SBFC Finance (SBFC) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 AUM reached ₹12,592 crore, up 27% YoY and 6% QoQ; net profit was ₹1,388.74m, up 27.2% YoY.

• ROATE was 15.04%; debt-to-equity was 2.31x.

• Statutory auditors issued an unmodified limited review conclusion on Q2 and H1 results.

Financial highlights

• Q2 total income was ₹5,466.62m; revenue from operations was ₹5,463.87m, versus ₹4,107.84m YoY.

• Q2 PBT was ₹1,857.79m versus ₹1,458.84m YoY; net profit was ₹1,388.74m versus ₹1,091.35m.

• H1 revenue from operations was ₹10,378.51m and PBT ₹3,599.01m; net profit reached ₹2,689.97m versus ₹2,100.26m YoY.

• Q2 finance costs were ₹1,959.68m and impairment expense ₹414.44m; basic and diluted EPS were ₹1.25 each.

Segment performance

• Secured MSME AUM was ₹9,669 crore, up 18% YoY; Q2 disbursements were ₹855 crore, up 6% QoQ, with average ticket size of ₹10.78 lakh.

• Co-origination accounted for ₹112 crore, or 13%, of Q2 secured MSME disbursements; co-origination AUM was ₹1,746 crore, or 18%.

• Gold-loan AUM was ₹2,906 crore, or 23% of AUM; lending operated in 236 of 257 branches.

• AUM was distributed across 202 cities in 18 states and 2 UTs; operations comprise one financing business and one domestic geographical segment.