Q4 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 11,270 crores.
- The company successfully reduced its cost of borrowing by 83 basis points year-over-year, benefiting from a favorable repo environment.
- SBFC Finance Ltd expanded its branch network significantly, adding 46 branches in FY26, bringing the total to 251 branches.
- The company's return on average AUM improved to 4.57%, with a return on average tangible equity of 14.48% for the quarter.
- SBFC Finance Ltd maintains a strong capital adequacy ratio of 32.8%, providing a solid foundation for future growth.
- The company faces challenges from rising inflation and interest rates, which could impact its cost structure and profitability.
- SBFC Finance Ltd's GNPA stands at 2.61%, indicating room for improvement in asset quality.
- The company is cautious about potential risks from external factors such as fuel price volatility and adverse weather conditions.
- Despite growth, the company's credit cost remains at 1.38%, with limited expected improvement in the near term.
- SBFC Finance Ltd's reliance on direct sourcing models may limit scalability compared to competitors using indirect channels.
Ladies and gentlemen, good day and welcome to SBFC Limited Q4 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Renish Bhuva from ICICI Securities. Thank you, and over to you, Mr. Bhuva.
Thank you. Good morning, everyone, and welcome to SBFC Q4 FY26 earnings call. On behalf of ICICI Securities, I would like to thank SBFC management team for giving us the opportunity to host this call. Today we have with us the entire top management team of SBFC represented by Mr. Aseem Dhru, Executive Vice-Chairman; Mr. Mahesh Dayani, Managing Director and CEO; Mr. Narayan Barasia, CFO; Mr. Sanket Agarwal, Chief Strategy Officer; and Mr. Rajiv Thakker, Chief Risk Officer.
I will now hand over the call to Mr. Aseem for his opening remarks, and then we'll open the floor for Q&A. Over to you, sir.
Thank you.
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