SBFC Finance Limited has uploaded the audio recording of its earnings conference call for the quarter ended June 30, 2026 (Q1FY27), to its official website. The call, which was held on July 25, 2026, provides stakeholders with a detailed review of the company’s financial performance and operational highlights for the period.

The recording is accessible under the 'Investor Presentation – Audio Recordings' section at https://www.sbfc.com/investors . A direct link to the audio file is also provided: https://www.sbfc.com/investors/2026/Q1-FY27-Concall-Audio.mp3 . This disclosure is made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Conference Call Recap

The earnings call was conducted on July 25, 2026, starting at 05:00 PM IST. The session was led by senior management, including:

• Aseem Dhru, Executive Vice Chairman
• Mahesh Dayani, Managing Director & CEO
• Sanket Agrawal, Chief Financial Officer
• Rajiv Thakker, Chief Risk Officer

Participants could join via universal access numbers coordinated by ICICI Securities. The discussion covered the company’s Q1FY27 results, allowing investors and analysts to seek clarity on financial figures and strategic updates.

Access Details

For reference, the access numbers used during the live event are listed below:

Next Steps

The company stated that the transcript of the earnings conference call will be uploaded on its website and submitted to the stock exchanges in due course. Investors seeking further information regarding the results or the conference call can contact Sanket Agrawal, Chief Financial Officer, at sanket.agrawal@sbfc.com .

SBFC Finance Limited reported a 29% year-on-year increase in net profit to ₹130 crore for the quarter ended June 30, 2026 (Q1FY27), driven by a 27% surge in assets under management (AUM) to ₹11,922 crore and improved operational efficiency. The NBFC’s profit after tax (PAT) grew from ₹101 crore in Q1FY26, supported by a widening spread of 9.48% and a reduction in the cost-to-AUM ratio by 30 basis points to 4.29%. This performance highlights the company’s ability to scale profitability while maintaining asset quality in the secured MSME lending segment.

The Board of Directors approved the unaudited financial results on July 25, 2026, based on recommendations from the Audit Committee. The results were reviewed by statutory auditors M M Nissim & Co. LLP under Regulation 33, 52, and 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. SBFC Finance also submitted an investor presentation detailing its business momentum, credit underwriting framework, and liquidity position.

Financial Performance

Total income rose 26.5% YoY to ₹492 crore, with interest income on loans contributing ₹454 crore, up from ₹350 crore in the previous year’s quarter. Pre-provisioning operating profit (PPOP) expanded 34.4% to ₹216 crore. Despite a rise in credit costs to ₹42 crore from ₹25 crore, the company maintained strong margins. Return on average tangible equity (RoATE) improved by 120 basis points to 14.73%, while return on average AUM (RoAAUM) remained stable at 4.53%.

Operating expenses increased to ₹123 crore from ₹103 crore, but the cost-to-AUM ratio declined to 4.29% from 4.59%. The borrowing cost decreased by 90 basis points to 8.42%, aiding the expansion in net interest margin to 10.68%.

Asset Quality and Capital Position

Gross non-performing assets (GNPA) stood at 2.66%, down 12 basis points YoY but up 5 basis points QoQ. Net non-performing assets (NNPA) were 1.55%, consistent with recent trends. The provision coverage ratio (PCR) was 42.22%, slightly higher than 41.64% at the end of FY26. The capital adequacy ratio (CRAR) was 31.95%, down from 32.84% at the end of FY26, reflecting asset growth against the capital base. Tangible net worth rose to ₹3,613 crore.

AUM grew 27% YoY to ₹11,922 crore, with secured MSME loans constituting 78% of the portfolio. Disbursement value for secured MSME loans remained flat at ₹809 crore, while volume declined 11% to 7,700 tickets, indicating a shift towards larger ticket sizes. Over 89% of the AUM comprised customers with CIBIL scores above 700, underscoring credit quality.

What the Numbers Show

The divergence between PPOP growth (34.4%) and revenue growth (26.5%) indicates significant operational leverage, as the cost-to-AUM ratio improved despite rising absolute expenses. The widening spread of 81 basis points YoY, driven by a stable yield of 17.90% and lower borrowing costs, directly fueled the expansion in RoATE. While credit costs rose sharply, they remain manageable relative to the growing loan book, suggesting that the provision coverage is adequate for current asset quality trends.