Overview
Vallibel Finance is a nationwide non-bank lender spanning gold-backed loans, consumer and commercial credit, and vehicle leasing, with a growing digital platform. Scale and capital have stepped up together: FY2025/26 delivered strong profit growth and the company completed a rights issue to reinforce Tier 1 capital, while management reports the asset base has since exceeded LKR 200 billion. The caveat is execution on profitability: March is typically the strongest quarter for net margin, yet this March printed the weakest like-for-like margin in six years.
Price performance
As of 7 Aug 2026 the share closed at LKR 92.30. It fell 18.3% over 12 months against the ASPI’s 9.5% gain, but the move in recent months has been steadier. Returns are restated for a March 2026 rights issue; as-traded history will differ. The stock sits about 24% below its 52-week high, with volatility running below its own one-year norm and recent volumes quieter than usual.
Valuation
VFIN trades at 6.06x P/E versus a sector median 7.68, while ROE of 19.4% indicates healthy profitability. The dividend yield is 3.0% on today’s price, and the payout trend is upward, with DPS of LKR 2.67 in FY2025 versus LKR 1.94 in FY2024. Overall, the earnings multiple looks discounted for the achieved returns, with a moderate income component.
News and sentiment
Coverage is about normal, with 4 material articles in 90 days, 3 of them positive. The company raised about LKR 2.1 billion via an oversubscribed rights issue to strengthen Tier 1 capital, reported FY2025/26 PBT of LKR 7.6 billion, and disclosed that total assets exceeded LKR 200 billion as at 31 Jul 2026. It also cited an NPL ratio of 2.53% alongside portfolio growth. No negative articles were recorded in the window.
Financials
Quarter to March 2026: operating margin was 51.2% versus 60.5% a year earlier, and net margin 22.4% versus 30.6%. Finance costs and tax absorbed a sizeable share of earnings, with a below-the-line drag of LKR 1.18 billion. March is structurally its strongest quarter for net margin, yet this print ranked the weakest of its recent March results, so the like-for-like softness is notable.
Full year FY2025/26: net profit was LKR 3.67 billion, improving year-on-year as revenue and operating profit expanded. Filings run to 31 Mar 2026; subsequent disclosures indicate the balance sheet has grown further by end-July, which is outside the period covered by these accounts.
Risks
Funding leverage is the primary risk: total debt was LKR 67.93 billion at 359.4% of owners’ equity at end-March 2026, increasing sensitivity to funding costs and liquidity conditions. Market risk is non-trivial: the share is down 18.3% over 12 months, and trading liquidity has been lighter recently. Supervisory scrutiny in the finance sector has intensified, which could constrain growth in segments like vehicle financing if loan-to-value rules tighten further.
Outlook
As at 7 Aug 2026 the next set of figures, for the quarter to 30 Jun 2026, is due, with the exchange’s typical window running from 28 Jul to 26 Oct. The key near-term watch is whether net margin stabilises after March’s like-for-like dip, and how the post-rights capital base translates into loan growth. Easing T-bill yields provide a supportive backdrop for funding costs, but the June print will show how much of that benefit is flowing through.