SBI Cards and Payment Services Q2 FY27 results: net profit up 74.8% to ₹777.60 crore, revenue up 3.6%

How did SBI Cards and Payment Services perform in Q2 FY27?

Standalone revenue from operations for Q2 FY27 was ₹5,141 crore, up 3.6% from ₹4,961 crore in Q2 FY26 and 2.0% from ₹5,041 crore in Q1 FY27. Total income was ₹5,302 crore, compared with ₹5,136 crore in Q2 FY26 and ₹5,205 crore in Q1 FY27. The company did not report EBITDA or an EBITDA margin for the quarter.

Profit before tax rose 74.4% year on year to ₹1,046 crore from ₹599.77 crore and increased 17.1% from ₹893.13 crore in Q1 FY27. Profit after tax rose 74.8% to ₹777.60 crore from ₹444.77 crore a year earlier and 17.0% from ₹664.44 crore in the previous quarter. Basic EPS was ₹8.17, compared with ₹4.67 and ₹6.98, respectively.

The profit after tax margin was 15.1%, up 6.1 percentage points from 9.0% in Q2 FY26 and 1.9 percentage points from 13.2% in Q1 FY27. The results were standalone; no consolidated figures were provided in the supplied information.

What changed in SBI Cards and Payment Services' costs and profit?

Total expenses fell 6.2% year on year to ₹4,256 crore from ₹4,537 crore and declined 1.3% from ₹4,312 crore in Q1 FY27. Finance costs rose 3.6% to ₹787.27 crore from ₹760.07 crore, employee cost rose 14.6% to ₹180.68 crore from ₹157.62 crore, and operating and other expenses rose 3.9% to ₹2,102 crore from ₹2,022 crore. Depreciation fell 7.1% to ₹32.54 crore from ₹35.01 crore.

Impairment on financial instruments fell to ₹819.37 crore from ₹1,292.72 crore in Q2 FY26 and from ₹947.68 crore in Q1 FY27. Other income declined 8.2% year on year to ₹161.14 crore from ₹175.50 crore and fell 2.2% from ₹164.81 crore in the previous quarter. There was no exceptional item. Tax expense rose 73.0% to ₹268.12 crore from ₹155 crore, and increased 17.2% from ₹228.69 crore in Q1 FY27.

How did the first half of FY27 go?

For H1 FY27, revenue from operations was ₹10,181 crore, up 3.5% from ₹9,838 crore in H1 FY26, while total income rose 3.3% to ₹10,505 crore from ₹10,169 crore. Profit before tax increased 43.8% to ₹1,939 crore from ₹1,348 crore. Profit after tax rose 44.1% to ₹1,442.06 crore from ₹1,000.74 crore.

Basic EPS for the first half increased 44.0% to ₹15.15 from ₹10.52. Total expenses fell to ₹8,566 crore from ₹8,820 crore, while impairment on financial instruments fell to ₹1,765.99 crore from ₹2,644.27 crore. The first-half figures are standalone.

What do the balance sheet and cash flow show?

Total assets stood at ₹71,102.31 crore on 30 September 2026, compared with ₹66,327.79 crore on 31 March 2026. Total equity was ₹17,172.08 crore against ₹15,725.50 crore at the previous balance-sheet date, while cash and cash equivalents rose to ₹3,560.99 crore from ₹2,103.67 crore. A borrowings figure was not included in the supplied balance-sheet data.

For H1 FY27, operating cash flow was an outflow of ₹1,014.27 crore, compared with an outflow of ₹4,210.25 crore in H1 FY26. Investing cash flow was an outflow of ₹1,382.88 crore against an inflow of ₹513.51 crore, while financing cash flow was an inflow of ₹3,854.47 crore compared with ₹4,311.10 crore. Capital expenditure was ₹16.45 crore, compared with ₹16.66 crore.

How has SBI Cards and Payment Services done over the last 8 quarters?

