SBICARD Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹5,127 Cr
verification pending
Revenue YoY
11%
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 Q3 FY26 with PAT growth of 45% YoY to ₹557 crore, driven by improved gross credit cost and lower cost of funds. Revenue from operations grew 11% YoY to ₹5,127 crore on higher spend-based income. Credit cost improved to 8.3% from 9% in Q2, with gross NPA flat at 2.86% and Stage 2 balances declining by ₹246 crore QoQ. Receivables grew ~4% YoY to ₹57,213 crore, though AUM growth remains muted at ~5% as revolver balances show downward bias. Management withdrew its earlier 10-12% AUM growth guidance, adopting a calibrated approach focused on quality over acceleration. NIM compressed to 11% from 11.2% in Q2, with management guiding margin pressure over the next 2-3 quarters. The company targets 900,000-1 million new card acquisitions per quarter going forward. Key risks include persistent revolver pressure, moderating yields, and competitive intensity in the credit card space.
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Guidance to track
- Company targets 900,000 to 1 million new account acquisitions per quarter, with focus on quality and premium accounts, especially from digital co-brands (Indigo, Flipkart, PhonePe).
- Management aims to maintain corporate spend at approximately 20% of overall retail spend, with the ratio stabilizing after rapid growth from 6% to ~20% in the past year.
- For FY26, cost-to-income ratio guidance maintained at 55-57%, factoring in higher corporate passback driven by increased corporate spend.
- Management indicates intent to return to double-digit receivable growth in 2-3 years, contingent on credit cost normalization and portfolio quality improvement.
Risks flagged
- Revolver balances have downward bias with no growth occurring in this segment. Management has been conservative on new customer acquisition for 5-6 quarters to control credit costs, impacting overall AUM growth trajectory.
- Receivables grew only ~4% YoY versus historical double-digit growth. Management withdrew its earlier 10-12% AUM growth guidance, stating current portfolio mix does not reflect that potential.
- An analyst directly questioned whether credit cards are losing share to other payment products given the sector-wide anemic AUM growth. Management attributed it to seasonality and transactor asset variations rather than structural issues, but did not provide data to fully rebut this concern.
- Yield expected to have slight downward trend for next 2-4 quarters due to revolver mix shift. Cost of funds benefit from repo rate cuts has been absorbed, with rates moving up in January. NIM guidance: will shrink towards second half of the year.
Key quotes
- We ultimately have to ultimately the customer as well as the business that we do has to be profitable. So we are having a calibrated approach and but this is something that we will continue to do that we are not going to grow recklessly. We'll grow where we see merit and where we see value.
- Asset growth will lag spends growth in next year. At least for next year. We are seeing overall in the portfolio also that as we've been seeing that we see more customers are also more aware and becoming more of transactive. So as we start building up in terms of the portfolio in terms of the new cards and the spend start going ultimately they will culminate into asset growth.
- The idea is how do we optimize the profits so that we have the right optimal margins and also ensure that the riskiness of the customer is to the extent where we are not seeing substantial losses.
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