SBFC Finance

Slow disbursements growth

SBFC Finance has posted 30% increase in the net profit to Rs 122.77 crore in the quarter ended March 2026 (Q4FY2026). The income from operation of SBFC Finance increased 26% to Rs 454.04 crore in Q4FY2026. Overall OPM has increased to 77.86% in Q4FY2026 from 74.49% in Q4FY2025, leading to 32% rise in operating profit to Rs 353.50 crore in Q4FY2026.

Other income declined to Rs 0.11 crore from Rs 0.60 crore in Q4FY25. Interest cost increased 25% to Rs 147.43 crore. Provisions surged 78% to Rs 37.04 crore. Depreciation moved up 10% to Rs 5.01 crore. PBT moved up 30% to Rs 164.13 crore.

The effective tax rate rose to 25.2% in Q4FY2026 compared to 25.0% in Q4FY2025. Provision for tax was expense of Rs 41.36 crore, compared to Rs 31.40 crore. Profit after tax jumped 30% to Rs 122.77 crore.

Book value of the company stood at Rs 33.7 per share at end March 2026. The adjusted book value increased to Rs 32.1 per share at end March 2026.

Business highlights

The Asset under management of the company increased 29% to Rs 11270 crore end March 2026 over March 2025.

The disbursements of the company rose 2% yoy to Rs 785 crore in Q4FY2026. The active loan accounts increased 18% on yoy basis to 2.03 lakh end March 2026.

The share of secure MSME loan book in the overall asset under management was declined to 79% and gold loans increased to 21% end March 2026 from 83% and 17% at end March 2025.

The share of secured loan book was at 100% at end March 2026.

The yield on loan book declined on sequential basis to 17.61%, while the cost of borrowing eased to 8.52% in Q4FY2025. The spreads rose sequentially at 9.09% in Q4FY2026.

On asset quality front, the gross stage 3 asset book declined 10 bps qoq to 2.61% while the net stage 3 assets ratio rose 6 bps qoq to 1.54% end March 2026.

The provision coverage ratio eased to 41.6% at end March 2026 from 46.2% at end December 2025 and 45.69% at end March 2025.

The capital adequacy ratio was strong at 32.84% end March 2026.

The company has added 21 branches during Q4FY2026 raising the overall branch network to 251 branches end March 2026.

The employee count has increased to 5025 employees end March 2026

Financial performance FY2026

The income from operation of SBFC Finance increased 29% to Rs 1678.82 crore in FY2026.  Overall OPM has increased to 76.59% in FY2026 from 74.12% in FY2025, leading to 33% rise in operating profit to Rs 1285.88 crore. 

Other income declined 31% to Rs 0.68 crore. Interest cost increased 28% to Rs 537.37 crore.  Depreciation moved up 20% to Rs 20.11 crore. Provisions increased 70% to Rs 125.49 crore.  PBT moved up 32% to Rs 603.59 crore. 

The effective tax rate increased to 25.3% in FY2026 compared to 24.7% in FY2025. Provision for tax was expense of Rs 152.76 crore, compared to Rs 113.35 crore. Profit after tax rose 31% to Rs 450.83 crore. 

SBFC Finance: Results
Particulars	2603 (3)	2503 (3)	Var %	2603 (12)	2503 (12)	Var %
Income from Operations	454.04	360.58	26	1678.82	1305.12	29
OPM (%)	77.86	74.49		76.59	74.12
OP	353.50	268.61	32	1285.88	967.30	33
Other Income	0.11	0.60	-82	0.68	0.99	-31
PBDIT	353.61	269.21	31	1286.56	968.29	33
Interest (Net)	147.43	117.99	25	537.37	419.24	28
PBDT	206.18	151.22	36	749.19	549.05	36
Provisions	37.04	20.86	78	125.49	73.72	70
Depreciation / Amortization	5.01	4.56	10	20.11	16.81	20
PBT	164.13	125.80	30	603.59	458.52	32
Tax Expenses	41.36	31.40	32	152.76	113.35	35
PAT	122.77	94.40	30	450.83	345.17	31
EPS *	4.4	3.5		4.1	3.2
Equity	1105.7	1086.0		1105.7	1086.0
Adj BV (Rs)	32.1	28.2		32.1	28.2
* 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