SBFC Finance Ltd (NSE:SBFC)

Q2 2026 SBFC Finance Ltd Earnings Call Transcript

Nov 1, 2025 / 10:30 AM GMT

Transcript

Key Points

Positve

SBFC Finance Ltd (BOM:543959) reported a strong return on equity (ROE) of 14% for the quarter, indicating efficient use of shareholder funds.
The company achieved a significant milestone by crossing 10,000 crore in assets under management (AUM), reflecting robust growth.
Incremental borrowing costs have decreased by 80 basis points, which is expected to positively impact future profitability.
The company's cost of operations has reduced by 112 basis points since its IPO, demonstrating improved operational efficiency.
SBFC Finance Ltd (BOM:543959) has maintained a high capital adequacy ratio of 34.05%, ensuring financial stability and capacity for future growth.

Negative

The company is facing asset quality challenges, particularly in Karnataka, where political and climate risks have impacted the portfolio.
Credit costs have increased to 1.29%, indicating rising expenses related to managing loan defaults.
The 1+ days past due (DPD) bucket has been inching up for several quarters, signaling potential stress in the loan portfolio.
SBFC Finance Ltd (BOM:543959) has tightened its credit filters, which has led to a 10% drop in loan approval rates, potentially impacting growth.
The company has stopped lending below 7 lakhs due to stress in lower ticket size loans, which may limit market opportunities.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SBFC.NS - SBFC Finance Ltd
Q2 2026 SBFC Finance Ltd Earnings Call
Nov 01, 2025 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to SPFC Finance Limited. You do an H1 FY26 earnings conference call hosted by ICICI Securities Limited.

As a reminder, all participant lines will be the lesson only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing, then 0 on your attached on phone. Please note that this conference is being recorded.

I now hand the conference over to Reish from ICIC Securities Limited.

Thank you and over to you, sir.

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Unidentified_2 [2]
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