SBI Cards and Payment Services (SBICARD) Q1 25/26 earnings summary

Executive summary

• Achieved 12% year-over-year revenue growth in Q1 FY26, driven by higher interest income and fees.

• Profit after tax for Q1 FY26 was ₹555.96 crore, down 6% year-over-year but up 4% sequentially.

• Card base grew 10% year-over-year to 2.12 crore, with 873,000 new accounts added in the quarter.

• Market share in card spends increased to 16.6% from 15.9% year-over-year, with dominant market share in cards-in-force and spends.

• Strategic focus on premium, co-branded cards, digital onboarding, and tier 2/3 market expansion.

Financial highlights

• Total income for Q1 FY26 was ₹5,035.39 crore, up from ₹4,831.74 crore in Q4 FY25 and ₹4,482.59 crore in Q1 FY25.

• Profit after tax was ₹555.96 crore, compared to ₹534.18 crore in the previous quarter and ₹594.45 crore year-over-year.

• Receivables grew 7% year-over-year to ₹56,607 crore.

• Net Interest Margin (NIM) improved to 11.2% year-over-year.

• Cost to income ratio improved to 50.3%, down 108 bps sequentially.

Outlook and guidance

• Receivables growth guidance revised to 10–12% for FY26, down from earlier 12–14%.

• Credit cost expected to remain range-bound between Q4 FY25 and Q1 FY26 levels.

• Cost of funds anticipated to decline further in Q2 due to repo rate cuts and borrowing mix changes.

• No immediate expectation for ROE to return to mid-20% range.

• Management highlighted ongoing growth in retail and corporate spends, with a focus on digital innovation and responsible customer experience.