NSE: SBFC · BSE: 543959
SBFC FINANCE LIMITED
Lends to micro, small and medium enterprises and against gold collateral, funded by a mix of bank borrowings, non-convertible debentures and other debt. The company earns the spread between the yield on its loan book (17.9% in Q1 FY27) and its cost of borrowing (8.42% in Q1 FY27). Co-origination with banks was reset to about 10% of disbursements from 20% earlier, following an April 2026 RBI circular on MSME collateral. Employee costs at 17% of revenue are the largest non-fund cost line, with management guiding to a 25 bps cut in cost-to-AUM for FY27. Asset quality is being intentionally insulated — Stage 2 provisioning was raised from 6% to 16%, taking total provisioning to 1.91% of assets (about 2x the regulatory minimum), and GNPA stood at 2.66% in Q1 FY27. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. MSME lending, Gold loans. Spread-based, branch-led NBFC focused on MSME and gold lending
Exhibit 1: Financial summary, FY24–FY25 (all audited; no estimate years)
| ₹ crore · consolidated | FY24 | FY25 |
|---|---|---|
| Revenue | 1,019 | 1,306 |
| EBITDA (ex other income) | 679 | 894 |
| margin % | 66.6 | 68.5 |
| Owners' profit | 237 | 345 |
| EPS, as reported (₹) | 2.35 | 3.21 |
| ROE % · ROCE % | 8.5 · — | 10.8 · — |
| Debt / equity (x) | — | — |
| Cash from operations | (1,155) | (1,415) |
| Capex | (11) | (9) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q1 FY24 | Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 230 | 246 | 264 | 279 | 298 | 314 | 334 | 361 |
| Profit before tax | 63 | 71 | 86 | 97 | 105 | 110 | 118 | 125 |
| Net profit | 47 | 53 | 64 | 74 | 79 | 84 | 88 | 94 |
| EPS (₹) | 0.52 | 0.52 | 0.60 | 0.69 | 0.74 | 0.78 | 0.82 | 0.87 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| BAJAJ FINANCE LIMITED | 5,67,346 | 27.9 | 4.85 | — | 16.5 | — | 25.2 | 70.7 |
| SHRIRAM FINANCE LIMITED | 1,93,785 | 14.5 | 2.94 | — | 15.2 | — | 22.5 | 74.7 |
| TATA CAPITAL LIMITED | 1,28,620 | 23.5 | 2.73 | — | 10.4 | — | — | 75.8 |
| CHOLAMANDALAM IN & FIN CO | 1,25,298 | 21.7 | 4.11 | — | 17.2 | — | 26.5 | 71.2 |
| MUTHOOT FINANCE LIMITED | 96,653 | 8.5 | 2.43 | — | 26.7 | — | 22.0 | 84.0 |
| SBI CARDS & PAY SER LTD | 50,250 | 22.1 | 3.20 | — | 13.8 | — | — | 33.1 |
| SUNDARAM FINANCE LTD | 42,997 | 19.2 | 2.89 | — | 13.8 | — | — | 78.4 |
| PIRAMAL FINANCE LIMITED | 42,166 | 24.9 | 1.50 | — | 5.3 | — | — | 63.4 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 26.2 | 18.5 | 127 of 200 | 37% |
| P/B | 2.9 | 1.1 | 205 of 253 | 19% |
| ROE | 10.8 | 3.1 | 48 of 257 | 82% |
| EBITDA margin | 68.7 | 48.6 | 87 of 249 | 65% |
| Revenue growth | 29.3 | 12.6 | 86 of 231 | 63% |
| Profit growth | 27.5 | 7.8 | 104 of 251 | 59% |
| Market cap | 9301 | 33 | 17 of 268 | 94% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 26 Oct 2026 · SBFC Finance shares Q2 FY27 earnings call audio | investor communications | low | — | — |
| 26 Oct 2026 · Newspaper publication of SBFC September 2026 results | compliance | minimal | — | — |
| 24 Oct 2026 · Q2 FY27 presentation shows 27% profit growth and 27% asset growth | investor communications | medium | — | — |
| 24 Oct 2026 · SBFC Finance Q2 FY27: revenue up 33%, PAT up 27% | results | high | — | — |
| 21 Oct 2026 · SBFC Finance Q2 FY27 earnings call on 26 October 2026 | board shareholder meetings | low | — | — |
| 14 Oct 2026 · SBFC Finance: India Ratings affirms ratings on securitisation notes | credit debt | medium | — | — |
| 13 Oct 2026 · SBFC confirms Compliance Officer and RTA, no changes in Q2 FY27 | compliance | minimal | — | — |
| 8 Oct 2026 · Compliance certificate for share dematerialization filed for Q2 FY27 | compliance | minimal | — | — |
| 7 Oct 2026 · SBFC Finance allots 28.9 lakh shares to employees under ESOP schemes | capital market events | low | — | — |
| 5 Oct 2026 · ICRA reaffirms SBFC Finance ratings; bank facility enhanced to Rs 3,000 cr | credit debt | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.