SBFC Q1: standalone PAT +29% YoY to ₹130 Cr, NPM firm as loan-book growth holds

SBFC Finance opened FY27 with standalone net profit of ₹130.1 Cr for Q1 (quarter ended June 30, 2026), up 29.0% YoY from ₹100.9 Cr and 6.0% QoQ 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), reflecting the AUM-led compounding the NBFC has guided toward. Net profit margin came in at 26.47% — 50bps wider YoY (25.97%) but 56bps softer than the seasonally strong Q4 print of 27.03%, a sequential dip rather than a trend break. There are no one-off items on either side, so the reported and underlying growth are the same ~29%; this is a clean, steady-growth quarter, not an accounting-flattered one.

The one line running ahead of income is credit cost: impairment on financial instruments jumped 68% YoY to ₹41.7 Cr (from ₹24.8 Cr) and 12.6% QoQ, outpacing the 26.5% topline. Headline asset quality still improved YoY — GNPA 2.66% vs 2.78% a year ago and NNPA 1.55% vs 1.57% — but ticked up 5bps sequentially from 2.61%, with provision coverage at 42.2%. Finance costs grew 21.9% YoY to ₹152.5 Cr, slower than income, aiding operating leverage; employee cost rose 26.4% to ₹88.9 Cr on continued branch expansion. Against management's April guidance of 5-7% quarterly AUM growth, stable ~9% spreads and range-bound credit costs, the growth and spread objectives look on track (interest income +8.8% QoQ), but provisioning is the one area to watch versus the 'range-bound' framing — likely growth-driven ECL on a larger book rather than fresh stress, given the YoY GNPA improvement.

The stock went into the print at ₹92.25, up 0.3% 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.

No brokerage consensus for this specific quarter was retrievable, so the print cannot be scored against a street number. The result is the first signed off by newly appointed CFO Sanket Agrawal (effective July 15, 2026), alongside continuity from MD & CEO Mahesh Dayani. Capital position remains strong — CRAR 31.95% and net worth ₹3,873 Cr — leaving ample headroom to fund the branch-led AUM expansion the company is pursuing. EPS rose to ₹1.18 (basic) from ₹0.93 a year ago.