SBFC Finance Ltd.AUM ₹12,592 Cr (+27%), PAT ₹139 Cr, ROE 15%

SBFC Finance's Q2 FY27 call, held on 26 October 2026, showed a secured MSME and gold lender delivering its 36th straight quarter of growth.

Assets under management reached ₹12,592 crore, up 6% on the quarter and 27% on the year, all of it secured. Profit after tax was ₹139 crore, up 27% on the year, with return on assets of 4.6% and return on equity of 15.04%. Spreads of 9.6% beat the guided 9% to 9.25%, but management warned against modelling that level because gold loan competition is rising. Operating expense fell to 4.07% and credit cost eased to 1.37%, which management called the likely peak.

Gold loans are 23% of the book at ₹2,906 crore, and management said it is guarded about chasing growth there. MSME disbursements rose 6% to ₹855 crore after the shift away from loans below ₹7 lakh. The repo rate hike lifts funding costs, so the company raised its lending rate by 25 basis points in October. Guidance holds at 5% to 7% quarterly growth and a 25 basis point cut in operating cost for FY27. No earlier promises were on file for comparison.