Revenue from operations increased year on year in each of the last seven quarters, while profit after tax increased year on year in each of the last five quarters. Revenue reached its highest level in the reported series at ₹5,141 crore in Q2 FY27. Its lowest level was ₹4,619 crore in Q3 FY25.

Profit after tax reached ₹777.60 crore in Q2 FY27, the highest level in the reported series, compared with its lowest level of ₹383.23 crore in Q3 FY25. Revenue and profit both moved higher from Q1 FY27, when revenue was ₹5,041 crore and profit after tax was ₹664.44 crore. EBITDA margin figures were not provided in the quarterly trend.

What else did the company announce?

The board approved the unaudited standalone financial results for the quarter and half year ended 30 September 2026 on 23 October 2026. The company also filed its investor presentation for the quarter, and the same-day presentation reported a gross credit cost of 5.6% and gross NPA of 1.90%.

ICRA reaffirmed its ratings on non-convertible debentures, subordinated debt, bank lines, commercial paper and a term loan. It also reaffirmed and withdrew the rating for non-convertible debentures with a previous rated amount of ₹800 crore because no amount was outstanding. The filings did not announce a dividend, fund raise or appointment.

What did the auditors point out?

The joint statutory auditors issued a limited review report and drew attention to Note 9 of the financial statements. The emphasis of matter referred to an additional impairment allowance of ₹100 crore, over and above the impairment allowance under the approved expected credit loss model, for the reason stated in that note.

The auditors stated that their conclusion on the financial statements was not modified in respect of this matter. The supplied excerpt did not report a qualified opinion or a going-concern qualification.

What did SBI Cards and Payment Services' management say?

Management maintained FY27 guidance for more than 1 million new accounts per quarter, retail-spend growth in the mid-to-high teens, a cost-to-income ratio of 57–59% and gross credit cost around 6%; management was comfortable within a 5.5–6% range. It said receivables were expected to grow from Q3 FY27 and through the second half, without giving a numerical target. The CEO said, “We will continue to maintain quarterly run rate of more than 1 million new accounts during the year.”

Management said gross credit cost improved to 5.6% and gross NPA to 1.90%. It expected festive spending in Q3 to convert into EMIs and receivables, while NIM was expected to remain stable or range-bound despite higher funding costs. The CEO said, “With disciplined customer acquisition, prudent portfolio management, we expect gross credit costs to stay around 6% for the current financial year, subject to any adverse impact of the ongoing geopolitical crisis on asset quality.”

Management identified a prolonged West Asia conflict, higher energy prices, inflation, interest rates, household stress and funding costs as risks. It said festive and transactor-balance volatility could make near-term receivables growth uncertain, and did not provide FY28 guidance for receivables, NIM or cost-to-income. The CFO said, “The entire 50 basis points, even if it comes in, in this particular year, it will come and hit us with a lag.”

How did SBI Cards and Payment Services shares react?

The filing appeared during market hours. SBI Cards was down 3.9% after five minutes, 1.7% after 15 minutes and 0.3% after 30 minutes. The stock closed 3.7% below its pre-results close on the reaction day and was down 4.9% by the next day's close, measured cumulatively from that same close.

By the fifth session after the results, the stock was down 7.3% from its pre-results close. The median move for other NBFC stocks was down 1.5% on the reaction day, down 1.8% by the next close and down 0.7% by the fifth session. SBI Cards underperformed that industry median by 2.1 percentage points on the reaction day, 3.1 percentage points by the next close and 6.6 percentage points by the fifth session.

Earlier reaction-day moves were 4.7% on 24 July 2026, 0.4% on 27 April 2026, minus 2.4% on 28 January 2026, minus 4.1% on 24 October 2025 and minus 6.3% on 25 July 2025.

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

Among 77 other NBFC companies compared for the quarter, the median revenue growth was 21.6%. Twenty peers grew more slowly than SBI Cards and 57 grew faster than SBI Cards, whose revenue growth was 3.6%. Among 85 peers for which profit was compared, 56 reported higher profit.