SBFC Finance Limited – Investor Presentation Summary

Key Operational Highlights

  • AUM grew 27% YoY and 6% QoQ to ₹12,592 crore as of September 30, 2026.
  • The company operates a pan-India network with presence in 18 states and 2 union territories covering 202 cities via 257 branches.
  • Key drivers of operational performance include focus on secured MSME loans in the ₹5 lakh to ₹30 lakh ticket size segment, which represents a market size of ₹4.6 lakh crore growing at 23% CAGR.

Business Momentum

  • Secured MSME AUM showed consistent growth trajectory.
  • Co-origination business validated profitable origination strategy.
  • No concentration risk with sector exposure not exceeding 15% of loan portfolio.

Credit Underwriting & Quality

  • Credit underwriting tailored to service underserved, underbanked informal customers.
  • Over 90% of secured MSME AUM from customers with CIBIL score above 700.
  • Granular loan book with high quality collateral.

Credit Indicators

  • Gross NPA: 2.6% (Stage 3% as per IND AS including EIR adjustment)
  • Net NPA: Not Specified
  • Provision Coverage Ratio (PCR): 42%
  • 1+ DPD %: Not Specified for latest period

ECL Provisions Summary

As on September 30, 2026 (all figures in ₹ crore):

  • Stage 1: Gross Loans ₹10,695, ECL Provision ₹31 (0.3%)
  • Stage 2: Gross Loans ₹390, ECL Provision ₹66 (16.9%)
  • Stage 3: Gross Loans ₹300, ECL Provision ₹127 (42.2%)
  • Total: Gross Loans ₹11,385, ECL Provision ₹224 (2.0%)

Collections Approach

  • 99% of collections performed digitally through in-house, on-ground collections teams.

Financial Highlights

Q2 FY27 Performance:

  • Revenue (Total Income): ₹547 crore (11.2% QoQ, 33.0% YoY)
  • Interest Income on Loans: ₹485 crore (6.9% QoQ, 29.3% YoY)
  • Pre-Provisioning Operating Profit: ₹227 crore (5.3% QoQ, 28.5% YoY)
  • PAT: ₹139 crore (6.7% QoQ, 27.2% YoY)
  • Basic EPS: ₹1.25 (Not Annualized)
  • Diluted EPS: ₹1.25 (Not Annualized)

H1 FY27 Performance:

  • Revenue (Total Income): ₹1,038 crore (29.9% YoY)
  • Interest Income on Loans: ₹938 crore (29.5% YoY)
  • Pre-Provisioning Operating Profit: ₹443 crore (31.3% YoY)
  • PAT: ₹269 crore (28.1% YoY)
  • Basic EPS: ₹2.43 (Not Annualized)
  • Diluted EPS: ₹2.42 (Not Annualized)

Key Ratios

Q2 FY27:

  • Interest Income on Loans/Average Loan Book: 18.0%
  • Fee & Other Income/Average AUM: 1.1%
  • Borrowing Cost/Average Borrowings: 8.4%
  • Spread: 9.6%
  • Net Interest Margin/Average AUM: 10.5%
  • Operating Expenses/Average AUM: 4.1%
  • Credit Cost/Average AUM: 1.4%
  • Profit after Tax/Average AUM: 4.6%
  • Leverage (Avg AUM/Avg Tangible Equity): 3.3x
  • RoATE: 15.0%

Balance Sheet Snapshot

As on September 30, 2026 (all figures in ₹ crore):

  • Cash and Bank Balances: ₹1,455
  • Loan Assets (Net): ₹11,161
  • Investments: ₹598
  • Total Assets: ₹13,684
  • Borrowings: ₹9,338
  • Equity & Reserves: ₹4,049

Sources of Borrowing

  • Diversified borrowing sources maintained.

Management & Governance

  • Experienced, cycle-tested, professional management team.
  • Strong corporate governance backed by marquee investors.
  • Board includes Neeraj Swaroop (Chairman), Ravi Venkatraman, Koni Uttam Nayak, Surekha Marandi, John Mescall, Jonathan Tatur, Leroy James Langeveld, Aseem Dhru (Executive Vice Chairman), and Mahesh Dayani (MD & CEO).

Shareholding Pattern

  • Clermont Group: 52.23%
  • SBI Mutual Fund: 8.05%
  • Aditya Birla Sun Life: 4.72%
  • Amansa Capital: 3.91%
  • Franklin India: 2.81%
  • Management & Employees: 5.7% of diluted share capital

Technology Landscape

  • Technology infrastructure supporting operations and digital collections.

Geographical Presence

  • Pan-India footprint with presence in 18 states and 2 union territories.
  • Operations across 202 cities through 257 branches.

#SBFC Finance Limited