SBI Cards and Payment Services Limited delivered a strong financial performance for the quarter ended December 31, 2025, with net profit jumping 45.2% year-on-year to ₹556.64 crores. The credit card company's robust results reflect continued business momentum and improved operational efficiency across key metrics.

Strong Revenue Growth Drives Performance

The company's total income for Q3 FY26 reached ₹5,353.42 crores, marking a significant increase from ₹4,766.56 crores in the corresponding quarter of the previous year. Revenue from operations grew to ₹5,127.26 crores, primarily driven by higher interest income and fees & commission income.

Profitability Metrics Show Improvement

Profit before tax for Q3 FY26 stood at ₹749.11 crores compared to ₹517.63 crores in Q3 FY25, representing a substantial 44.7% year-on-year growth. The company's net profit margin improved to 10.40% for the quarter. Total expenses increased to ₹4,604.31 crores from ₹4,248.93 crores in the previous year, primarily due to higher operating expenses and impairment provisions.

Nine-Month Performance Remains Robust

For the nine months ended December 31, 2025, SBI Cards reported net profit of ₹1,557.40 crores, up 12.7% from ₹1,382.10 crores in the corresponding period last year. Total income for the nine-month period reached ₹15,520.59 crores compared to ₹13,804.78 crores in the previous year, reflecting consistent business growth.

Asset Quality Maintained

The company maintained healthy asset quality parameters with gross NPA (stage 3 balance) at 2.86% and net NPA at 1.28% as of December 31, 2025, compared to 3.08% and 1.46% respectively as of March 31, 2025. The provision coverage ratio stood at 56.06%, while the company holds total expected credit loss provisions of ₹1,989.09 crores.

Key Financial Highlights

Earnings per share for Q3 FY26 improved to ₹5.85 (both basic and diluted) compared to ₹4.03 in Q3 FY25. For the nine-month period, EPS reached ₹16.37 (basic) and ₹16.36 (diluted). The company's paid-up equity share capital increased to ₹951.58 crores as of December 31, 2025, following the allotment of shares under the employee stock option scheme.

SBI Cards and Payment Services Limited has completed the allotment of 8,096 equity shares to eligible employees under its Employee Stock Option Plan 2023. The company informed stock exchanges about this development through a regulatory filing on January 27, 2026.

ESOP Allotment Details

The Nomination and Remuneration Committee of the Board approved the share allotment through its resolution dated January 27, 2026. The allotment was made to eligible participants of the company pursuant to the exercise of options under the SBI Card - Employee Stock Option Plan 2023.

Impact on Share Capital

The allotment has resulted in an increase in the company's paid-up capital structure. The share capital expansion reflects the company's commitment to employee participation through equity ownership.

Regulatory Compliance

SBI Cards has fulfilled its disclosure obligations by informing both BSE Limited and the National Stock Exchange of India Limited about the share allotment. The company trades on BSE under scrip code 543066 and on NSE under the symbol SBICARD. The information has also been uploaded on the company's official website at www.sbicard.com as part of its transparency commitments.

The allotment represents the company's ongoing implementation of its employee stock option scheme, designed to align employee interests with shareholder value creation. The exercise price of Rs. 10 per share, matching the face value, indicates these were likely foundational ESOP grants under the 2023 scheme.