SBFC Finance: Business Overview & Financial Analysis
SBFC Finance is a non-banking financial company (NBFC) headquartered in Mumbai, Maharashtra. Promoted by SBFC Holdings Pte. Ltd. and Arpwood Group, the institution provides credit facilities to micro, small, and medium enterprises (MSMEs) alongside self-employed individuals across India. Operating a physical branch network spanning 16 states and Union Territories, SBFC Finance offers secured MSME loans, loan against property (LAP), gold loans, and working capital credit solutions to underserved retail and commercial accounts.
Assets Under Management & Portfolio Mix of SBFC Finance (Q1 FY2027)
SBFC Finance structures its loan portfolio around secured MSME credit, loans against property, and liquid gold loan facilities.
- Secured MSME Loans (LAP) Share – 84.5% of Total AUM
- Gold Loans Share – 12.8% of Total AUM
- Other Personal & Working Capital Loans Share – 2.7% of Total AUM
- Total Assets Under Management (AUM) – Rs 7,850.40 crore (+28.2% YoY)
- Average Ticket Size (Secured MSME Loans) – Rs 10.50 lakh
- Average Ticket Size (Gold Loans) – Rs 0.95 lakh
- Loan-to-Value (LTV) Ratio (Secured MSME) – 48.5%
Assets Under Management expanded 28.2% year-on-year to Rs 7,850.40 crore in Q1 FY2027. Secured MSME loans constitute over eight-tenths of total credit dispatches, maintaining a low average Loan-to-Value (LTV) ratio of 48.5% backed by self-occupied residential property collateral.
Borrowing Profile & Liabilities Mix of SBFC Finance (Q1 FY2027)
SBFC Finance diversifies its long-term debt liabilities across commercial banks, development financial institutions, and capital market debt.
- Domestic Commercial Bank Term Loans Share – 58.2% of Total Borrowings
- Non-Convertible Debentures (NCDs) Share – 22.5% of Total Borrowings
- Direct Assignment (DA) & Co-Lending Share – 12.8% of Total Borrowings
- Refinance Facilities (NHB / SIDBI) Share – 6.5% of Total Borrowings
- Total Outstanding Debt Borrowings Base – Rs 5,450.00 crore
- Average Cost of Borrowings – 8.85% (compressed 15 bps YoY)
Domestic commercial bank term loans and non-convertible debentures fulfill over eight-tenths of overall funding requirements. Average borrowing costs compressed to 8.85% in Q1 FY2027, supported by 'CARE A+ / Stable' and 'ICRA A+ / Stable' long-term credit ratings.
Branch Footprint & Geographic Distribution of SBFC Finance (Q1 FY2027)
SBFC Finance manages an extensive branch architecture across urban, semi-urban, and rural commercial centers.
- Total Operational Branch Network – 185 operational branches
- Geographic Footprint Coverage – Active presence across 16 states and Union Territories
- South Region Share – 34.5% of Total AUM
- West Region Share – 32.0% of Total AUM
- North Region Share – 21.5% of Total AUM
- East Region Share – 12.0% of Total AUM
Branch operations are anchored across Southern and Western Indian states, which generate two-thirds of operational loan dispatches. Branch additions focus on expanding network density in Tier-2 and Tier-3 commercial towns in North and East India.
Asset Quality & Provisioning Metrics of SBFC Finance (Q1 FY2027)
SBFC Finance tracks Gross Stage 3 non-performing assets, collection efficiencies, and credit provisioning across its branch network.
- Gross Stage 3 Assets (GNPA) Ratio – 1.38% (improved 18 bps YoY)
- Net Stage 3 Assets (NNPA) Ratio – 0.68% (improved 12 bps YoY)
- Provision Coverage Ratio (PCR) – 51.20%
- Monthly Collection Efficiency Rate – 97.80% across active accounts
- Credit Cost Ratio – 0.52% (Annualised)
Gross Stage 3 assets improved to 1.38% as of June 30, 2026, supported by monthly collection efficiency holding at 97.80%. In-house field collection teams and self-occupied residential collateral help keep annualised credit costs at 0.52%.
