SBFC Finance Limited has been assigned an ESG rating of 64 by NSE Sustainability Ratings and Analytics Limited for the financial year 2024-25. The company disclosed this development to the stock exchanges on December 10, 2025, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ESG Rating Details

The ESG rating was assigned by NSE Sustainability Ratings and Analytics Limited, which is a SEBI registered ESG rating provider. The rating reflects the company's performance across environmental, social, and governance parameters for FY 2024-25.

Independent Assessment Process

SBFC Finance clarified that it did not engage NSE Sustainability Ratings and Analytics Limited for the ESG rating assessment. The rating provider independently prepared the report based on the company's data available in the public domain. This approach demonstrates the rating agency's proactive evaluation methodology using publicly accessible information.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of SEBI Listing Regulations and other applicable provisions. The company has also made this information available on its official website at https://www.sbfc.com/investors , ensuring transparency for all stakeholders.

Company Information

SBFC Finance Limited operates in the finance sector and is listed on both NSE (symbol: SBEC) and BSE (scrip code: 543959). The company's registered office is located at Unit No. 103, 1st Floor, CRB-Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri (East) Mumbai-400059.

SBFC Finance Limited , a prominent player in the secured lending space, has reported robust financial performance for Q2 FY'26, marking significant growth and reaching a key milestone in its journey.

Strong Financial Performance

SBFC Finance has delivered impressive results for the quarter ended September 2025:

The company crossed the Rs 10,000 crore AUM milestone during the quarter, showcasing its strong growth trajectory.

Improved Operational Efficiency

SBFC Finance has demonstrated enhanced operational efficiency:

• Yield improved to 18.01%, up 2 basis points QOQ and 32 basis points YOY
• Cost of borrowing reduced to 8.96%, down 36 basis points both QOQ and YOY
• Spread widened to 9.05%, improving 38 basis points QOQ and 68 basis points YOY
• Operating expenses continued to improve due to enhanced operating leverage

Asset Quality and Credit Strategy

The company maintains a cautious outlook on asset quality:

• Gross NPA remained range-bound at 2.77%
• Provision coverage ratio stood at 46.17%
• Credit cost increased to 1.29% for the quarter
• The company has tightened its credit filters, stopping lending below Rs 7 lakhs and raising the minimum CIBIL score requirement to 700

Business Focus and Expansion

SBFC Finance continues to focus on secured lending:

• MSME AUM, constituting 82% of total AUM, grew by 29% YOY and 6% QOQ
• The company operates through 220 branches, adding 5 branches during the quarter
• 100% of the loan book is secured by properties and gold

Management Commentary and Outlook

Aseem Dhru, MD & CEO, commented on the results, stating, "We have crossed 14% ROE, and as more things go our way, in terms of what has been said as operating leverage, hopefully, it will have the effect on ROE."

The management has guided for:

• 5-7% quarter-on-quarter AUM growth
• Potential increase in credit costs by 10-15 basis points before stabilization
• Continued focus on tightening credit screens and managing asset quality

Conclusion

SBFC Finance's Q2 FY'26 results demonstrate the company's resilience and growth potential in the secured lending space. While navigating challenges in certain geographies and loan segments, the company's strategic focus on operational efficiency and prudent credit practices positions it well for sustainable growth in the coming quarters.