SBI Card (SBICARD) Q1 26/27 earnings summary

Executive summary

• Strong macroeconomic fundamentals and rapid digital transformation in India are driving robust growth in digital payments and credit card adoption, with 121 million credit cards now in circulation and industry growth expected to continue over the next decade.

• Q1 FY27 saw strong growth in new accounts, profitability, and business volumes, with over 1 million new accounts opened, a 17% YoY increase and 11% QoQ rise in new accounts, and 27% YoY growth in spends.

• Strategic focus on expanding premium customer base, strengthening product portfolio, and increasing reach in tier 2 and 3 cities, supported by investments in digital capabilities and data analytics.

• Recognized for innovation and customer experience, with notable awards and the BPCL co-brand card crossing 5 million cards.

• Unaudited financial results for the quarter ended June 30, 2026, were approved by the Board on July 24, 2026.

Financial highlights

• Net profit (PAT) for Q1 FY27 rose to INR 664 crore, up 20% YoY and 9% QoQ, driven by improved credit cost and business expansion.

• Total income for Q1 FY27 was INR 5,205 crore, a 3% YoY increase; total spends reached a record INR 118,475 crore, up 27% YoY.

• Retail spends grew 17% YoY and 11% QoQ to INR 94,033 crore; online spends contributed 63% of total retail spend.

• Cards in force grew 7% YoY to 2.26 crore; over 1 million new accounts added in Q1 FY27, a 17% YoY increase.

• Receivables increased to INR 58,269 crore, up 2% QoQ and 3% YoY.

Outlook and guidance

• Asset growth expected to pick up in H2 FY27, supported by higher new acquisitions and festive season demand.

• ROA guidance maintained at 4%-4.5% medium term; NIM expected to remain stable around current levels.

• Cost to income ratio for the year guided at 56%-58%, with higher costs anticipated during the festive season.

• Management expects continued growth in new accounts and spends, with a focus on digital initiatives and product innovation.

• ESG targets include increasing recycled plastic in cards to 25% by FY30 and reducing Scope 2 emissions by 50% by FY27.