Latest Quarterly Financial Performance of SBFC Finance (Q1 FY2027)
SBFC Finance recorded top-line interest income expansion and net profit growth during the first quarter of FY2027.
- Total Revenue from Operations – Rs 312.50 crore (+26.8% YoY)
- Net Interest Income (NII) – Rs 185.40 crore (+28.2% YoY)
- Operating EBITDA – Rs 142.80 crore (+30.5% YoY)
- Standalone Net Profit After Tax (PAT) – Rs 82.50 crore (+32.4% YoY)
- Net Interest Margin (NIM) – 9.45% (+22 bps YoY)
First-quarter Net Interest Income expanded 28.2% year-on-year to Rs 185.40 crore, supported by 28.2% growth in AUM. Standalone Net Profit After Tax reached Rs 82.50 crore, while Net Interest Margins held firm at 9.45%.
Standalone Annual Financial Performance of SBFC Finance (FY2026)
SBFC Finance delivered record operational turnover and net profitability for full financial year FY2026.
- Full Year Total Revenue from Operations – Rs 1,125.40 crore (+28.5% YoY)
- Full Year Net Interest Income (NII) – Rs 685.20 crore (+29.8% YoY)
- Full Year Operating Profit – Rs 512.40 crore (+31.2% YoY)
- Standalone Net Profit After Tax (PAT) – Rs 288.50 crore (+35.4% YoY)
- Return on Equity (ROE) – 11.8%
- Return on Assets (ROA) – 3.85%
Full-year operating turnover crossed Rs 1,125 crore in FY2026, as standalone Net Profit After Tax expanded 35.4% to Rs 288.50 crore. Operational execution was supported by secured MSME volume growth, stable yield realisations, and credit cost discipline.
Capital Structure & Balance Sheet Health Ratios of SBFC Finance (Q1 FY2027)
SBFC Finance operates a well-capitalized balance sheet with high Tier-I capital reserves and low financial leverage.
- Capital Adequacy Ratio (CRAR) – 34.50% (Tier-I CRAR: 33.80%)
- Total Consolidated Net Worth Base – Rs 2,580.00 crore
- Debt to Equity Ratio – 2.11x
- Credit Rating Status – 'CARE A+ / Stable' and 'ICRA A+ / Stable'
- Liquidity Buffer Reserve – Rs 650.00 crore
The institution closed Q1 FY2027 with a capital adequacy ratio of 34.50%, well above statutory regulatory mandates. Total equity net worth expanded to Rs 2,580.00 crore, maintaining debt to equity at a conservative 2.11x.
Management Commentary & Strategic Outlook of SBFC Finance (Q1 FY2027 Concall)
Management guidance outlines strategic priorities centered on AUM volume scaling, branch network expansion, and risk management.
- Management targets achieving a 25%–28% annual AUM growth trajectory over the FY2027–FY2029 period.
- Net Interest Margins (NIM) are guided to sustain within the 9.25%–9.50% corridor through risk-based pricing.
- Branch network expansion will add 20–25 net new operational branches annually in Tier-2 and Tier-3 commercial markets.
- Co-lending partnerships with public sector banks will be scaled to enrich fee-based income realisations.
- Credit costs are projected to remain range-bound under 0.60% of average AUM.
Management anticipates steady credit demand among self-employed MSME borrowers to support loan dispatches. Operational focus centers on expanding physical branch density in North and East India, deepening co-lending partnerships, and maintaining asset quality discipline.
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Sources & References
- SBFC Finance Q1 FY2027 Unaudited Financial Results Disclosures & Press Release (July/August 2026)
- SBFC Finance Q1 FY2027 Investor Presentation (July/August 2026)
- SBFC Finance Q4 & Full Year FY2026 Audited Financial Disclosures (May 2026)
- BSE Limited & National Stock Exchange of India (NSE) Corporate Filings for SBFC Finance
- Ticker Finology SBFC Finance Page
Disclaimer
The information presented above on SBFC Finance has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker SBFC Finance page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.