SBFC Finance Limited has announced its audited financial results for FY26, demonstrating robust performance across key metrics. Following the results announcement, the company has scheduled an investor presentation and earnings conference call for April 27, 2026.

Financial Performance Overview

The company delivered strong financial results for FY26, with significant growth in revenue and profitability. The audited statements reflect comprehensive performance across quarterly and annual periods.

Investor Engagement and Presentation

SBFC Finance has scheduled an earnings conference call for Monday, April 27, 2026 at 09:00 AM IST with investors to discuss the financial results for the quarter and year ended March 31, 2026. The company submitted the investor presentation to stock exchanges on April 25, 2026, which will be referenced during the earnings call.

Regulatory Compliance and Board Approval

The Board of Directors meeting was held on April 25, 2026, commencing at 01:30 PM IST, with audited financial results approved at 02:00 PM IST. The company has fulfilled all requirements under SEBI regulations, including submissions of audited financial results with unmodified audit reports and related party transaction statements.

Asset Quality and Capital Position

The company maintains strong asset quality metrics with Gross NPA at 2.61% and Net NPA at 1.54% as of March 31, 2026. The provision coverage ratio stands at 41.64%, while the capital to risk assets ratio is maintained at 32.84%.

The financial results reflect SBFC Finance's continued growth trajectory and regulatory compliance as a Non-Banking Financial Company registered with the Reserve Bank of India under the Middle Layer classification.

Source: Company/INE423Y01016/58f8b23c-731c-401a-abe3-56f038c58d52.pdf

SBFC Finance Limited has received rating affirmation from India Ratings and Research Private Limited, maintaining its IND AA-/Stable credit rating across key financial instruments. The rating agency announced the affirmation on April 16, 2026, covering both bank loan facilities and non-convertible debentures totaling significant amounts.

Rating Affirmation Details

India Ratings affirmed SBFC Finance's credit ratings across two major instrument categories:

The NCDs carry ISINs INE423Y07104 and INE423Y07138, with the rating verification completed on May 27, 2025, and August 22, 2025, respectively.

Financial Performance and Capitalisation

SBFC Finance demonstrates robust financial metrics supporting the rating affirmation. The company's tangible net worth reached ₹32.9 billion in 9MFY26, showing consistent growth from ₹29.3 billion in FY25 and ₹25.2 billion in FY24. The loan book expanded to ₹90.7 billion in 9MFY26 from ₹75.0 billion in FY25, while assets under management grew to ₹104.8 billion.

Business Operations and Market Presence

The company operates through a network of 230 branches across 17 states and two union territories, covering 181 cities in India. SBFC Finance focuses primarily on two key secured products: loan against property catering to micro, small, and medium enterprises, and loans against gold. Secured MSME loans comprised 81% of AUM in 9MFY26, while loans against gold constituted 19%.

The company maintains granular lending with average ticket sizes of ₹1.0 million for secured MSME loans and ₹0.1 million for loans against gold as of December 2025. SBFC continues focusing on traders and retail customer profiles in its MSME segment, with ticket sizes less than ₹3 million and loan-to-value ratios below 70%.

Asset Quality and Risk Management

SBFC Finance maintains stable asset quality metrics with gross non-performing assets at 2.71% in 9MFY26, compared to 2.74% in FY25. The company has strategically shifted toward better profile borrowers, with customers having CIBIL scores above 700 increasing to 87.3% from 82.3% over FY23-9MFY26. The provision coverage ratio improved to 46.2% in 3QFY26 from 45.7% in FY25.

Funding Profile and Liquidity

As of December 2025, SBFC Finance's funding composition includes bank loans at 47.4%, external commercial borrowings at 19.3%, co-origination at 15.9%, and non-convertible debentures at 12.1%. The company maintains relationships with approximately 32 lenders and had unencumbered cash and liquid investments of ₹11.48 billion at end-December 2025, adequate to meet debt and operating expenses outflows of ₹10.80 billion for January-March 2026.

Rating Outlook and Monitorables

India Ratings expects SBFC Finance to continue growing its franchise while maintaining focus on secured products and profitability buffers. Key rating monitorables include the company's ability to maintain stable asset quality with portfolio seasoning, diversify funding across various instruments, and ensure senior management stability. The agency noted recent senior management changes but highlighted the presence of established second-line management and institutionalised approaches across functions.