SBI Cards Q2 FY27 Results (NSE: SBICARD)
Signal: Earnings grew
The read
The trajectory improved sharply at the bottom line, with Q2 PAT of ₹777.60 crore up 74.83% YoY, but the quality of acceleration remains credit-cost-led: impairment fell 36.63% while total income grew only 3.22%; the ₹30 crore additional provision for macro uncertainty and negative H1 operating cash flow of ₹1,014.27 crore keep the recovery dependent on asset-quality normalization.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,301.67 Cr | 3.22% | 1.85% |
| Net profit | ₹777.6 Cr | 74.83% | |
| EPS | ₹8.17 | 74.95% | |
| EBIT margin | 0% |
P&L walk
Total income increased 3.22% YoY to ₹5,301.67 crore, but PAT rose 74.83% to ₹777.60 crore because impairment fell 36.63% to ₹819.37 crore; the earnings acceleration is therefore provision-led rather than operating-revenue-led.
Key positives
- PAT reached ₹777.60 crore, up 74.83% YoY, as impairment on financial instruments fell 36.63% to ₹819.37 crore.
- Gross NPA improved to 1.90% and net NPA to 0.77% at September 30, 2026, versus 2.41% and 4.04% respectively at March 31, 2026.
- Fees and commission income grew 7.45% YoY to ₹2,434.02 crore, faster than total income growth of 3.22%.
- Basic EPS rose 74.95% to ₹8.17, broadly matching PAT growth and showing no material dilution impact.
Key concerns
- Total income grew only 3.22% YoY to ₹5,301.67 crore, while loans declined 2.29% YoY to ₹56,532.02 crore.
- Operating and other expenses rose 3.95% YoY to ₹2,101.86 crore, faster than total-income growth.
- H1 operating cash flow was negative at ₹1,014.27 crore despite H1 PAT of ₹1,442.06 crore.
- Impairment-driven PAT growth remains vulnerable to normalization in credit costs after impairment fell 36.63% YoY.
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