SBFC Finance Q2 FY27: standalone PAT +27% YoY to ₹138.9 Cr as margin slips to 25.4%
PAT +27.3% YoY · revenue +33% · margins compressing
₹546.39 Cr
+33% YoY
₹138.87 Cr
+27.3% YoY
25.4%
-1.2pp YoY
₹1.25
SBFC Finance's standalone total income for the quarter ended September 30, 2026 rose 33.0% YoY to ₹546.7 Cr (from ₹410.8 Cr) and 11.2% QoQ (from ₹491.5 Cr), while standalone PAT grew 27.3% YoY to ₹138.9 Cr (from ₹109.1 Cr) and 6.7% QoQ (from ₹130.1 Cr); basic EPS came in at ₹1.25 against ₹1.00 a year ago and ₹1.18 last quarter. There are no exceptional items on either side of the comparison, so these are clean, unadjusted growth rates.
Q2 FY-2027 vs prior quarters
Net profit margin eased to 25.40% from 26.55% a year ago and 26.47% in Q1 FY27 (per the company's own Annexure I ratio disclosure), so profit growth trailed revenue growth rather than tracking it — this is a volume-led print, not a margin-led one. Finance costs rose 52% YoY to ₹196.0 Cr and impairment on financial instruments rose 34% YoY to ₹41.4 Cr, both broadly in step with faster balance-sheet growth: debt-equity climbed to 2.31x from 1.80x a year ago as borrowings (₹8,412 Cr, excluding debt securities) funded the expansion, and CRAR correspondingly eased to 31.27% from 34.05% YoY (still well above the regulatory floor). Asset quality held broadly steady — GNPA 2.64% versus 2.77% a year ago, NNPA 1.54% versus 1.51% — but provision coverage slipped to 42.24% from 46.17% YoY, a gap worth tracking as the book scales.
The stock went into the print at ₹80.56, down 10.9% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.
AUM 5-7% quarterly (6% Q1 on track); spreads held above 9% (9.48% achieved); opex reduction 25 bps for FY27 (30 bps YoY to date); credit costs 1.4-1.5% range-bound; branch expansion 10-15 for FY27.
No quarter-specific Street consensus for this print turned up in search; the public estimates found reference full-year FY27 numbers (~₹5.00 consensus EPS per an S&P Global poll of analysts) rather than a Q2-specific preview, so vsStreet is left unmarked rather than guessed. Against management's own Q1 FY27 call framing — 5-7% quarterly AUM growth (6% achieved in Q1), spreads held above 9% (9.48% in Q1), and credit costs in a 1.4-1.5% range — this filing's standalone loan book (₹11,161 Cr, up ~13.8% over H1 FY27, implying a ~6-7%/quarter run-rate) tracks broadly in line with the growth guidance, but the statement itself discloses neither spreads nor opex/credit-cost ratios, so the rest of that guidance can't be verified from this document alone. During the quarter the company also sold stressed loans of ₹55.4 Cr principal (919 accounts) to ARCs for ₹36.0 Cr consideration, and raised ₹100 Cr via privately placed NCDs on September 18 that remained unutilised at quarter-end per the Reg 52(7) disclosure.
W1
Provision coverage ratio (42.24%, down from 46.17% a year ago) — watch whether it stabilizes or erodes further as the loan book scales.
W2
Debt-equity ratio (2.31x, up from 1.80x a year ago) — watch pace of further leveraging against any fresh capital raises.
W3
Loan book growth run-rate (~6-7%/quarter) against management's 5-7% quarterly AUM growth guidance reiterated on the Q1 FY27 call.
Standalone only — SBFC has no subsidiaries, so this filing carries no consolidated statement; figures converted from ₹ million to ₹ Crore (÷10); totalIncome and PAT tie out exactly to the reported sub-components; the filing's own Annexure I ratio table shows 'Operating margin' as NA, so margin commentary here relies on net profit margin (NPM), not OPM.
Informational and educational content only. Not investment advice.