SBFC Finance reported a 30% year-over-year increase in Profit After Tax (PAT) for Q2 FY26, reaching ₹109 crore. The company’s Assets Under Management (AUM) grew by 29% year-over-year to ₹9,938 crore. The Gross NPA stood at 2.77% with a Provision Coverage Ratio (PCR) of 46.17%. SBFC achieved an AUM of ₹10,000 crore in October 2025.
Financial Performance Highlights
SBFC Finance showcased strong financial results for the second quarter of fiscal year 2026. Key performance indicators reveal significant growth and improved efficiency:
- Profitability: Profit after tax increased by 30% year-over-year, reaching ₹109 crore for the quarter.
- Assets Under Management (AUM): AUM grew by 29% year-over-year to ₹9,938 crore. The company achieved an AUM of ₹10,000 crore during October 2025.
- Credit Quality: Gross Non-Performing Assets (NPA) stood at 2.77% with a Provision Coverage Ratio (PCR) of 46.17%.
- Operating Efficiency: The cost-to-AUM ratio improved to 4.40%.
- Return Ratios: The company reported a Return on Assets (RoA) of 4.56% and a Return on Equity (RoE) of 14.09%.
Key Financial Metrics – Q2 FY26
A snapshot of the key numbers for the quarter:
- Asset Under Management: ₹9,938 crore (Up 29% YoY, 6% QoQ)
- Disbursement: ₹815 crore (Up 21% YoY, 1% QoQ)
- Gross NPA: 2.77% (Up 8 bps YoY, Down 1 bp QoQ)
- PAT: ₹109 crore (Up 30% YoY, Up 8% QoQ)
Company Overview and Strategy
SBFC Finance is focused on offering secured MSME loans, with loan sizes ranging from ₹5 lakh to ₹30 lakh. The company operates with a pan-India network, including 220 branches across 16 states and 2 Union Territories. Its credit underwriting process is designed specifically for the MSME segment, employing a risk management framework tailored to these businesses.
Borrowing and Liabilities
SBFC Finance has diversified borrowing sources, including bank loans, NCDs, and co-origination agreements. The company also utilizes external commercial borrowings (ECB) and securitization to manage its liabilities.
Source: BSE