SBI Cards and Payment Services (SBICARD) Q2 25/26 earnings summary

Executive summary

• India's economic growth remains robust, with FY 2026 GDP forecast revised up to 6.8% and strong domestic demand driven by GST reforms and festive spending.

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

• Launched new co-branded products with PhonePe, Flipkart, and IndiGo, supported by high-impact digital campaigns and a major festive campaign.

• 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 13% year-over-year, with net profit after tax at ₹444.77 crore, a 10% increase YoY.

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

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

• Cards in Force grew 10% YoY to 2.15 crore, with 936,000 new accounts added.

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

Outlook and guidance

• Credit cost is expected to decline and remain below 9% in the next two quarters.

• Cost-to-income ratio for FY 2026 is guided at 54-56%, likely at the higher end due to increased corporate spend.

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

• Account acquisition guidance remains 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.