SBFC Finance (SBFC) Q3 25/26 earnings summary

Executive summary

• AUM reached ₹10,478 crore as of December 2025, up 29% YoY and 5% QoQ, with nearly all loans secured by property or gold.

• PAT for the quarter was ₹118 crore, a 34% YoY and 8% QoQ increase.

• Gross NPA stood at 2.71% with a provision coverage ratio of 46.21%.

• Cost-to-AUM ratio improved to 3.93%, and return ratios were strong with ROA at 4.67% and ROE at 14.56%.

• Leadership transition announced: MD moves to non-executive vice chairman, with internal succession planned.

Financial highlights

• Total income for Q3 FY26 was ₹426 crore, up 27.8% YoY; PAT was ₹118 crore, up 34% YoY.

• Yield for the quarter was 17.78%, down 23 bps QoQ and 3 bps YoY; spread stable at 9.04% QoQ, up 54 bps YoY.

• Cost of borrowing at 8.74%, down 22 bps QoQ and 57 bps YoY.

• Operating expenses to AAUM ratio improved to 3.93% in Q3 FY26.

• For 9M FY26, total income reached ₹1,225 crore (up 29.7% YoY), and PAT was ₹328 crore (up 30.8% YoY).

Outlook and guidance

• AUM growth guidance maintained at 5%-7% QoQ for FY26.

• Operating cost reduction of 50 bps targeted for the year, with further efficiency improvements planned.

• Credit cost guidance for next quarter is 5-10 bps variation; full-year guidance to be provided in April.

• No deviation in use of NCD proceeds; funds fully utilized for on-lending to secured MSMEs and gold loans.

• The MSME financing market (₹5–30 lakh) is estimated at ₹4 lakh crore, growing at a 24% CAGR.