SBI Cards and Payment Services Ltd delivered robust financial performance in Q1 FY27, with net profit rising 20% year-on-year to ₹664.4 crore compared to ₹556 crore in the corresponding quarter last year. According to the latest stock exchange filing, the company's total revenue increased 3.4% year-on-year to ₹5,205 crore in Q1 FY27 from ₹5,035 crore in Q1 FY26. Net interest income remained largely stable, declining marginally by 0.3% to ₹1,676 crore from ₹1,681 crore in the corresponding quarter last year. The company also reported profit before tax increasing 19% year-on-year to ₹893 crore from ₹748 crore in the year-ago period. As per Investing.com, the company achieved its stated goal of bringing gross credit costs below 7%, reaching 6.5%, while simultaneously adding over 1 million new accounts - the highest net additions in the Indian credit card industry according to RBI data.
The company demonstrated strong operational growth across key parameters during the quarter. As reported by the latest filing, cards-in-force increased 7% year-on-year to 22.6 million as of Q1 FY27 from 21.2 million in Q1 FY26. The number of new accounts opened rose significantly to 1.02 million during the quarter, compared with 873,000 in the year-ago period. Card spends increased 27% year-on-year to ₹1.18 lakh crore in Q1 FY27 from ₹93,244 crore in Q1 FY26, while credit card receivables grew 3% to ₹58,269 crore from ₹56,607 crore. According to Investing.com, the company added 10.23 lakh new accounts, representing 17% year-over-year growth and 11% sequential growth, bringing total cards-in-force to 2.26 crore. The results were approved by the company's board at its meeting held on July 24, according to the exchange filing.
SBI Cards maintained its strong market position during the quarter, with market share for cards-in-force at 18.6% in Q1 FY27 compared with 19.1% in Q1 FY26. According to the latest filing, the company's market share in spends increased to 19.5% from 16.6%, and it remained ranked second in the industry for cards-in-force, spends and transactions. Asset quality showed significant improvement with gross non-performing assets declining to 2.04% of gross advances as of June 30, 2026, from 3.07% a year ago. Net non-performing assets stood at 0.83% compared with 1.42% in the corresponding period last year. The provision coverage ratio strengthened to 59.9%, up 553 basis points year-over-year, while stage 1 assets (performing accounts) now represent 94.4% of total receivables, up from 92.2% a year earlier. As per Investing.com, the company utilized ₹180 crore of additional provisions created in March 2026 for the annual review and refresh of the ECL model during Q1 FY27, with improved portfolio mix resulting in ₹135 crore lower provisions.
The company's profitability metrics showed improvement during the quarter. As reported by the latest filing, return on average assets (ROAA) rose to 3.9% in Q1 FY27 from 3.4% in Q1 FY26, while return on average equity (ROAE) increased to 16.5% from 15.8%. On the income side, interest income declined 3% to ₹2,421 crore from ₹2,493 crore, but fees and other revenue increased 10% to ₹2,620 crore from ₹2,384 crore. Finance costs declined 8% to ₹745 crore from ₹813 crore, while total operating costs increased 23% to ₹2,620 crore from ₹2,123 crore. Operating expenses resulted in a 12% decline in earnings before credit costs to ₹1,841 crore. According to Investing.com, the cost-to-income ratio improved dramatically to 58.7%, down 846 basis points year-over-year, reflecting both operational leverage and improved credit costs. Management guided for a full-year cost-to-income ratio of 56-58%.
SBI Cards maintained strong financial position with improved balance sheet metrics. According to the latest filing, the company's Capital Adequacy Ratio improved to 25.6% as of Q1 FY27, with Tier I capital at 20.3%. The company's balance sheet size stood at ₹69,707 crore as of June 30, 2026, compared with ₹66,328 crore as of March 31, 2026. Gross advances, represented by credit card receivables, stood at ₹58,269 crore as of June 30, 2026, compared with ₹56,926 crore at the end of March 2026. The company's net worth increased to ₹16,463 crore as of June 30, 2026, from ₹15,797 crore as of March 31, 2026. As per Investing.com, the borrowing composition remained relatively stable with working capital demand loans representing 62% of total borrowings, term loans at 24%, commercial paper at 14%, and non-convertible debentures at 1%.
