SBFC Finance (SBFC) Q2 25/26 earnings summary

Executive summary

• Achieved AUM of INR 10,000 crore, up 29% year-over-year, surpassing the milestone in October 2025.

• PAT for the quarter at INR 109 crore, up 30% YoY, with continued growth in revenue and profitability.

• MSME AUM constitutes 82% of total, growing at 29% YoY and 6% QoQ.

• Branch network expanded to 220, with 5 new branches added in the quarter, serving 1,84,424 live customers.

• Focus remains on secured lending to MSMEs and gold loans, with minimal unsecured exposure.

Financial highlights

• Total income for Q2 FY26 was ₹411 crore, up 30.8% YoY; PAT for the quarter was ₹109 crore, up 30%.

• Yield for the quarter at 18.01%, spread at 9.05%, both improved YoY and QoQ.

• Cost of borrowing reduced to 8.96%, down 36 bps YoY and QoQ; opex to AAUM ratio improved to 4.40%.

• Basic EPS for Q2 FY26 was ₹1.00; pre-provisioning operating profit for Q2 FY26 increased 37.1% YoY to ₹177 crore.

• Net worth as of September 30, 2025, was ₹34,342.50 million.

Outlook and guidance

• Guidance maintained for 5-7% AUM growth QoQ and 25-30% annual growth.

• Credit cost expected to rise by 10-15 bps before peaking.

• ROE target remains at 15% as leverage increases moderately.

• Strong capital position and liquidity coverage ratio support future growth.

• No deviation in the use of NCD proceeds; funds used as intended for MSMEs and gold loans.