SBFC Finance Ltd(SBFC)

NSE: SBFCBSE: 543959

₹ 80.64+0.59%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 8,943 crNext results: 24 Oct 2026Website: www.sbfc.comUpdated: 24 Oct 2026

About

SBFC Finance Limited is a non-banking financial company focused exclusively on secured MSME loans and gold loans, serving self-employed and small-business borrowers across India. As of Q1 FY27, total AUM stood at ₹11,922 crore, growing 27% year-on-year, with FY26 PAT of ₹451 crore. The FY26 annual report describes SBFC as one of India's newer ₹10,000 crore NBFC franchises, with 251 branches in 199 cities at March 2026.^[1][2]

Products and loan book mix

Secured MSME loans of ₹5 lakh to ₹30 lakh to proprietors, traders and micro-entrepreneurs, each secured against residential or commercial property.^[2]
MSME loan book grew from ₹7,249 crore in FY2025 to ₹8,873 crore in FY2026.^[2]
Gold AUM grew 63% YoY and 22% QoQ to ₹2,374 cr at March 2026, lifting gold's share of total AUM to 21% in Q4 FY26.^[3]
Co-origination disbursement share reset to 10% in Q1 FY27 from 16% after an RBI circular barred banks from accepting collateral on MSME loans below ₹20 lakh ticket size, effective April 1, 2026.^[1]
SBFC also distributes insurance products under a Corporate Agent (Composite) licence from IRDAI.^[2]

Branch network and reach

Branch network reached 251 branches in 199 cities at March 2026; 46 branches were added in FY26 versus prior guidance of 25, mostly in Q4 FY26.^[3][2]
Branch mix as of FY26: South 78, North 76, West 58, East 39. AUM split: South 35.6%, North 34.2%, West 16.0%, East 14.2%.^[2]
Approximately 220 of 251 branches offered gold loans as of March 2026.^[3]
In FY26, branches older than 36 months averaged about ₹66 crore AUM, vs ₹26 crore for 12-36-month branches and ₹7 crore for newer ones.^[2]
Branch expansion in FY27 is limited to 10-15 new branches, with focus on maturing recently opened branches.^[1]
Employees grew from 4,294 to 5,055 in FY26, an 18% increase.^[2]

Customers and sourcing

Active customers grew from about 1,64,220 to 2,02,683 by March 2026, a 23% increase.^[2]
Borrowers are self-employed owners of small trading, services and retail businesses in semi-urban markets, often first-time commercial borrowers, earning ₹40,000-₹1,50,000 a month.^[2]
All sourcing was in-house in FY26, with no channel partners or DSAs.^[2]

Key operating metrics

NIM was 10.68% in Q1 FY27. Spread rose 81 bps YoY to 9.48% as cost of borrowing fell 90 bps YoY to 8.42%; yield was 17.90% (-9 bps YoY).^[1]
Cost of borrowing fell to 8.85% in FY2026.^[2]
MSME disbursements in Q1 FY27 were ₹809 cr, up 3% QoQ.^[1]
Opex-to-AUM was 4.29% in Q1 FY27, down 30 bps YoY but up 36 bps QoQ on costs of new Q4 FY26 branches and salary increments.^[1]
Over three years since listing, cumulative opex-to-AUM reduction reached 161 bps against 150 bps guided at IPO.^[3]
Return on average AUM was 4.53% in Q1 FY27 (+3 bps YoY); return on average tangible equity was 14.73%, up 120 bps YoY.^[1]

Asset quality

Gross NPA (Stage 3) was 2.66% in Q1 FY27, down 12 bps YoY; provision coverage ratio was 42.22%.^[1]
Credit cost was 1.45% in Q1 FY27, up 34 bps YoY; management guided 1.4-1.5% through Q2 and Q3 FY27.^[1]
Stage 2 ECL provisioning rate was raised to 16% from 6% in Q1 FY27, taking total provisioning to assets to 1.91%.^[1]
Login-to-disbursal conversion fell to 34% from 42% in Q1 FY27 as the sub-₹10 lakh household segment showed leveraged stress.^[1]

Capital and funding

CRAR was 31.95% in Q1 FY27, with tangible net worth of ₹3,613 cr and closing liquidity of ₹1,864 cr.^[1]
Funding in FY26 came from bank loans, ECBs, NCDs, co-origination, securitisation and DFIs such as IFC and BII.^[2]
The foreign currency term loan (FCNRB-TL) is fully hedged, per the FY26 annual report.^[2]
Management said in Q4 FY26 that current capital supports AUM growth to about ₹18,000-19,000 cr before an equity raise is needed.^[3]
Promoter Clermont Group held 52.35% of shares, per the FY26 annual report.^[2]

Technology

Four in-house platforms run the lending lifecycle as of FY26: Sahayak (onboarding), Samarth (AI data platform), Sangrah (reporting) and Sahyogi (servicing).^[2]

Credit ratings

India Ratings upgraded bank facilities to IND AA-/Positive in September 2026; NCDs affirmed at IND AA-/Positive.^[4]
Commercial paper was rated CARE A1+, per the FY26 annual report.^[2]
India Ratings affirmed securitised notes of Prime Trust SBL Aug 22 (Series A1) at IND AA(SO)/Stable in September 2026.^[5]
On 14 Oct 2026, India Ratings affirmed Prime Trust LAP Aug 22 securitisation notes: Series A1 at IND AA(SO)/Stable and Series A2 at IND BBB-(SO)/Stable.^[6]

Market Cap

₹8,943 Cr

High / Low

₹123 / 80

Stock P/E

27.8

Price / Book

3.0

Book Value

₹34

EPS

₹4.1

No. of Shares

110.64 Cr

ROE

13.0%

Debt / Equity

1.92

Sales

₹1,679 Cr

Net Profit

₹451 Cr

Promoter holding

52.2%

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