SBFC Finance Q1 FY27 Results (NSE: SBFC)
Signal: Earnings grew
The read
Revenue grew 26.5% YoY to ₹491.57 Cr, with PAT up 29.0% to ₹130.12 Cr, while asset quality improved (GNPA 2.66% vs 2.78% YoY) and CRAR remained strong at 31.95%. The quarter saw higher credit cost (8.48% of income vs 6.39% YoY) but operating efficiency improved (cost-to-income down 141bps). Overall, steady growth with slight margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹491.57 Cr | 26.5% | 8.2% |
| EBIT | ₹326.62 Cr | 25.2% | |
| Net profit | ₹130.12 Cr | 29.0% | |
| EPS | ₹1.18 | 26.9% | |
| EBIT margin | 0% |
P&L walk
Revenue grew 26.5% YoY, PAT grew 29.0% — NII expanded 33.6% YoY on strong interest income growth, while credit cost increased 209bps YoY. Cost-to-income improved 141bps YoY, and asset quality held steady.
Key positives
- Revenue growth of 26.5% YoY to ₹491.57 Cr, driven by 29.5% interest income growth.
- PAT growth of 29.0% YoY to ₹130.12 Cr, in line with revenue growth.
- GNPA improved from 2.78% to 2.66% YoY, indicating stable asset quality.
- Cost-to-income ratio improved 141bps YoY to 25.08%, reflecting operating leverage.
Key concerns
- Credit cost increased 209bps YoY to 8.48% of total income, reflecting higher provisions on financial instruments.
- EPS growth (26.9%) lagged PAT growth (29.0%) due to dilution from ESOP share issuance.
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