Q3 2026 SBI Cards and Payment Services Ltd Earnings Call Transcript
Key Points
- SBI Cards and Payment Services Ltd (BOM:543066) reported a 45% year-over-year growth in profit after tax, driven by improved gross credit cost and lower cost of funds.
- The company achieved a record high in retail spends, reaching INR91,962 crores, marking a 14% year-over-year growth.
- SBI Cards continues to be India's second-largest credit card issuer with a market share of 18.8% in cards-in-force.
- The company has formed strategic partnerships with major players like Amazon, Flipkart, and Apple, enhancing customer engagement and shopping experiences.
- SBI Cards maintained a strong capital adequacy ratio of 24.4%, reflecting a robust liquidity position.
- The company's cost-to-income ratio increased to 56.8%, indicating higher operating costs due to increased corporate pass back and a one-time increase in gratuity and leave encashment expenses.
- There was a moderate growth in new account acquisitions, with a shortfall of 30,000 to 50,000 cards compared to targets.
- The revolver rate showed a downward bias, impacting the yield, which decreased from 16.5% to 16.3% quarter-over-quarter.
- Asset growth was lower than expected, with receivables growing only 4% year-over-year, raising concerns about achieving the previously guided 10% to 12% growth.
- The net interest margin slightly decreased to 11% from 11.2% in the previous quarter, reflecting pressure on profitability.
Ladies and gentlemen, good day, and welcome to the SBI Cards and Payment Services Limited Q3 FY26 earnings conference call. (Operator Instructions)
I now hand the conference over to Ms. Salila Pande, MD and CEO, SBI Cards. Thank you, and over to you, Ms. Salila Pande.
Thank you, Sagar. Good evening to everyone joining us on the call today as we present Q3 FY26 financial results. I would like to extend a warm welcome on behalf of the Board and the management team at SBI Card.
Amidst the ongoing geopolitical uncertainties, India continues to demonstrate remarkable resilience and sustained momentum. With GDP currently valued at USD4.18 trillion, India is firmly on track to become the world's third largest economy. GDP is projected to reach USD7.3 trillion by 2030, underscoring the scale of growth opportunities ahead. This growth is underpinned by a sustained upward trajectory in domestic demand, driven by supportive tax reforms, robust consumer demand
| 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
