Event Type and Details:

  • This document is the transcript of the Q2 FY27 Earnings Conference Call for SBFC Finance Limited.
  • The call was held on Monday, 26th October 2026. A specific time was not mentioned in the transcript.
  • The stated purpose of the call was to discuss the company's financial and operational performance for the quarter and half year ended 30th September 2026.
  • The meeting was scheduled after the earnings announcement, as it is a post-results discussion.

Management Participants:

  • Mr. Aseem Dhru – Executive Vice Chairman
  • Mr. Mahesh Dayani – MD & CEO
  • Mr. Sanket Agrawal – Chief Financial Officer
  • Mr. Rajiv Thakker – Chief Risk Officer
  • The call was moderated by Mr. Gaurav Toshniwal from ICICI Securities Limited.

Availability of Materials:

  • The company confirmed that the transcript of the earnings call is being uploaded on its website at https://www.sbfc.com/investors under the section 'Investor Presentation – Call Transcripts'.
  • The transcript itself did not indicate that a presentation deck or recording would be made available, only the text transcript.

UPSI Statement:

  • The transcript did not contain an explicit statement confirming that no Unpublished Price Sensitive Information (UPSI) would be shared during the call.

Financial and Operational Highlights (as discussed on the call):

  • Profitability: PAT for Q2 FY27 stood at INR 139 crores, up 7% QoQ and 27% YoY. Return on Assets (ROA) was 4.6% and Return on Equity (ROE) was 15.04%.
  • AUM & Growth: Total Assets Under Management (AUM) was INR 12,592 crores, up 6% QoQ and 27% YoY. The company guides for 5-7% quarterly AUM growth going forward.
  • Segment-wise AUM: MSME AUM was INR 9,669 crores (77% of total), growing 18% YoY. Gold Loan AUM was INR 2,906 crores (23% of total).
  • Disbursements: MSME disbursements were INR 855 crores for the quarter, up 6% QoQ.
  • Asset Quality: Gross NPA (GNPA) stood at 2.64%, improving 13 bps YoY and 2 bps QoQ. Provision Coverage Ratio (PCR) was 42.24%.
  • Credit Cost: Credit cost for the quarter was 1.37%, down from 1.44% in the previous quarter (Q1 FY27).
  • Margins & Yield: Yield on assets held steady at 18%. The cost of funds was 8.41%, resulting in a spread of 9.6%.
  • Efficiency: Operating expense (Opex) ratio declined to 4.07%, down 22 bps QoQ. The company guides for a 25 bps reduction in opex for FY27.
  • Capital & Liquidity: The Capital Adequacy Ratio (CAR) was strong at 31%. The company maintained surplus liquidity of over INR 1,000 crores, with a Liquidity Coverage Ratio (LCR) of 194%.
  • Branch Network: The total branch count stood at 257 as of September 2026.
  • Strategy: The management emphasized a repositioning towards larger-ticket MSME segments (INR 10-25 lakh and INR 25+ lakh) and a cautious, guarded approach to gold loan growth amid rising competition.

Additional Notes Section

  • The document is a regulatory filing submitted to the BSE and NSE, with the transcript enclosed as an attachment.
  • No new financial data was disclosed in the announcement letter itself; all figures were part of the discussion within the enclosed transcript.
  • The transcript included a full Question & Answer session with analysts, covering topics such as gold loan LTV sensitivity, geographic asset quality (noting stabilization in Karnataka), collection staffing, and the impact of macro factors like El Nino.