SBFC Finance Q2 FY27 results: net profit up 27.2% to ₹138.87 crore, revenue up 33.0%

How did SBFC Finance perform in Q2 FY27?

SBFC Finance reported standalone revenue from operations of ₹546.39 crore for Q2 FY27, up 33.0% from ₹410.78 crore in Q2 FY26 and 11.2% from ₹491.46 crore in Q1 FY27. Total income was ₹546.66 crore, while profit before tax rose to ₹185.78 crore from ₹145.88 crore a year ago and ₹174.12 crore in the previous quarter.

Net profit for Q2 FY27 was ₹138.87 crore, up ₹29.73 crore or 27.2% from Q2 FY26 and ₹8.75 crore or 6.7% from Q1 FY27. Basic EPS was ₹1.25, against ₹1.00 in Q2 FY26 and ₹1.18 in Q1 FY27. EBITDA and EBITDA margin were not reported on a comparable basis in the supplied results.

The profit margin was 25.4% for Q2 FY27, compared with 26.6% in Q2 FY26 and 26.5% in Q1 FY27. The figures are standalone; the company also filed half-year results and an investor presentation, but no separate consolidated quarter comparison was provided in the supplied data.

What changed in SBFC Finance's costs and profit?

Total expenses increased 36.1% from ₹265.12 crore in Q2 FY26 to ₹360.88 crore in Q2 FY27, outpacing the 33.0% rise in revenue. Finance costs were the largest reported increase, rising 52.0% by ₹67.01 crore to ₹195.97 crore; employee cost rose 20.9% by ₹14.99 crore to ₹86.76 crore.

Other expenses increased ₹3.21 crore or 11.3% from ₹28.37 crore to ₹31.58 crore, while depreciation rose ₹0.05 crore or 1.0% to ₹5.13 crore. Other income increased ₹0.06 crore or 27.3% from ₹0.22 crore to ₹0.28 crore. There was no exceptional item.

Against Q1 FY27, total expenses rose ₹43.44 crore or 13.7%, mainly because finance costs increased ₹43.48 crore or 28.5% to ₹195.97 crore. Employee cost fell ₹2.10 crore or 2.4%, while tax expense rose ₹2.91 crore or 6.6% to ₹46.91 crore. The filings did not state a reason for the higher finance costs.

How did the first half of FY27 go?

For H1 FY27, revenue from operations was ₹1,037.85 crore, up ₹238.63 crore or 29.9% from ₹799.22 crore in H1 FY26. Total income rose 29.9% to ₹1,038.23 crore from ₹799.55 crore, while profit before tax increased 27.8% to ₹359.90 crore from ₹281.59 crore.

H1 FY27 net profit was ₹269.00 crore, up ₹58.97 crore or 28.1% from ₹210.03 crore in H1 FY26. Basic EPS increased 25.9% to ₹2.43 from ₹1.93. The statutory auditors issued an unmodified limited review report on the unaudited results.

What do the balance sheet and cash flow show?

Total assets rose to ₹13,684.72 crore as on 30 September 2026 from ₹11,085.40 crore as on 31 March 2026, while total equity increased to ₹4,049.10 crore from ₹3,725.15 crore. Cash and cash equivalents were ₹681.40 crore, compared with ₹481.04 crore at the previous balance sheet date. A borrowings figure was not provided.

H1 FY27 operating cash flow was negative ₹965.08 crore, against negative ₹835.60 crore in H1 FY26. Investing cash flow was negative ₹1,020.34 crore, compared with negative ₹23.55 crore, while financing cash flow was ₹2,185.77 crore against ₹922.44 crore. Capital expenditure was ₹10.34 crore, compared with ₹4.91 crore.

How has SBFC Finance done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis, as did profit. Revenue increased from ₹333.16 crore in Q3 FY25 to a period high of ₹546.39 crore in Q2 FY27, while net profit moved from ₹88.08 crore to a period high of ₹138.87 crore over the same span.

Both revenue and profit reached their lowest levels in the supplied series in Q3 FY25 and their highest levels in Q2 FY27. The latest quarter extended the upward direction, with revenue at ₹546.39 crore and net profit at ₹138.87 crore. EBITDA margin figures were not provided for the quarterly trend.

What else did the company announce?

On 24 October 2026, the board approved the unaudited financial results for the quarter and half year ended 30 September 2026, together with an unmodified limited review report, regulatory disclosures, a security-cover certificate, issue-proceeds statements and related-party transactions.

The same-day investor presentation reported AUM of ₹12,592 crore, up 6% from the previous quarter and 27% year on year. It also reported PAT of ₹139 crore for the quarter, gross NPA of 2.6%, a cost-to-AUM ratio of 4.1%, RoA of 4.6% and RoE of 15.0%. The supplied same-day filings did not announce a dividend, fund raise or appointment.

What did SBFC Finance's management say?

Management retained quarterly AUM growth guidance of 5%-7% from Q3 FY27 onward and FY27 operating-expense reduction guidance of 25 bps. The company expects credit cost to stabilise around 1.37% and potentially decline, while 0+ delinquencies are expected to remain between 8% and 9.2%.

Management expects short-term ROA to remain above 4.5%, but said sustaining 4.55%-4.6% over the long term would be difficult as leverage rises. Gold loans are expected to remain around 20%-25% of AUM, possibly rising to 25%, without chasing high-volume growth.

Management identified gold-loan competition, rising loan-to-value norms, sharp declines in gold prices, elevated MSME delinquencies, regional stress and a draft regulatory circular as risks. It said variable-asset repricing should offset higher funding costs, and no material spread compression is expected from the current rate environment.

Executive Vice Chairman Aseem Dhru said: “In a world of constant flux and chaos, we are trying our best to continue to deliver boring results.” MD and CEO Mahesh Dayani cautioned: “While this is a welcome outcome, please do not pencil in 9.6% in your models as the new norm, since competitive intensity in gold is rising and some pricing rationalisation is likely.”

How did SBFC Finance shares react?

The filing appeared after market hours. From the price when it appeared, the stock was down 1.7% after five minutes, 2.1% after 15 minutes and 1.7% after 30 minutes. On the reaction day, it closed 4.0% below the previous close, against a 0.3% fall for the median other NBFC stock.

By the next day’s close, SBFC Finance was up 4.3% from its pre-results close, and by the five-session close it was up 8.9%. The industry median was unchanged on the next day and up 1.4% over five sessions, while the Nifty Microcap 250 was up 2.1% and 1.8% over the same periods.

Earlier results-day moves were mixed: SBFC Finance fell 12.0% on 24 January 2026 and 1.8% on 25 July 2026, but rose 3.1% on 1 November 2025 and 1.7% on 26 July 2025. Other recorded reaction-day moves were 0.4% on 25 April 2026, 0.7% on 26 April 2025, negative 2.0% on 25 January 2025 and 3.0% on 26 October 2024.

How did other Non Banking Financial Company (NBFC) companies do?

Among 77 Non Banking Financial Company peers compared for Q2 FY27, the median revenue growth was 21.4%. Of the other companies, 48 grew more slowly than SBFC Finance and 29 grew faster. SBFC Finance’s revenue growth of 33.0% was above the peer median.

Profit was higher for 56 of the 85 peers whose profit was compared. The peer data, as of 4 November 2026, covered companies that had filed for the quarter; SBFC Finance is not included in the peer-growth or peer-profit counts.