SBFC Finance delivered robust financial performance in Q1 FY27, with standalone net profit jumping 28.97% year-on-year to ₹130 crore compared to ₹100 crore in Q1 FY26. According to reports from Business Standard, the company's total income increased 26.52% YoY to ₹491.57 crore in the quarter ended June 30, 2026. Gross profit for the quarter stood at ₹326 crore, representing a 25.26% increase from ₹260 crore in Q1 FY26. Profit before tax stood at ₹174.12 crore, representing a 28.30% increase from ₹135.71 crore in the corresponding quarter of the previous year. ICICI Securities has maintained a buy rating with a target price of ₹130 based on a 3x Sep'27E BVPS, citing the company's improved borrowing profile and strengthening franchise.
The company's net interest margin (NIM) to average assets under management (AUM) stood at 10.68% in Q1 FY27, slightly up from 10.25% in Q1 FY26. As reported by Business Standard, the pre-provisioning operating profit for Q1 FY27 stood at ₹216 crore, registering a 34.4% increase from ₹161 crore in Q1 FY26. The company made a total ECL provision of ₹204 crore for the quarter ended June 30, 2026. The gross profit margin of 66.4% for the quarter demonstrates strong operational efficiency in the MSME and secured lending business. ICICI Securities notes that the company has achieved steady operating leverage with cost-to-AUM down >40bps YoY and superior customer onboarding capabilities.
According to Business Standard, gross Non-Performing Assets (NPA) stood at 2.66% as of June 30, 2026, compared to 2.78% as of June 30, 2025 and 2.61% as of March 31, 2026. The net non-performing assets (NPA) stood at 1.55% as of June 30, 2026, down from 1.57% as of June 30, 2025, but higher than 1.54% recorded on March 31, 2026. Assets under management (AUM) grew 27% YoY to ₹11,922 crore, while secured MSME disbursal value stood at ₹809 crore in Q1 FY27. The revenue growth of 26.52% YoY to ₹491 crore reflects strong underlying demand in the MSME and secured lending segments. ICICI Securities highlights that credit cost remained steady at ~145bps in Q1FY27 despite industry-level headwinds, with management expecting full-year FY27 credit cost to remain stable within the 140-150bps range.
As reported by Business Standard, SBFC Finance specializes in secured MSME loans, loans against gold, affordable home loans, and loan management. Following the Q1 FY27 results announcement, the stock showed mixed performance with SBFC Finance share price moving 0.29% from ₹92.18 to ₹92.45 between July 24-27, 2026. The immediate market reaction reflects investor confidence in the company's strong quarterly performance and profit delivery that keeps the earnings narrative intact. The stock movement suggests positive sentiment toward the company's continued focus on secured lending segments and operational efficiency improvements, with markets weighing the quarterly numbers against broader sector and valuation context. ICICI Securities maintains confidence in the company's ability to deliver a ~24% AUM CAGR over FY26–28E and an RoE of ~15% by FY28E.
