SBFC Finance Q1 FY27 Results (NSE: SBFC)
Signal: Earnings grew
The read
The growth engine remains intact, with revenue up 26.5% YoY and PAT up 29.0%, but the earnings-quality watchpoint is the 67.9% YoY increase in impairment charges versus only modest improvement in GNPA from 2.78% to 2.66%; leverage also rose to 2.29x from 1.73x.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹491.46 Cr | +26.5% | +8.2% |
| Net profit | ₹130.12 Cr | +29.0% | |
| EPS | ₹1.18 | +26.9% | |
| EBIT margin | 0% |
P&L walk
Revenue increased 26.5% YoY and 8.2% sequentially, while PAT grew 29.0% YoY; higher finance costs and impairment charges absorbed part of the operating growth benefit.
Key positives
- Revenue reached ₹4,914.64 million, +26.5% YoY and +8.2% QoQ, with interest income up 29.5% YoY to ₹4,596.07 million.
- PAT increased 29.0% YoY to ₹1,301.23 million despite impairment charges rising 67.9% YoY, indicating continued pre-provision earnings growth.
- Liquidity coverage ratio improved to 216.73% from 171.81% YoY, while security cover remained strong at 1.22x exclusive and 1.20x pari-passu.
Key concerns
- Impairment on financial instruments rose 67.9% YoY to ₹416.87 million, materially faster than revenue growth of 26.5%.
- Debt-equity increased to 2.29x from 1.73x YoY, while CAR declined to 31.95% from 34.28%.
- Provision coverage fell to 42.22% from 44.38% YoY, despite GNPA remaining elevated at 2.66%.
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