain a healthy profit margin of 44 per cent. With a capital adequacy of 85.7 per cent, we are well-positioned to scale without immediate capital infusion.”He added that the company’s branch expansion strategy remains on track, aiming for 100 branches by FY27 and a loan book of Rs 2.75 billion. A declining interest rate environment is also expected to reduce borrowing costs, further supporting profitability.