SBFC Finance (SBFC) Q2 25/26 earnings summary

Executive summary

• Achieved AUM of INR 10,000 crore, up 29% year-over-year, surpassing INR 10,000 crore in October 2025.

• PAT for the quarter at INR 109 crore, up 30% YoY.

• MSME AUM constitutes 82% of total, growing at 29% YoY and 6% QoQ.

• Branch network expanded to 220, with pan-India presence across 16 states and 2 union territories.

• Focus remains on secured lending to MSMEs and gold loans, with minimal unsecured exposure.

Financial highlights

• Total income for Q2 FY26 was ₹411 crore, up 30.8% YoY; PAT was ₹109 crore, up 30%.

• Yield for the quarter at 18.01%, spread at 9.05%, both improved YoY and QoQ.

• Cost of borrowing reduced to 8.96%, down 36 bps YoY and QoQ.

• OpEx improved by 19 bps QoQ and 20 bps YoY despite branch expansion; Opex to AAUM ratio improved to 4.40%.

• Basic EPS for Q2 FY26 was ₹1.00 (not annualized).

Outlook and guidance

• Guidance maintained for 5-7% AUM growth QoQ and 25-30% annual growth.

• Credit cost expected to rise by 10-15 bps before peaking.

• ROE target remains at 15% as leverage increases moderately.

• Strong capital position and liquidity coverage ratio support future growth.

• No deviation in the use of NCD proceeds; funds used for MSMEs and gold loans.