SBFC
Large CapSBFC Finance Limited
Financial Services
SBFC Finance Limited is an NBFC focused on providing Secured MSME loans to small businesses, with a typical ticket size of ₹5 lakh to ₹30 lakh. It operates with a pan-India footprint across 18 states and 2 UTs, supported by an experienced management team and strong corporate governance.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 75/100Rev +26% YoY · PAT +31% YoY · +7% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹454 Cr | +25.8% | +6.6% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹123 Cr | +30.9% | +4.2% |
| PAT margin | 27.1% | +105 bps | -61 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
SBFC Finance reported robust FY26 performance with PAT up 31% YoY to ₹451 crore and AUM growing 29% YoY to ₹11,270 crore. Q4 FY26 PAT grew 30.1% YoY and 4.0% QoQ. Asset quality remained stable with GNPA at 2.61%, though PCR declined sequentially.
The company delivered strong AUM and PAT growth for FY26, maintaining stable asset quality with GNPA at 2.61%. Spreads and NIM improved YoY. While the Provision Coverage Ratio saw a sequential decline and credit costs increased, the overall growth trajectory and stable GNPA suggest the core thesis remains intact, warranting close monitoring of provisioning trends.
AUM Mix by Product (Mar-26)
Latest issuer-disclosed distribution across 2 reported categories.
Secured MSME Loan Growth
Secured MSME AUM grew 22% YoY to ₹8,873 crore for FY26, driving overall AUM expansion.
Branch Network Expansion
The company expanded its pan-India footprint by adding 46 branches YoY, reaching 251 branches as of Mar 2026.
Co-origination Model
Co-origination disbursement value grew 16% YoY to ₹122 crore in Q4 FY26, validating profitable origination.
Technology-led Lending Lifecycle
Paperless, multilingual, and API-led workflows are reducing friction from onboarding to disbursal, improving control and customer experience.
Branch Additions
The company added 46 branches YoY and 21 branches QoQ, reaching a total of 251 branches as of March 2026.
Growing MSME Market
The target market of ₹5 lakh - ₹30 lakh MSME financing is a ₹4 lakh crore segment, growing at a 24% CAGR.
High Quality Borrowers
Over 89% of AUM is from customers with CIBIL scores above 700, indicating strong credit profiles.
Declining Provision Coverage Ratio
The Provision Coverage Ratio (PCR) declined to 41.64% in Q4 FY26 from 46.21% in Q3 FY26.
Increasing Credit Cost
Credit cost increased to 1.38% of AUM in Q4 FY26 from 1.00% in Q4 FY25, indicating higher provisioning needs.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
NBFCs benefit from both sequential momentum in disbursements and AUM, and annual comparisons for overall growth, profitability, and asset quality trends, especially given the focus on project execution and utilization.
AUM Growth
AUM grew 29% YoY to ₹11,270 crore (FY26) and 7.56% QoQ (Q4 FY26).
Secured MSME Disbursements
Secured MSME disbursements were ₹3,107 crore (+16% YoY) for FY26 and ₹785 crore (+4% QoQ) for Q4 FY26.
Yield on Loans
Yield on loans was 17.84% (+9 bps YoY) for FY26 and 17.61% (-27 bps QoQ) for Q4 FY26.
Spread
Spread improved to 8.99% (+57 bps YoY) for FY26 and 9.09% (+5 bps QoQ) for Q4 FY26.
Focus on Underserved Segment
Management emphasizes tailored credit underwriting to service underserved, underbanked informal customers with partial income proof and limited credit history.
Granular and Secured Loan Book
The loan book is 94% secured by self-occupied residential/commercial property, with 100% co-borrower requirement, ensuring granularity and security.
Diversified and Stable Funding
The company maintains a diversified borrowing mix from various lenders, supported by an AA- (Stable) credit rating.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AUM Growth | 29% YoY (FY26) | Sustained growth in AUM, particularly in the Secured MSME segment, and sequential momentum. |
| Asset Quality (GNPA/NNPA) | GNPA 2.61%, NNPA 1.54% (Q4 FY26) | Stability or improvement in asset quality metrics, especially given the informal customer segment. |
| Provision Coverage Ratio (PCR) | 41.64% (Q4 FY26) | Reversal of the declining trend in PCR and adequate provisioning for potential credit losses. |
| Spreads and NIM | Spread 9.09%, NIM 10.24% (Q4 FY26) | Maintenance or expansion of spreads and Net Interest Margin amidst competitive pressures and borrowing costs. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -4.8% / mo
Technical chart
SBFCdaily · 1Y-16.8%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 48.
- SMA20 falling (~3.9% over last month) — short-term momentum negative.
- RSI(14) at 48 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 20% off 52W high · 15% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 12.6%.
- Growth contributes 15/25 to the score.
- Valuation contributes 5/30 to the score.
Main drags
- Altman Z is 1.6, in distress territory.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Balance sheet is weaker at 0/15; verify the latest quarterly trend.
NBFC valuation: P/B, ROA, borrowing cost, and asset quality
Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 17th percentile of the scored universe and 30th percentile within Financial Services. Main check: cash conversion is weak at 28/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-1415 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Financial Services: 30th pctile, median 62 · Large: 11th pctile, median 74
62 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-1415 Cr.
- ▸Altman Z is 1.60.
- ▸Only 0 years of positive FCF.
- ▸Debt/equity is 1.65.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 29.20
- P/B
- 3.11
- EV/EBITDA
- 903.94
- Market Cap
- 10103.00Cr
Profitability
- ROE
- 11.60%
- ROCE
- 11.60%
- ROA
- 4.01%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 0.96%
- EPS 5Y
- 74.44%
- Revenue 3Y
- 35.00%
- EPS 3Y
- 75.00%
Balance Sheet
- Debt/Equity
- 1.65
- Interest Coverage
- —
- Altman Z
- 1.60
- Book Value
- 29.40
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -1415.00 Cr
- EPS TTM
- 3.18
Shareholding
- Promoter Hold
- 52.35%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 27%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.