SBFC Finance (SBFC) Q3 25/26 earnings summary

Executive summary

• AUM reached ₹10,478 crore as of December 2025, up 29% YoY and 5.4% QoQ, with nearly 100% of the book secured by property and gold.

• PAT for the quarter was ₹118 crore, up 34% YoY and 8% QoQ.

• MSME AUM forms 81% of total, growing 25% YoY; gold loans now 19% of AUM, up 48% YoY and 14% QoQ.

• Management transition announced: CEO moves to non-executive vice chairman, with continuity in leadership.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on January 24, 2026, following Audit Committee review.

Financial highlights

• Total income for Q3 FY26 was ₹426 crore, up 27.8% YoY; PAT was ₹118 crore, up 34% YoY.

• Yield for the quarter at 17.78%, down 23 bps QoQ and 3 bps YoY; cost of borrowing at 8.74%, down 22 bps QoQ and 57 bps YoY.

• Spread stable at 9.04% QoQ, up 54 bps YoY.

• Cost-to-income ratio reduced to 35%; operating expenses to AAUM ratio improved to 3.93%.

• Net profit margin for the quarter was 27.72%.

Outlook and guidance

• AUM growth guidance maintained at 5%-7% QoQ for FY 2026.

• Operating cost expected to reduce by 50 bps for the year; further guidance on cost reduction to be provided in April.

• Credit cost guidance for next quarter is a 5-10 bps variation; full-year guidance to be given in April.

• No deviation in use of proceeds from NCDs; funds fully utilized for on-lending to secured MSMEs and gold loans.

• Management remains cautious on disbursal growth, especially in southern and eastern markets due to portfolio quality concerns.