Date: 18th June, 2026

General Company Disclosures

Corporate Identity: Corporate Identity Number (CIN) is L67190MH2008PLC178270. The company was incorporated on 25th January 2008.

Registered & Corporate Office: Unit No 103, 1st Floor, C&B Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri East, Mumbai 400059.

Contact Details: Email - companysecretary@sbfc.com; Telephone - 91-22-67875300; Website - www.sbfc.com.

Financial Year: The report covers the period from 1st April 2025 to 31st March 2026.

Listing: Shares are listed on the National Stock Exchange of India Limited (NSE) and BSE Limited.

Paid-up Capital: 1,106,414,229 shares of face value ₹10 each, amounting to ₹11,064,142,290 as of March 31, 2026.

Reporting Basis & Contact: The BRSR is prepared on a standalone basis. The designated contact for the report is Shekhar Bhoral (+91-8894348622, shekhar.bhoral@sbfc.com).

Business Activity: SBFC Finance Limited is a non-banking financial company (NBFC) focused on providing loans to the underserved section of society, including entrepreneurs, small business owners, and self-employed individuals. This accounts for 100% of its turnover. Its primary product is 'Other Credit Granting' (NIC Code 64920), contributing 91.3% to total turnover, which includes secured MSME loans and loans against gold.

Operations: The entity has 253 operational locations across 18 States and 2 Union Territories in India. It has no international operations or exports.

Employees & Workforce

Total Employees: 5,144 as of the end of FY26, comprising 3,302 permanent employees and 1,842 'other than permanent' employees.

Gender Diversity:

  • Total Male Employees: 4,694 (3,003 permanent + 1,691 other)
  • Total Female Employees: 450 (299 permanent + 151 other)
  • Female representation on the Board of Directors: 1 out of 9 members (11.1%)
  • Female representation in Key Management Personnel: 1 out of 4 members (25%)

Differently Abled Employees: 1 differently abled male permanent employee, representing 0.02% of the total workforce.

Employee Benefits:

  • 100% of permanent employees are covered under Provident Fund (PF) and Gratuity.
  • 8.6% of permanent employees are covered under ESI.
  • 100% of employees are covered by health insurance and accident insurance.

Turnover Rate: The total turnover rate for permanent employees was 46.1% in FY26 (Male: 47.3%, Female: 34.1%).

Parental Leave: Return to work rate after parental leave was 100% for both genders. Retention rates were 88% for males and 67% for females.

Training: 5,055 employee training sessions were held in FY26, covering 100% of employees in topics including cyber security, POSH, code of conduct, and departmental skills.

Holding Structure

Holding Company: SBFC Holdings Pte. Ltd. is the holding company, in which SBFC Finance Limited holds a 52.35% stake.

Corporate Social Responsibility (CSR)

CSR Applicability: CSR is applicable as per Section 135 of the Companies Act, 2013.

Financials for CSR: Turnover for CSR calculation was ₹16,788.21 million. Net worth was ₹37,251.52 million.

CSR Initiatives & Beneficiaries:

  • Shiksha (Education): 752 students supported.
  • Gurukul (Skill Development): 547 apprentices trained.
  • Aarogya (Health Care): 7,544 beneficiaries.
  • Vikas & Paryavaran (Development & Sustainability): 1,700 lives impacted by providing 147 solar lights in Manipur.

Material Responsible Business Conduct Issues

The report identifies and details several material issues:

1. Sustainable Finance (Opportunity)

Rationale: Financing is key to enabling a sustainable economy. Focusing on the underserved MSME sector presents a substantial opportunity for impact.

Approach: Addressing the financing gap for MSMEs by providing loans for scaling operations and business expansion.

Financial Implications: Positive. Attracts impact investors, improves risk mitigation, and enhances reputation.

2. Climate Change (Risk)

Rationale: Poses a risk to operations, clients, and the broader economy.

Approach: Proactive measures include a policy around excluded activities, refusing funding for illegal or banned products/activities per global conventions.

Financial Implications: Negative. Includes potential for increased loan defaults and reduced asset values in vulnerable sectors.

3. Financial Inclusion and Capacity Building (Opportunity)

Rationale: MSMEs lack access to formal credit. SBFC aims to fill this gap for underserved business owners, women, and marginalized groups.

Approach: Forming partnerships, leveraging data & analytics, and ensuring ethical selling and responsible marketing.

Financial Implications: Positive. Leads to market expansion, customer loyalty, and enhanced reputation.

4. Employee Health & Wellbeing (Opportunity)

Rationale: Presents an opportunity to create a positive work environment.

Approach: Providing robust health benefits, ensuring workplace safety, and offering flexible work arrangements.

Financial Implications: Positive. Increases productivity, reduces absenteeism/turnover, and enhances employee engagement.

5. Customer Experience (Opportunity)

Rationale: An opportunity to enhance competitiveness and build client relationships.

Approach: Digital innovation via a 'PhyGital' model, robust grievance redressal mechanisms, and continuous improvement.

Financial Implications: Positive. Increases customer loyalty, word-of-mouth referrals, and provides a competitive advantage.

6. Diversity and Inclusion (Opportunity)

Rationale: An opportunity to foster innovation, creativity, and equality.

Approach: Implementing inclusive workplace policies, training, human rights considerations, fair wage compliance, and a grievance mechanism.

Financial Implications: Positive. Drives innovation, enhances productivity, and aids in talent attraction/retention.

