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SBFC · price
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SBFC Finance reported Q4 FY'26 PAT of INR 123 crores (up 30% YoY) and full-year PAT of INR 451 crores (up 31% YoY). AUM stands at INR 11,270 crores with 29% YoY growth, comprising 79% MSME and 21% gold loans. The company added 46 branches taking total to 251. Management highlighted cost of funds reduced by 48 bps and opex down by 46 bps YoY, with cumulative 161 bps opex reduction over 3 years against 150 bps guided. Gold loan growth of 63% YoY was largely price-driven. Stage 2 assets increased from 6% to 16% following model refresh, though overall provisions only rose 2 bps to 1.84%. Management maintained quarterly growth guidance of 5-7% and targets doubling the book over 3-3.5 years given the INR 4 lakh crore TAM with only 30% district penetration.
The company demonstrates strong operational efficiency with improving spreads (9.09%) and ROA (4.57%), well-capitalized at 33% CRAR with leverage of 1.9x debt/equity, positioning it to navigate macro headwinds while maintaining disciplined growth in the MSME/gold lending segment.