SBFC Finance Limited submitted an investor presentation to the National Stock Exchange of India Limited and BSE Limited in connection with its financial results for the quarter ended 30th June 2026 (Q1 FY27). The presentation was intended for reference during an earnings conference call scheduled for 25th July 2026 at 05:00 PM IST.

Executive Summary – Q1 FY27 Performance

  • Profit after tax grew 29% year-over-year (YoY) and 6% quarter-over-quarter (QoQ) to ₹130 crore.
  • Assets Under Management (AUM) grew 27% YoY and 6% QoQ to ₹11,922 crore.
  • Credit quality metrics: Gross NPA stood at 2.66% with a Provision Coverage Ratio (PCR) of 42%.
  • Operating efficiency improved, with the cost-to-AUM ratio declining by 30 basis points YoY to 4.29%.
  • Return ratios: Return on Assets (RoA) was 4.53% and Return on Equity (RoE) was 14.73% for the quarter.

Business Overview & Strategy

  • The company focuses on providing secured MSME loans to small businesses, primarily in the ₹5 lakh to ₹30 lakh ticket size segment.
  • It estimates its target market size at ₹4.6 lakh crore, growing at a 23% CAGR (based on CRIF data as of March 2026).
  • The company has a pan-India footprint with a presence in 18 states and 2 union territories, covering 201 cities through 256 branches.
  • The management team is described as experienced and cycle-tested, with strong corporate governance backed by marquee investors.

Shareholding Pattern (as of 30th June 2026)

  • Promoter Clermont Group holds a 52.31% stake.
  • Other major shareholders include SBI Mutual Fund (8.10%), Aditya Birla Sun Life (5.14%), Amansa Capital (4.00%), and Malabar Funds (3.20%).
  • Management and employees hold 6.9% of the diluted share capital.

Credit Underwriting & Quality

  • The credit underwriting framework is tailored for underserved, informal customers with a deep understanding of local markets.
  • Over 89% of the secured MSME AUM is from customers with a CIBIL score above 700.
  • The loan book is granular with no single industry exposure exceeding 15% of the portfolio.
  • Net NPA stood at 1.55% for Q1 FY27, compared to 1.54% in Q4 FY26 and 1.57% in Q1 FY26.

Expected Credit Loss (ECL) Provisions (as of 30th June 2026)

  • Total Gross Loans Outstanding: ₹10,683 crore
  • Total ECL Provision: ₹204 crore (1.91% of gross loans)
  • Stage-wise breakdown:
  • Stage 1: Gross ₹10,054 cr, Provision ₹28 cr (0.27%)
  • Stage 2: Gross ₹345 cr, Provision ₹56 cr (16.28%)
  • Stage 3: Gross ₹284 cr, Provision ₹120 cr (42.22%)

Financial Performance – Profit & Loss Statement (Q1 FY27)

  • Total Income: ₹492 crore (up 26.5% YoY, 8.2% QoQ)
  • Interest Income on Loans: ₹454 crore (up 29.7% YoY, 9.5% QoQ)
  • Finance Cost: ₹153 crore
  • Operating Expenses: ₹123 crore
  • Pre-Provisioning Operating Profit: ₹216 crore (up 34.4% YoY, 7.3% QoQ)
  • Credit Cost: ₹42 crore
  • Tax Expense: ₹44 crore
  • Basic EPS: ₹1.18 (not annualized)
  • Diluted EPS: ₹1.17 (not annualized)

Key Financial Ratios

  • Net Interest Margin / Average AUM: 10.68% (Q1 FY27) vs 10.24% (Q4 FY26)
  • Borrowing Cost / Average Borrowings: 8.42% (Q1 FY27) vs 8.52% (Q4 FY26)
  • Spread: 9.48% (Q1 FY27) vs 9.09% (Q4 FY26)
  • Leverage (Avg AUM / Avg Tangible Equity): 3.25x

Balance Sheet (as of 30th June 2026)

  • Total Assets: ₹13,011 crore
  • Loan Assets (Net): ₹10,479 crore
  • Borrowings: ₹8,858 crore
  • Equity & Reserves: ₹3,874 crore

Other Business Highlights

  • The company engages in co-origination partnerships, which validate its profitable origination strategy.
  • Collections are 99% digital, handled by in-house, on-ground teams.

The presentation includes standard safe harbor statements noting that it is for informational purposes only and contains forward-looking statements subject to risks and uncertainties.