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SBFC Finance
27-Jul-2025 | 08:30
AUM growth healthy at 30%, margins improve
SBFC Finance has posted 28% increase in the net profit to Rs 100.89 crore in the quarter ended June 2025 (Q1FY2026). The income from operation of SBFC Finance increased 31% to Rs 388.43 crore in Q1FY2026. Overall OPM has increased to 74.79% in Q1FY2026 from 73.43% in Q1FY2025, leading to 33% rise in operating profit to Rs 290.52 crore. Other income jumped to Rs 0.11 crore. Interest cost increased 33% to Rs 125.06 crore. Provisions surged 68% to Rs 24.83 crore. Depreciation moved up 34% to Rs 5.04 crore. PBT moved up 29% to Rs 135.70 crore. The effective tax rate rose to 25.7% in Q1FY2026 compared to 25.1% in Q1FY2025. Provision for tax was expense of Rs 34.81 crore, compared to Rs 26.41 crore. Profit after tax jumped 28% to Rs 100.89 crore.
Business highlights
The Asset under management of the company increased 30% to Rs 9351 crore end June 2025 over June 2024. The disbursements of the company surged 33% yoy to Rs 709 crore in Q1FY2026. The active loan accounts increased 23% on yoy basis to 1.76 lakh end June 2025. The share of secure MSME loan book in the overall asset under management was steady at 83% and gold loans at 17% end June 2025. The share of secured loan book was at 100% at end June 2025. The yield on loan book rose on sequential basis to 17.99%, while the cost of borrowing eased to 9.32% in Q1FY2025. The spreads improved to 8.67% in Q1FY2026. On asset quality front, the gross stage 3 asset book rose 4 bps qoq to 2.78% while the net stage 3 assets ratio moved up 6 bps qoq to 1.57% end June 2025. The provision coverage ratio was 44.4% and collection efficiency eased qoq to 97.24% from 97.74%. The capital adequacy ratio was strong at 34.3% end June 2025. The company has added 10 branches during Q1FY2026 raising the overall branch network to 215 branches end June 2025. The employee count has increased to 4503 employees end June 2025Financial performance FY2025
The income from operation of SBFC Finance increased 28% to Rs 1305.12 crore in FY2025. Overall OPM has increased to 74.12% in FY2025 from 71.26% in FY2024, leading to 33% rise in operating profit to Rs 967.30 crore. Other income declined 23% to Rs 0.99 crore. Interest cost increased 20% to Rs 419.24 crore. Provisions jumped 57% to Rs 73.72 crore. Depreciation moved up 25% to Rs 16.81 crore. PBT increased 45% to Rs 458.52 crore. The effective tax rate declined to 24.7% in FY2025 compared to 25.0% in FY2024. Provision for tax was expense of Rs 113.35 crore, compared to Rs 79.04 crore. Profit after tax jumped 46% to Rs 345.17 crore in FY25.| SBFC Finance: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Income from Operations | 388.43 | 297.49 | 31 | 1305.12 | 1018.54 | 28 |
| OPM (%) | 74.79 | 73.43 | ? | 74.12 | 71.26 | ? |
| OP | 290.52 | 218.45 | 33 | 967.30 | 725.86 | 33 |
| Other Income | 0.11 | 0.01 | 1000 | 0.99 | 1.28 | -23 |
| PBDIT | 290.63 | 218.46 | 33 | 968.29 | 727.14 | 33 |
| Interest (Net) | 125.06 | 94.76 | 32 | 419.24 | 350.64 | 20 |
| PBDT | 165.57 | 123.70 | 34 | 549.05 | 376.50 | 46 |
| Provisions | 24.83 | 14.81 | 68 | 73.72 | 47.03 | 57 |
| Depreciation / Amortization | 5.04 | 3.76 | 34 | 16.81 | 13.41 | 25 |
| PBT before EO | 135.70 | 105.13 | 29 | 458.52 | 316.06 | 45 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 135.70 | 105.13 | 29 | 458.52 | 316.06 | 45 |
| Tax Expenses | 34.81 | 26.41 | 32 | 113.35 | 79.04 | 43 |
| PAT | 100.89 | 78.72 | 28 | 345.17 | 237.02 | 46 |
| EPS * | 3.7 | 2.9 | ? | 3.2 | 2.2 | ? |
| Equity | 1088.1 | 1074.2 | ? | 1086.0 | 1071.9 | ? |
| Adj BV (Rs) | 29.0 | 25.7 | ? | 28.2 | 25.1 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit | ||||||
| Source: Capitaline Corporate Database | ||||||
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