SBICARD Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹5,205 Cr
verification pending
Revenue YoY
3%
reported change
EBITDA
Pending
latest reported figure
Source
manual review required
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
SBI Cards delivered a strong Q1 FY27 with PAT of ₹664 crore, up 20% YoY, driven by significantly improved credit costs. Revenue grew modestly at 3% YoY to ₹5,205 crore as operating costs increased with business growth. Gross NPA reduced to 2.04% (down 102bps YoY) and net NPA hit a post-COVID low of 0.83%, reflecting stringent underwriting actions taken over two years. Gross credit cost improved by 301bps YoY to 6.5%. Receivables grew 3% YoY to ₹58,269 crore, with management expecting asset growth to accelerate from H2 FY27 due to higher new acquisitions and festive seasonality. The company added a net 4.84 lakh cards (highest industry addition), with spends growing 27% YoY to ₹1.18 lakh crore. Market share in spends reached 19.5% versus 18.1% in FY26. NIM remained stable at 10.8%, with ROA at 3.9% and ROE at 16.5%. Key risks include potential margin compression from rising cost of funds and geopolitical uncertainties that could impact asset quality.
Colored figures show movement against the previous available record.
Guidance to track
- Higher new card acquisitions from Q1 onwards combined with festive season in Q3 should drive receivables growth acceleration in the second half.
- Management expects credit costs to moderate further given portfolio seasoning and improved asset mix, subject to any adverse impact from Middle East conflict.
- Improved profitability and higher ROA of 3.9% (up 51bps YoY) puts the company on track to achieve stated ROE guidance in medium term.
- Festive season will see higher costs but annual average cost-to-income should be maintained in the 56-58% range as previously guided.
Risks flagged
- While COF remained stable at 6.6% for the quarter, management expects it to trend higher in line with market rates, which could pressure NIM going forward.
- Management remains watchful for second-order impacts on fuel prices, inflation, and customer cash flows. Analysts raised concerns about poor monsoon affecting rural spending in Q2-Q3.
- Growing BNPL and personal loan offerings from fintechs and NBFCs could cannibalize credit card EMI and spend growth, particularly for large-ticket purchases.
- Analyst noted that two years of strict limit rationalization could constrain spend growth if not reversed, though management is beginning credit limit increases for eligible customers.
Key quotes
- As of now SBI card is the second largest credit card player in terms of cards in force, spends as well as transactions.
- Our gross credit cost has improved by 116 basis points quarter over quarter and 301 basis points year-over-year to 6.5%. Continuing the reducing trend over the last one year, gross NPA has reduced by 36 basis points quarter over quarter and 102 basis points year-over-year to 2.04%.
- Our strong market position with 18.6% market share in cards in force and 19.5% share in card spends reinforces confidence in our strategy and our ability to deliver sustainable growth.
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