SBFC Finance (SBFC) Q4 24/25 earnings summary

Executive summary

• Achieved 28% year-over-year AUM growth to ₹8,747 crore, with 100% secured by property and gold, and MSME AUM forming 83% of total.

• PAT for FY25 was ₹345 crore, up 46% YoY; Q4 FY25 PAT at ₹94 crore, up 29% YoY and 7% QoQ.

• Gross NPA stood at 2.74% and cost of credit remained at 1%, indicating resilient credit quality.

• Cost-to-AUM ratio improved to 4.65% from 5.34% last year, showing enhanced operating efficiency.

• Audited standalone and consolidated financial results for FY25 were approved, with unmodified audit opinions from statutory auditors.

Financial highlights

• Total income for FY25 rose 28.1% YoY to ₹1,306 crore; pre-provisioning operating profit up 46.6% to ₹532 crore.

• Yield and spread stable at 17.88% and 8.53% for Q4; borrowing cost reduced by 5 bps YoY to 9.33%.

• OPEX flat QoQ at 4.62%, improved 39 bps YoY; cost/income ratio improved to 39.98% in FY25 from 45.74% in FY24.

• Basic EPS for FY25 was ₹3.20, up from ₹2.35 in FY24.

• Standalone net profit for FY25 was ₹3,451.68 million, up from ₹2,370.21 million in FY24.

Outlook and guidance

• Targeting 5%-7% QoQ AUM growth; plan to open 20-25 new branches in FY26.

• OPEX to be reduced by 50 bps YoY; credit cost expected to remain around 1% ±10 bps.

• Focus remains on secured MSME lending in the ₹5–30 lakh segment, a market growing at 24% CAGR.

• Sufficient security cover for secured listed NCDs maintained at 1.10x asset cover.