SBFC Finance Limited reported robust growth for Q4 FY26, with Assets Under Management (AUM) reaching INR 11,270 crore, representing a 29% year-on-year increase. The company achieved a quarterly profit of INR 123 crore, up 30% year-on-year, driven by strong performance in its MSME and gold loan segments. With a capital adequacy ratio of 32.8%, the firm remains well-positioned to continue its expansion strategy across small-town India while maintaining strict asset quality.
Quarterly Financial Highlights
For the quarter ended March 31, 2026, SBFC Finance delivered strong financial results. The company’s total AUM grew by 29% year-on-year and 8% quarter-on-quarter, totaling INR 11,270 crore. Profit After Tax (PAT) for the quarter stood at INR 123 crore, contributing to a full-year profit of INR 451 crore, marking a 31% growth over the previous year. The company’s spreads also improved to 9.09%, supported by an 83 basis point reduction in the cost of borrowing.
Segmental Performance and Asset Quality
The company’s loan portfolio remains heavily focused on secured lending. MSME loans account for 79% of AUM, growing 22% year-on-year. The gold loan segment experienced significant momentum, growing 63% year-on-year to INR 2,374 crore, now representing 21% of the total book. Asset quality metrics showed improvement, with GNPA reducing to 2.61%. The credit cost for the quarter was reported at 1.38%, reflecting the company’s disciplined approach to risk management.
Strategic Growth and Operational Focus
SBFC Finance expanded its physical footprint significantly in FY26, adding 46 new branches to reach a total network of 251 branches. Management plans to stabilize the network at approximately 275 branches in the upcoming year to consolidate performance. The company maintains a direct sourcing model, leveraging digital tools for file movement and customer service to drive efficiency. Despite a competitive environment, management emphasized its commitment to long-term profitability by controlling operational expenses and deepening penetration in tier two and tier three markets.
Future Outlook
Looking ahead, the company remains cautiously optimistic. With a strong capital base and a CRAR of 32.8%, SBFC Finance is well-capitalized to support growth for the next two years. The management team expects to maintain its quarterly growth guidance of 5% to 7% and intends to keep the portfolio mix stable between MSME (75%) and Gold (25%), while continuing to focus on operational leverage and cost-to-income optimization.
Source: BSE
