SBFC Finance (SBFC) Q1 26/27 earnings summary

Executive summary

• Achieved 27% year-on-year and 6% quarter-on-quarter AUM growth, reaching ₹11,922 crore as of June 2026.

• PAT rose 29% year-on-year and 6% quarter-on-quarter to ₹130 crore, with ROE at 14.7%.

• Gross NPA stood at 2.66% with a provision coverage ratio (PCR) of 42%.

• Cost-to-AUM ratio improved by 30 bps year-on-year to 4.29%.

• Unaudited financial results for the quarter ended June 30, 2026, were approved by the Board on July 25, 2026.

Financial highlights

• Total income for Q1 FY27 was ₹4,915.65 million, up from ₹3,885.42 million in Q1 FY26 and ₹4,541.42 million in Q4 FY26.

• Net profit after tax for Q1 FY27 was ₹1,301.23 million, compared to ₹1,008.92 million in Q1 FY26.

• MSME AUM grew 4.5% quarter-on-quarter to ₹9,271 crore; gold loan AUM up 11% quarter-on-quarter to ₹2,631 crore.

• Yield on loans was 17.90%, spread was 9.48%, and net interest margin was 10.68%.

• PPOP improved 7.3% quarter-on-quarter and 34.4% year-on-year.

Outlook and guidance

• Guidance for ROE, spreads, and cost reduction remains unchanged for the coming quarter.

• Expect credit cost to remain range-bound at 1.4–1.5% for the next two quarters.

• Branch expansion to slow, with 10–15 new branches planned for the year, focusing on productivity of recent additions.

• Focus remains on secured MSME lending in the ₹5–30 lakh segment, targeting a market growing at 23% CAGR.

• The company maintains sufficient security cover for its secured listed non-convertible debentures, with a security cover ratio of 1.20x as of June 30, 2026.