SBFC Finance Limited Q1 FY27 PAT Rises 29% YoY to ₹130 Crore; AUM Up 27%

BY ADMIN • FILED 25 Jul 2026, 4:42 PM

SBFC Finance Limited has released its investor presentation for the quarter ended June 30, 2026 (Q1 FY27), reporting another quarter of strong financial and operational performance. The NBFC delivered healthy growth across profitability, assets under management (AUM), and lending operations, supported by sustained demand for secured MSME loans and continued expansion of its branch network.

The company reported a 29% year-on-year (YoY) increase in Profit After Tax (PAT) while its AUM crossed the ₹11,900 crore mark, reflecting consistent execution of its growth strategy in the secured lending segment.

Strong Earnings Growth in Q1 FY27

SBFC Finance posted robust improvements across its key financial indicators during the quarter.

Key Financial Highlights

Profit After Tax (PAT): Increased 29% YoY and 6% quarter-on-quarter (QoQ) to ₹130 crore, compared with ₹101 crore in Q1 FY26.
Assets Under Management (AUM): Expanded 27% YoY and 6% QoQ to ₹11,922 crore, surpassing the ₹11,000 crore milestone.
Gross Non-Performing Assets (GNPA): Improved to 2.66%, down 12 basis points from the previous year.
Provision Coverage Ratio (PCR): Maintained at 42%, reflecting prudent risk management.
Return on Average Assets (ROAA): Improved to 4.53%, up 3 basis points YoY.
Return on Average Equity (ROAE): Increased to 14.73%, expanding by 120 basis points YoY.
Yield on Total Assets: Rose to 17.90%, an improvement of 29 basis points YoY.
Spread: Expanded by 81 basis points YoY to 9.48%.
Operating Expenses to Average AUM: Improved by 30 basis points YoY to 4.29%, highlighting better operating efficiency.

Continued Focus on Secured MSME Lending

SBFC Finance continues to strengthen its position in the secured MSME lending segment, catering primarily to small businesses with loan ticket sizes ranging from ₹5 lakh to ₹30 lakh.

The company estimates that the addressable market for this segment stands at approximately ₹4.61 lakh crore, supported by an annual growth rate of around 23%, providing significant opportunities for long-term expansion.

Branch Network Continues to Expand

During the quarter, SBFC Finance further enhanced its distribution network to improve customer reach across India.

As of June 30, 2026, the company operated:

256 branches
Presence across 201 cities
Operations in 18 states and 2 Union Territories
Addition of 41 new branches over the past 12 months

The expanded physical presence is expected to support customer acquisition, deepen penetration in underserved MSME markets, and drive sustainable loan growth.