SBFC Finance Reports Q1 FY27 Results, Showcasing 29% Y-o-Y Growth in Profit After Tax

SBFC Finance Reports Q1 FY27 Results, Showcasing 29% Y-o-Y Growth in Profit After Tax​

SBFC Finance Ltd. released its financial performance for the quarter ended June 30, 2026 (Q1 FY27), demonstrating strong revenue growth and robust asset quality metrics as it focuses on the secured MSME lending segment.

The company reported a profit after tax (PAT) of 130 crore in Q1 FY27, marking a 29% increase year-over-year (YoY). Total income stood at 492 crore for the quarter, up 8.2% compared to the previous quarter (QoQ) and showing 26.5% growth on a YoY basis.

Financial Highlights and Performance​

SBFC Finance maintained high growth in its loan book size while managing credit costs effectively. The company’s Assets Under Management (AUM) increased by 27% year-over-year, reaching 11,922 crore. Specifically, Secured MSME AUM saw a robust increase of 20%, standing at 9,271 crore. The volume of Secured MSME disbursements was reported at 7,700 crore, which represents an 11% decrease YoY.

The company operates through 256 branches across 18 states and two Union Territories, maintaining a pan-India presence in 201 cities. SBFC's business model is tailored to service underserved informal customers, with credit officers focusing on understanding income and cash flow at the family level during the lending process.

A detailed look at the company’s Q1 FY27 financial performance compared to previous periods is summarized below:

Asset Quality and Credit Risk Management​

The company maintains a focus on high-quality lending, with strong metrics reported across its loan book. Gross Non-Performing Assets (GNPA), defined as Stage 3 loans, stood at 2.66%, showing a decrease of 12 basis points (bps) YoY. The Net NPA was 1.55%, marking a reduction of 2 bps YoY.

The portfolio quality is supported by several key indicators:

• 93% of AUM is secured by self-occupied residential or commercial property.
• The Loan to Value (LTV) ratio stands at 42.7%.
• 100% of loans involve a co-borrower who is the spouse or parent.
• 96% of borrowers are women, either as borrowers or co-borrowers.

Credit indicators include:

Balance Sheet and Capital Adequacy​

As of June 30, 2026, the company reported Total Assets of 13,011 crore, an increase from the 11,085 crore recorded in March 2026. Equity and Reserves stood at 3,874 crore. The firm's borrowings were reported at 8,858 crore.

The company’s capital adequacy metrics remain stable:

• Capital Adequacy Ratio (CRAR) is 31.95%.
• Cost of Borrowing was 8.42%, which reflects a decrease of 90 bps YoY.

Ownership Structure and Governance​

SBFC Finance Ltd. maintains a diversified structure in its shareholding base. Clermont Group holds the largest stake at 52.31% of the shares, followed by SBI Mutual Fund with 8.10%. Aditya Birla Sun Life has invested 5.14%, while Amansa Capital holds 4.00% and Malabar Funds hold 3.20%. Management and Employees collectively hold 6.9% of the diluted share capital (Non-diluted status is 13.68%).

The Board includes Neeraj Swaroop as Chairman, who was formerly CEO of SCB Singapore. Mahesh Dayani serves as MD & CEO, with Ganesh Vaidya serving as Chief Financial Officer and Rajiv Thakker holding the position of Chief Risk Officer at SBFC.

SBFC Stock Price Movement​

Shares in SBFC Finance Limited closed strong on Friday, rising by 1.91% to settle at ₹92.18. The stock traded during the session with a volume of 696,691 shares.