SBFC Finance (SBFC) investor relations material

Executive summary

• Achieved 29% YoY AUM growth to ₹11,270 crore, with 8% QoQ growth; book remains nearly 100% secured by property or gold.

• PAT for FY26 was ₹451 crore, up 31% YoY; Q4 PAT at ₹123 crore, up 30% YoY.

• Branch network expanded by 46 in FY26, totaling 251 branches, exceeding guidance.

• Gross NPA improved to 2.61%, down 13 bps YoY, with a provision coverage ratio of 41.64%.

• Audited financial results for FY26 were approved with an unmodified audit opinion from statutory auditors.

Financial highlights

• Total income for FY26 grew 28.6% YoY to ₹1,679 crore; Q4 income up 25.7% YoY to ₹454 crore.

• Net profit for FY26 stood at ₹4,508.33 million, compared to ₹3,451.68 million in FY25.

• MSME AUM at ₹8,873 crore (79% of AUM), up 22% YoY; gold AUM at ₹2,374 crore (21% of AUM), up 63% YoY.

• Yield for FY26 at 17.84%; cost of borrowing at 8.52% for Q4 and 8.85% for FY26.

• Tangible net worth at ₹3,465 crore; capital adequacy ratio at 32.84%.

Outlook and guidance

• Guidance for 5%-7% quarterly growth maintained; AUM expected to double in 3–3.5 years.

• Branch count to stabilize at 275 in FY27, with focus on consolidation.

• Portfolio mix to remain 75% MSME, 25% gold; gold share may rise to 25% with firm prices.

• Spreads expected to hold at 9%; OpEx to decline by 20–25 bps as new branches mature.

• Security cover for NCDs remains robust at 1.10x as per regulatory requirements.