SBFC Finance Limited has released its financial results for the first quarter of FY27, reporting a 27% year-on-year growth in total Assets Under Management (AUM) to INR 11,922 crores. The company’s profit after tax (PAT) saw a significant jump of 29% year-on-year to INR 130 crores. Key operational metrics including yields, cost of borrowing, and NIMs also showed positive movement, alongside a stable asset quality.
SBFC Finance Reports Strong Q1 FY27 Performance
SBFC Finance Limited announced its financial results for the quarter ended June 30, 2026 (Q1 FY27), showcasing robust growth across key performance indicators. The company’s total Assets Under Management (AUM) reached INR 11,922 crores, marking a substantial 27% increase year-on-year and a 6% rise quarter-on-quarter. The MSME segment AUM stood at INR 9,271 crores, with disbursements growing by 3% sequentially to INR 809 crores. The loan against gold segment also saw a healthy 11% growth quarter-on-quarter.
Profitability and Financial Highlights
Profit after tax (PAT) for the quarter was reported at INR 130 crores, an impressive increase of 29% year-on-year and 6% sequentially. The company reported an improved Net Interest Margin (NIM) of 10.6%, driven by a lower cost of borrowing at 8.42% (down 90 bps year-on-year) and improved asset pricing. Operating expenses (opex) were managed at 4.29%, a decrease of 30 basis points year-on-year.
Asset Quality and Outlook
In terms of asset quality, the Gross Non-Performing Assets (GNPA) ratio was 2.66%, a reduction of 12 basis points year-on-year. The company maintained a strong capital adequacy ratio of 32%. Looking ahead, SBFC Finance expects its cost of borrowing to stabilize and maintains its guidance for a 25-basis point reduction in operational expenses for the full year. The company is focused on maintaining steady momentum and managing risks effectively, as it navigates the evolving market landscape.
Source: BSE
