Every lending business dreams of hitting the sweet spot: expanding the loan book, improving asset quality, and keeping profitability intact. Nagpur-based Berar Finance Limited, a 34-year-old NBFC, seems to be inching closer to that balance in H1 FY26.
But what makes the story more compelling is not just what the balance sheet reveals… it’s how large investors are valuing the franchise differently from what near-term earnings suggest.
Let’s break it down.
Founded in 1990 by M. G. Jawanjal, Berar Finance built its business model around Tier-II and Tier-III India long before fintechs began pitching “Bharat” as the next big lending market.
125 branches
Presence across Maharashtra, Gujarat, MP, Chhattisgarh, Telangana, Karnataka & Odisha
2.55 lakh+ borrowers
2,000+ employees
Two-wheeler financing remains its core, but Berar now lends across used cars, personal loans, and secured MSME credit, creating a diversified and less cyclical portfolio.
Revenue grew 17% YoY, supported by lending volume and fee income.
But higher borrowing costs compressed margins.
PAT slipped from ₹16 crore to ₹13 crore.
Interpretation: Berar is scaling responsibly, focusing on quality growth over chasing high spreads.
Real highlight: Asset quality improvement.
GNPA: 5.72% → 4.52%
NNPA: 3.54% → 2.94%
For a two-wheeler & MSME heavy lender, this is a major shift. It reflects tighter underwriting and stronger collections — especially crucial as regulators get tougher on small-ticket lending.
Berar Finance recently raised ₹140.76 crore via preferential allotment.
Institutional investors paid ₹610.05 per share.
With a book value of ₹224 (as of March 2025), the implied valuation is:
That’s the kind of premium lenders earn when long-term investors believe:
scalability is proven
asset quality is structurally improving
growth will compound without reckless lending
governance is tested and trusted
Simply put, investors are paying today for the Berar they believe will exist 3–5 years from now.
Berar Finance isn’t chasing flashy growth. It’s building a stable, risk-aware lending franchise for semi-urban India. Asset-quality trends are improving, revenue visibility is strengthening, and fresh equity has entered at a valuation that signals deep conviction.
The market may take time to recognize this shift — institutional capital already has.
The key challenge now?
maintain underwriting discipline
protect margins as borrowing costs rise
scale without compromising quality
Based on H1 FY26, Berar looks well-positioned. This is a business growing quietly, steadily — and with confidence from serious capital.
UnlistedZone is not a SEBI-registered Research Analyst or Investment Advisor. All information provided on our platform is strictly for educational and informational purposes. We do not offer investment advice or stock recommendations. Investors are advised to conduct their own due diligence or consult a SEBI-registered advisor. Investments in unlisted and pre-IPO shares are subject to market risks including illiquidity and volatility. UnlistedZone does not assure any returns or accept liability for investment outcomes based on this report.
