Q3 2026 SBFC Finance Ltd Earnings Call Transcript
Key Points
- SBFC Finance Ltd (BOM:543959) reported a 29% year-over-year growth in assets under management (AUM), reaching INR 10,478 crore.
- The company achieved a 34% year-over-year increase in profit after tax (PAT), amounting to INR 118 crore for the quarter.
- The capital adequacy ratio remains strong at 31.7%, indicating a robust financial position.
- The return on average tangible equity improved from 14.09% in Q2 to 14.56% in Q3, reflecting enhanced profitability.
- SBFC Finance Ltd (BOM:543959) has expanded its branch network by adding 10 new branches, bringing the total to 230 branches.
- The company is experiencing a cautious outlook due to concerns over increasing household debt and leverage among borrowers.
- Disbursement volumes have declined, particularly in the Southern and Eastern markets, due to tightened credit filters and cautious lending practices.
- The provision coverage ratio (PCR) for Stage 3 assets remains flat, indicating potential concerns over asset quality.
- The yield for the quarter decreased by 23 basis points on a quarter-over-quarter basis, partly due to a shift away from riskier customers.
- The company is facing challenges in maintaining loan growth due to a weakening individual balance sheet and increased competition in the lending market.
Ladies and gentlemen, good day, and welcome to SBFC Limited Q3 FY26 earnings call hosted by ICICI Securities Limited. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Chintan Shah from ICICI Securities Limited. Thank you, and over to you, sir.
Yes. Thank you, Igra. Good evening, everyone, and welcome to the Q3 FY26 results conference call of SBFC Finance Limited. I would like to thank the management for giving us the opportunity to host the call. We have from the senior management, Mr. Aseem Dhru, Managing Director and Chief Executive Officer; Mr. Mahesh Dayani, Executive Director; Mr. Narayan Barasia, Chief Finance Officer; Mr. Sanket Agarwal, Chief Strategy Officer; and Mr. Rajiv Thakker, Chief Risk Officer.
For the call, we will have an opening remarks from the MD sir, post which, we will open the floor for questions. So now without much ado, I will transfer over the call to MD sir. Thank you, and over to you, sir.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
