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 Q4 was ₹123 crore, up 30% YoY and 4% QoQ; full-year PAT reached ₹451 crore, up 31% YoY.

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

• Audited financial results for the quarter and year ended March 31, 2026, were approved, with an unmodified audit opinion from statutory auditors.

• The company is a non-deposit taking NBFC classified under the 'Middle Layer' as per RBI regulations.

Financial highlights

• Total income for FY26 grew 28.6% YoY to ₹1,679 crore; pre-provisioning operating profit up 37% YoY to ₹729 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.

• Yields for Q4 at 17.61%; cost of borrowing at 8.52%, down 83 bps YoY; spreads at 9.09%, up 56 bps YoY.

• Basic EPS for FY26 was ₹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.

• The company maintains sufficient security cover for its secured listed non-convertible debentures, with a cover ratio of 1.10x as per regulatory requirements.