Q2 2026 SBI Cards and Payment Services Ltd Earnings Call Transcript
Key Points
- SBI Cards and Payment Services Ltd (BOM:543066) reported a 13% year-over-year growth in total revenue, reaching 5,136 crore for the quarter.
- The company achieved a record high in total spends during the quarter, amounting to 17,063 crore, marking a 31% year-over-year increase.
- Retail spend grew by 17% year-over-year, reaching 89,611 crore, with strong growth across online and offline categories.
- SBI Cards launched three new co-branded credit cards with Flipkart, PhonePe, and Indigo, enhancing customer offerings and partnerships.
- The company's asset quality improved, with gross NPA reducing to 2.85% from 3.07% in the previous quarter, and a reduction in Stage 3 stock.
- Operating costs increased due to higher cost campaigns and offers, resulting in a cost-to-income ratio of 56.8%.
- The yield for the quarter decreased to 16.5% from 17% in the previous quarter, impacted by higher transactive volumes.
- Profit after tax grew by only 10% year-over-year, reaching 445 crore, which is lower than the revenue growth rate.
- The revolver rate showed a downward bias, indicating a potential challenge in maintaining interest-earning assets.
- The company's ROA and ROAE declined year-over-year, with ROA at 2.6% and ROAE at 12.1%, reflecting pressure on profitability metrics.
Ladies and gentlemen, good day and welcome to the SBI cards and Payment Services Limited Q2 FY26 earnings conference call.
I now hand the conference over to Ms. Salila Pandey, MD and CEO SBI cards.
Thank you and over to you, Ms. Salila Pandey.
Thank you, Sagar.
A very good evening to everyone present on the call today.
Along with the board members and management of SBI card. I extend a warm welcome and sincere thanks for joining us.
India continues to be one of the world's most resilient and fastest growing economies even as the global landscape remains marked by uneven recovery and geopolitical uncertainty.
According to RBI's Monetary Policy Committee meeting held in October of 2025, the real GDP growth forecast for financial year '26 has been revised upwards to 6.8%, underscoring the economy's strong momentum.
The recent GST reforms coupled with optimistic festive demands have stimulated
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