SBFC Finance Limited reported robust growth for the financial year ended March 31, 2026, with profit after tax rising 31% year-on-year to ₹451 crore. The company’s Asset Under Management (AUM) expanded by 29% to reach ₹11,270 crore. Supported by improved operating efficiency and a strong credit profile, the lender continues to scale its pan-India presence through a network of 251 branches, reinforcing its commitment to serving the MSME sector.
Robust Annual Financial Growth
For the fiscal year FY26, SBFC Finance demonstrated strong operational and financial performance. The company achieved a Profit After Tax (PAT) of ₹451 crore, marking a significant 31% increase over the previous year. This growth was driven by an expanding asset base, with total AUM reaching ₹11,270 crore, representing a 29% year-on-year rise. The company also improved its operating efficiency, successfully reducing the Cost-to-AUM ratio to 4.19% from 4.65% in the prior year.
Quarterly Performance Highlights
In the final quarter (Q4 FY26), SBFC Finance maintained consistent momentum with a PAT of ₹123 crore, reflecting a 30% year-on-year growth. The quarterly AUM grew by 8% compared to the previous quarter. The company reported a Gross NPA of 2.61%, showcasing stable asset quality. Profitability metrics remained strong with a Return on Assets (RoAAUM) of 4.57% and an exit Return on Equity (RoATE) of 14.48% for the quarter.
Strategic Focus and Market Presence
SBFC Finance continues to capitalize on the massive ₹4 lakh crore market opportunity in the ₹5 lakh to ₹30 lakh MSME loan segment. With a diversified pan-India footprint spanning 18 states and 2 Union Territories, the company operates 251 branches. The management’s focus on a secured lending model, where 94% of AUM is backed by self-occupied residential or commercial property, remains a cornerstone of its risk management strategy. Furthermore, the company maintains a high-quality borrower base, with over 89% of its AUM coming from customers holding a CIBIL score above 700.
Digital Integration and Operational Excellence
Technology continues to be a key driver in reducing friction within the lending lifecycle. The company has implemented a digital-first approach, achieving 83% e-Sign penetration for MSME loans and facilitating 95% of documents being sent digitally. These efficiencies, coupled with an in-house, on-ground collection model that ensures 99% of payments are collected digitally, position SBFC Finance for continued scalable growth while maintaining strong corporate governance.
Source: BSE
