SBFC Finance (SBFC) Q4 25/26 earnings summary

Executive summary

• Achieved 29% YoY AUM growth to ₹11,270 crore, with 8% QoQ growth; book remains nearly 100% secured by property or gold.

• PAT for FY26 was ₹451 crore, up 31% YoY; Q4 PAT at ₹123 crore, up 30% YoY.

• Branch network expanded by 46 in FY26, totaling 251 branches, exceeding guidance.

• Gross NPA improved to 2.61%, down 13 bps YoY, with a provision coverage ratio of 41.64%.

• Audited financial results for FY26 were approved with an unmodified audit opinion from statutory auditors.

Financial highlights

• Total income for FY26 grew 28.6% YoY to ₹16,795.02 million; Q4 income up 25.7% YoY to ₹454 crore.

• Net profit for FY26 stood at ₹4,508.33 million, compared to ₹3,451.68 million in FY25.

• MSME AUM at ₹8,873 crore (79% of AUM), up 22% YoY; gold AUM at ₹2,374 crore (21% of AUM), up 63% YoY.

• Yield for FY26 at 17.84%; cost of borrowing at 8.52% for Q4 and 8.85% for FY26.

• Basic EPS for FY26 at ₹4.13, up from ₹3.20 in FY25.

Outlook and guidance

• Guidance for 5%-7% quarterly growth maintained; full-year AUM growth of 29% achieved.

• Branch count to stabilize at 275 in FY27, with focus on consolidation.

• Portfolio mix expected to remain 75% MSME, 25% gold; gold share may rise with price and branch additions.

• Spreads expected to hold at current 9% level; OpEx to decline by 20-25 bps in FY27.

• Security cover for NCDs maintained at 1.10x as per regulatory requirements.