SBI Cards and Payment Services Limited reported a Profit After Tax (PAT) of ₹664 crore for the first quarter of fiscal year 2027, marking a significant 20% year-on-year growth. This performance was driven by improved credit costs and a 3% increase in total revenue to ₹5,205 crore. The company also highlighted strong growth in cards in force and retail spends, alongside a strategic focus on digital capabilities and customer-centric innovation.

SBI Cards Announces Q1 FY27 Earnings and Strategic Highlights

Financial Performance – Q1 FY27

SBI Cards and Payment Services Limited has announced its financial results for the first quarter of fiscal year 2027 (Q1 FY27), concluding on July 24, 2026. The company reported a Profit After Tax (PAT) of ₹664 crore, representing a substantial 20% increase year-on-year. This growth was primarily attributed to a significantly improved credit cost. Total revenue for the quarter stood at ₹5,205 crore, up 3% year-on-year.

Operating costs were higher year-on-year, mainly due to business growth. The average cost of funds remained stable at 6.6%, while the portfolio yield was 16%, resulting in a net interest margin of 10.8% for the quarter. The company’s capital adequacy ratio remained robust at 25.6%, with Return on Assets (ROA) at 3.9%, higher by 51 basis points year-on-year. Return on Equity (ROE) stood at 16.5%.

Business Growth and Market Position

SBI Cards maintained its strong market position, with 18.6% market share in cards in force and 19.5% share in card spends. Cards in force grew to approximately INR2.26 crore, a 7% year-on-year growth. The company added over 1 million new accounts in Q1 FY27, a 17% year-on-year increase. Net card additions were the highest in the industry for the quarter. Sourcing distribution remained balanced, with 47% from Banca and 53% from the open market.

Spend market share grew to 19.5%. Total spends reached an all-time high of INR1,18,475 crore, a 27% year-on-year growth. Retail spends increased by 14% year-on-year to INR94,033 crore, with good growth across various categories like consumer durables, furnishing, apparel, and jewellery. Online spend contributed 63% of total retail spend, and UPI on credit card usage grew by 13% quarter-on-quarter.

Asset Quality and Risk Management

Asset quality showed improvement, with gross credit cost decreasing by 116 basis points quarter-on-quarter to 6.5%. Gross NPA reduced by 36 basis points quarter-on-quarter to 2.04%. Net NPA is below 1% at 0.83%. The company has also completed the annual review of its ECL model, with an overlay of INR70 crore maintained for Stage 1 provisions due to geopolitical uncertainties.

Strategic Priorities and Outlook

SBI Cards’ strategy is focused on balancing growth with profitability, enhancing customer-centric innovation, and investing in digital capabilities. Key priorities include expanding reach in Tier 2 and Tier 3 cities, strengthening partnerships, and leveraging data analytics for enhanced customer insights. The company anticipates continued growth in the credit card industry over the next decade, supported by a favourable regulatory environment and its strategic initiatives.

The company is also focusing on growing its EMI portfolio, particularly with the upcoming festive season. While not providing specific guidance on numbers, it expects an uptick in EMI contributions. In terms of cost of funds, it is expected to remain stable, influenced by policy actions. Regarding spend growth, the focus remains on driving retail spends and leveraging RuPay cards and hyper-personalization initiatives.

The addressable market for credit cards is estimated to be substantial, with significant growth potential identified in both the bank’s customer base and the open market. The company is also exploring opportunities in rental business models, albeit with minimal current volume.

Investor Call Details

The transcript provided details the discussions during the Q1 FY27 Earnings Conference Call held on July 24, 2026. Management, including Ms. Salila Pande (MD & CEO), Mr. Girish Budhiraja (Chief Sales and Marketing Officer), Ms. Rashmi Mohanty (Chief Financial Officer), and Mr. Krishna Kant Bishnoi (Chief Risk Officer), participated in the call.

Source: BSE