SBI Cards and Payment Services Limited delivered exceptional Q3 FY26 results, demonstrating the effectiveness of its disciplined portfolio management and customer-centric approach. The company reported robust financial performance across key metrics while maintaining focus on sustainable growth and asset quality improvements.

Financial Performance Highlights

The quarter witnessed strong profitability with several key achievements:

The significant profit growth was primarily driven by improved gross credit costs and lower cost of funds. Revenue growth reflected higher spend-based income, with the company achieving record quarterly spend levels across both retail and corporate segments.

Asset Quality and Risk Management

SBI Cards demonstrated continued improvement in asset quality metrics, reflecting the impact of enhanced underwriting and portfolio management initiatives:

The company experienced a write-back of ₹121 crores under the ECL model due to reduced Stage 2 and Stage 3 stocks. However, management retained this provision as an overlay, demonstrating conservative approach toward future uncertainties.

Business Growth and Market Position

SBI Cards maintained its strong market position while focusing on quality customer acquisition:

The company added 864,000 new accounts during the quarter while maintaining focus on quality acquisitions. Management indicated plans to acquire 900,000 to 1 million new accounts quarterly going forward, emphasizing premium customer segments.

Operational Metrics and Strategic Initiatives

Key operational developments included successful launch of customer-centric initiatives and strategic partnerships. The company rolled out "Khushiyan Unlimited," a multilingual festive campaign featuring over 1,250 offers across 2,950+ cities. Strategic partnerships with Amazon, Flipkart, and Apple enhanced customer engagement, particularly around new product launches like the iPhone 17.

Receivables reached ₹57,213 crores with 4% YoY growth, while high interest earning assets stood at 56% with revolver rate at 23%. The net interest margin was 11% for the quarter, with cost of funds declining 5 basis points on daily weighted average basis.

Future Outlook and Strategic Direction

Management expressed confidence in sustainable growth prospects, emphasizing calibrated expansion while maintaining asset quality standards. The company plans to focus on EMI portfolio growth to expand interest-bearing assets and drive predictable revenue streams. With strong liquidity position and robust capital adequacy, SBI Cards is well-positioned to capitalize on India's expanding digital payments ecosystem and credit card market opportunities.

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.