SBI Card (SBICARD) Q2 25/26 earnings summary

Executive summary

• Strong growth in India's digital payments and credit card market, with transaction volumes and values expected to triple by FY 2030, and credit cards in circulation projected to nearly double by then.

• Achieved robust growth in spends, new accounts, and cards-in-force in Q2 FY26, with profitability improving year-over-year and quarter-over-quarter.

• Launched three major co-branded credit cards (Flipkart, PhonePe, IndiGo) and a nationwide festive campaign, driving customer engagement and acquisition.

• Received multiple industry awards for compliance, innovation, and digital excellence, including the CII National AI Award for the revamped mobile app.

• Unaudited financial results for the quarter and half year ended September 30, 2025, were approved by the Board on October 24, 2025.

Financial highlights

• Total income for Q2 FY26 was ₹5,136.48 crore, up from ₹4,421.04 crore in Q2 FY25, with revenue from operations rising 13% YoY and profit after tax reaching ₹444.77 crore, a 10% YoY increase.

• Total spend hit a record ₹17,063 crore, up 31% YoY; retail spend grew 17% YoY to ₹8,961.1 crore.

• Online spend accounted for 62.5% of total retail spend in H1 FY26; corporate spend reached ₹1,745.2 crore, with strong growth and diversification.

• Receivables grew 8% YoY and 6% QoQ to ₹59,845 crore.

• Earnings per share (basic and diluted) for Q2 FY26 were ₹4.67, up from ₹4.25 in Q2 FY25.

Outlook and guidance

• Credit cost expected to decline further, with guidance for gross credit cost below 9% in coming quarters.

• Cost-to-income ratio for FY 2026 expected at the higher end of 54-56% due to increased corporate spend.

• Net interest margin (NIM) expected to be maintained at current levels.

• Cards acquisition guidance maintained at 0.9–1 million per quarter, with continued focus on quality and profitability.

• Management exercised due diligence to ensure a true and fair view and made additional provisions based on historical festive spending patterns.