SBFC Finance Limited , a non-banking financial company (NBFC), has announced its unaudited financial results for the quarter and half-year ended September 30, 2025. The company's board of directors approved these results during a meeting held on November 1, 2025.

Key Highlights

• SBFC Finance reported a net profit of Rs 1.09 billion for the quarter, compared to Rs 840 million in the same period last year, marking a 30% increase.
• The company's interest income increased to Rs 3.8 billion from Rs 2.8 billion year-on-year.
• The company issued 3,76,240 equity shares during the quarter and 71,98,313 shares during the half-year to employees under stock option policies.
• An additional 1,05,000 equity shares were transferred from the employee welfare trust to eligible employees during the half-year.
• SBFC Finance raised Rs 200 crore through Non-Convertible Debentures (NCDs) in August 2025.

Financial Performance

For the quarter ended September 30, 2025, SBFC Finance reported the following results:

Asset Quality

As of September 30, 2025:

• Gross Non-Performing Asset (GNPA) ratio stood at 2.77%, slightly lower than the 2.78% reported in the previous quarter.
• Net Non-Performing Asset (NNPA) ratio was 1.51%, down from 1.57% in the previous quarter.
• The provision coverage ratio improved to 46.17% from 44.38% in the previous quarter.

The marginal improvement in asset quality metrics indicates better asset quality management by the company.

Capital Adequacy and Liquidity

• The company maintained a strong capital position with a Capital to Risk Assets Ratio (CRAR) of 34.05%.
• The Liquidity Coverage Ratio stood at 174.00%, indicating robust liquidity management.

NCD Issuance and Utilization

SBFC Finance raised Rs 200 crore through Non-Convertible Debentures in August 2025. As of September 30, 2025, Rs 101.90 crore of this amount has been utilized for onlending to secured micro, small and medium enterprises and gold loans. The company confirmed that it maintains sufficient security cover for its listed non-convertible debentures and is in compliance with regulatory requirements.

Employee Stock Options

The company continues to use employee stock options as a tool for talent retention and alignment of employee interests with those of the company. During the quarter, 3,76,240 equity shares were issued to employees under various SBFC Stock option policies.

Outlook

SBFC Finance has shown strong growth in revenue and profitability while maintaining a cautious approach to asset quality. The slight improvement in GNPA and NNPA ratios, along with an increased provision coverage ratio, suggests a focus on maintaining asset quality while pursuing growth.

The company's robust capital adequacy and liquidity position indicate its preparedness to capitalize on growth opportunities in the NBFC sector, particularly in lending to micro, small, and medium enterprises.

SBFC Finance's continued use of employee stock options and the recent NCD issuance demonstrate its focus on employee retention and diversifying its funding sources, which could support its growth plans in the coming quarters.

SBFC Finance Limited, a prominent player in the Indian financial services sector, has successfully resolved a regulatory matter with the Government of Telangana. The company announced on October 11, 2025, that it had received confirmation of the closure of a Show Cause Notice issued by the Telangana Commercial/State Taxes Department, with nil demand.

Background of the Notice

The Show Cause Notice, originally issued under Section 8 of the Telangana Profession Tax Act, 1987, pertained to allegations of non-payment of Profession Tax and non-filing of tax returns. SBFC Finance had promptly responded to the notice, providing clarification and evidence that the required Professional Tax had been duly paid.

Resolution Details

The resolution of this regulatory matter unfolded as follows:

Impact on the Company

In its disclosure to the National Stock Exchange of India Limited and BSE Limited, SBFC Finance emphasized that this development has no financial or operational impact on the company. The swift resolution of this matter demonstrates the company's commitment to regulatory compliance and its ability to effectively address regulatory inquiries.

Management's Response

Namrata Sajnani, Company Secretary & Chief Compliance Officer of SBFC Finance Limited, signed the official communication to the stock exchanges. The company's proactive approach in responding to the Show Cause Notice and its transparent communication with stakeholders underscores its dedication to maintaining good corporate governance practices.

This resolution brings closure to the regulatory inquiry and reaffirms SBFC Finance's standing as a compliant entity in the financial services sector. Investors and stakeholders can take confidence in the company's ability to navigate regulatory challenges effectively, ensuring continued focus on its core business operations.