SBFC Finance Q1: PAT +29% YoY to ₹130 Cr, margin steady at 26.5% as credit costs climb

SBFC Finance reported standalone (its only basis — a single-segment NBFC) net profit of ₹130.1 Cr for Q1 FY27, up 29.0% YoY from ₹100.9 Cr and 6.0% sequentially from ₹122.8 Cr. Revenue from operations rose 26.5% YoY to ₹491.5 Cr, led by interest income of ₹459.6 Cr (+29.5% YoY), confirming that AUM-driven loan growth — not fee or trading income — remains the engine. Profit growth outpacing topline lifted the net profit margin to 26.47%, about 50 bps above the year-ago 25.97%, so the print is a clean YoY expansion rather than a one-off; there are no exceptional items on either side, so reported and adjusted growth are identical. The one soft spot is sequential, not annual. NPM slipped from 27.03% in Q4 FY26 to 26.47%, and the reason sits on the impairment line: credit costs jumped to ₹41.7 Cr, up 68% YoY and 13% QoQ, faster than the book grew. Gross NPA ticked up to 2.66% from 2.61% a quarter ago (though still better than 2.78% a year ago) and NNPA edged to 1.55%. Finance costs (₹152.5 Cr, +22% YoY) and employee expense (₹88.9 Cr, +26% YoY) rose broadly in step with the book, so the sequential margin give-back is a provisioning story, not an opex one. Against the last concall, management had guided for steady 5–7% quarterly AUM growth, stable ~9% spreads and range-bound credit costs; the ~8% sequential revenue rise is consistent with the growth guide, but the QoQ rise in impairment and the GNPA uptick are the first data points that sit slightly against the 'range-bound credit cost' framing and bear watching. No formal earnings guidance is on record and no Q1 FY27 street consensus could be sourced, so the beat/miss vs estimates is unknown. The result is also the first signed off by new CFO Sanket Agrawal, who took over on 15 July 2026 after Narayan Barasia's resignation. Capital and liquidity remain ample — CRAR 31.95%, LCR 216.7%, net worth ₹3,873 Cr, debt-equity 2.29x.