7. Data privacy and Cyber security (Risk)

Rationale: Significant risk due to potential financial and reputational consequences of data breaches.

Approach: A well-defined cyber security and data privacy policy, and a 'PhyGital' operational model.

Financial Implications: Negative. Includes potential reputation damage and financial losses from regulatory fines or legal costs.

8. Economic Performance (Opportunity)

Rationale: Strong performance enables expansion, competitive offerings, and builds trust.

Approach: Leveraging financial strength, a skilled workforce, risk management, analytics, innovation, and responsible investments.

Financial Implications: Positive. Enhances investor confidence, provides a competitive advantage, and improves capital access.

9. Business Ethics and Governance (Risk & Opportunity)

Rationale: Crucial for establishing trust and mitigating inherent financial sector risks.

Approach: A strong Code of Conduct and robust governance frameworks for proactive compliance.

Financial Implications: Positive & Negative. Improves reputation and reduces legal expenses, but failure exposes the company to sanctions and penalties.

10. Risk Management (Risk & Opportunity)

Rationale: Helps enhance stability, resilience, and sustainable growth in a risk-prone environment.

Approach: A comprehensive risk management strategy to identify, mitigate, and monitor risks.

Financial Implications: Positive. Reduces losses, enhances profitability, and improves creditworthiness.

Policies & Commitments

Listed Policies: The entity has policies covering Code of Conduct, CSR, Corporate Governance, Nomination and Remuneration, and Whistle Blower. All policies have been translated into procedures and extended to value chain partners where applicable.

Adopted Standards: SBFC adheres to the RBI's Fair Practice Code for NBFCs and is ISO 27001:2022 certified.

Specific Goals & Targets:

  • Inclusive Lending: 50% of disbursements to low-income households (<=INR 28,000); 95%+ of disbursements involving women as main applicants or collateral owners; committed to the 2X Challenge (50%+ to women-led SMEs).
  • Workforce Diversity: Target of 25%+ women participation at Head Office (achieved 24% in FY26).
  • Training: Target 90% coverage in skill development (achieved 98% in FY26).
  • CSR: Focus on education (Shiksha), skill development (Gurukul), and healthcare (Aarogya).
  • Health & Safety: 100% employee coverage in Human Rights training.
  • Data Privacy: Maintain compliance with ISO 27001:2022.

Governance & Oversight

Board Statement: A statement by the director highlights the belief in the power of small businesses, the expansion into smaller towns, CSR initiatives, and the commitment to integrating ESG principles. Future focus includes deepening presence in underserved regions, using technology, and strengthening governance.

Oversight Responsibility: The Board of Directors is the highest authority responsible for the BRSR. The CSR Committee, ESG Management Committee, and Stakeholders Relationship Committee are responsible for decision-making on sustainability issues.

Policy Review: All policies are reviewed by the Board and senior management on an annual basis. The company reported no non-compliances with statutory requirements.

Principle-wise Performance (Selected Highlights)

Principle 3 (Employee Well-being):

  • Spending on employee well-being measures was 0.14% of total revenue in FY26.
  • The workplace is accessible to differently-abled employees as per the Rights of Persons with Disabilities Act, 2016.
  • The company has an equal opportunity policy.
  • There were zero safety incidents, fatalities, or complaints related to working conditions or health & safety.

Principle 5 (Human Rights):

  • 100% of employees (5,055) were provided training on human rights issues.
  • 100% of permanent and 99.48% of other-than-permanent employees were paid more than the minimum wage.
  • Median Remuneration: BoD (Ind.) - ₹18,00,000; KMP - ₹3,50,00,000; Other Employees - ₹3,60,000.
  • Gross wages paid to females constituted 6.40% of total wages.
  • Zero complaints were received across all human rights categories, including sexual harassment.

Principle 6 (Environment):

  • Energy Consumption: Total energy consumed was 15,277.19 GJ from non-renewable sources (mainly electricity). Energy intensity was 0.91 GJ/Mn. INR of turnover.
  • Water Consumption: Total water withdrawal was 2,664 kL from third-party sources. Water intensity was 0.16 kL/Mn. INR of turnover.
  • GHG Emissions: Scope 1 emissions were 0 tCO2e. Scope 2 emissions were 3,013 tCO2e. Emission intensity was 0.18 tCO2e/Mn. INR of turnover.
  • Waste Generated: Total waste was 6.07 metric tonnes (Plastic: 1.9t, E-waste: 0.47t, Other non-hazardous: 3.7t). 100% of waste was recycled.
  • Initiatives: Included adopting LED lighting, digitalization to reduce paper, implementing an e-waste policy, and replacing single-use plastic bottles.
  • The entity is compliant with all applicable environmental laws and reported no fines/penalties.

Principle 9 (Customers):

  • Complaints: 405 customer complaints were received in FY26, all of which were resolved (100% resolution rate).
  • Data Privacy: The company has a cybersecurity and data privacy framework. Zero data breaches were reported.
  • Mechanisms include a multi-channel grievance redressal system and a 'PhyGital' model for customer education and service.

Grievance Redressal

Customer Complaints: 405 complaints were filed in FY26, with none pending at the year's end. This is compared to 218 filed and 1 pending in FY25.

Employee/Other Complaints: Zero complaints were received from communities, shareholders, investors, employees, workers, or value chain partners on NGRBC principles.