SBFC Finance (SBFC) Q4 24/25 earnings summary

Executive summary

• Achieved 28% year-over-year AUM growth to INR 8,747 crores, with 100% secured by property and gold; PAT for FY25 was INR 345 crores, up 46% YoY.

• Gross NPA stood at 2.74% and cost of credit remained below 1%, indicating resilient credit quality.

• Cost-to-AUM ratio improved to 4.65% from 5.34% last year, showing better operating efficiency.

• MSME AUM forms 83% of total, growing 27% YoY; gold loans contributed 15%-17% of the book.

• Audited standalone and consolidated financial results for FY25 were approved, with unmodified audit opinions from statutory auditors.

Financial highlights

• Total income for FY25 was ₹1,306 crore, up 28.1% YoY; pre-provisioning operating profit grew 46.6% to ₹532 crore.

• PAT for Q4 FY25 was INR 94 crores, up 29% YoY and 7% QoQ; yield and spread stable at 17.88% and 8.53% for Q4.

• OPEX flat QoQ at 4.62%, improved 39 bps YoY; cost of borrowing for FY25 was 9.33%, down 5 bps YoY.

• Return on average AUM at 4.52%; return on average tangible equity at 13.14% for Q4; ROATE for FY25 was 12.72%.

• Standalone net profit for FY25 was ₹3,451.68 million, up from ₹2,370.21 million in FY24; net worth as of March 31, 2025, was ₹31,901.31 million.

Outlook and guidance

• Targeting 5%-7% QoQ AUM growth; plan to open 20-25 new branches in FY26; focus remains on secured MSME lending in the ₹5–30 lakh segment.

• OPEX to be reduced by 50 bps YoY; credit cost expected to remain around 1% ±10 bps.

• No reduction in cost of funds assumed; co-origination to remain 20% of incremental origination.

• Gold loans to stay at 15%-17% of AUM; cautious approach in states with regulatory or macro events.

• Sufficient security cover for secured listed NCDs maintained at 1.10x asset cover.