SBFC Finance (SBFC) Q3 25/26 earnings summary

Executive summary

• AUM reached ₹10,478 crore as of December 2025, up 29% YoY and 5% QoQ, with nearly all loans secured by property or gold.

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

• MSME loans comprise 81% of AUM, growing 25% YoY, while gold loans are 19% of AUM, up 48% YoY and 14% QoQ.

• The company operates 230 branches across 17 states and 2 UTs, focusing on secured MSME loans in the ₹5–30 lakh segment.

• 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 was 17.78%, down 23 bps QoQ and 3 bps YoY; spread stable at 9.04% QoQ, up 54 bps YoY.

• Cost of borrowing at 8.74%, down 22 bps QoQ and 57 bps YoY.

• GNPA at 2.71%, PCR at 46.21%, credit cost at 1.29%.

• Capital adequacy ratio at 31.7%, tangible net worth ₹3,306 crore.

Outlook and guidance

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

• Operating cost reduction of 50 bps targeted for the year, with further efficiency improvements planned.

• Credit cost expected to remain within a 5-10 bps range in the next quarter; full-year guidance to be provided in April.

• The MSME financing market (₹5–30 lakh) is estimated at ₹4 lakh crore, growing at a 24% CAGR.

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