SBFC Finance (SBFC) Q2 25/26 earnings summary

Executive summary

• Achieved AUM of ₹9,938 crore as of September 2025, surpassing ₹10,000 crore in October, with 29% year-over-year and 6% quarter-on-quarter growth.

• Profit after tax rose 30% year-over-year to ₹109 crore for Q2 FY26.

• MSME AUM forms 82% of total, growing at 29% year-over-year and 6% quarter-on-quarter.

• Branch network expanded to 220, with Gold loans offered in 185 branches and plans to add 15 more for Gold in the next two quarters.

• Focus remains on secured lending, with minimal unsecured exposure and compliance with regulatory requirements.

Financial highlights

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

• Yield for the quarter at 18.01%, spread at 9.05%, and cost of borrowing at 8.96%-9.14%.

• OpEx to AAUM ratio improved to 4.40% in Q2 FY26.

• Return on Average AUM at 4.56%; Return on Average Tangible Equity at 14.09% in Q2 FY26.

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

Outlook and guidance

• Maintains guidance of 5%-7% AUM growth quarter-on-quarter.

• Credit cost expected to remain rangebound but may increase by 10-15 bps before peaking.

• No plans to add new products beyond MSME and Gold loans in the medium term; focus on deepening distribution.

• Spreads expected to remain stable around 9% for FY2026.

• Strong capital and liquidity coverage ratios support future growth.