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Macroeconomic headwinds from inflation and rising rates
View Risks →SBFC Finance Ltd — Q4 FY26
SBFC Finance reported Q4 FY26 PAT of ₹123 crore (+30% YoY) and full-year PAT of ₹451 crore (+31% YoY).
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SBFC Finance reported Q4 FY26 PAT of ₹123 crore (+30% YoY) and full-year PAT of ₹451 crore (+31% YoY). AUM grew 29% YoY to ₹11,270 crore, driven by gold loans (+63% YoY) which now form 21% of AUM. Spreads expanded 56bps YoY to 9.09% as cost of borrowing fell 83bps. Opex reduced 69bps YoY to 3.93%, while credit cost stood at 1.38%. Management maintained growth guidance of 5-7% quarterly and expects opex to decline 20-25bps in FY27. Gold share may rise to 25% as branch additions mature. Key risk: macro headwinds from inflation and rising interest rates could pressure MSME borrowers and elevate credit costs.
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AUM
₹11,270 crore
+29% YoY
Assets under management grew 29% year-over-year, with gold loans surging 63%.
Spreads
9.09%
+56bps YoY
Net interest spreads expanded 56 basis points year-over-year due to lower cost of funds.
Cost of Borrowing
8.52%
-83bps YoY
Cost of borrowing declined sharply by 83 basis points year-over-year, benefiting from repo rate cuts.
Gold Loan AUM Share
21%
+8pp YoY
Gold loan share of AUM increased to 21% from 13% a year ago, driven by rising gold prices.
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Guidance and risk preview
Management reiterated its guidance of 5-7% sequential AUM growth, with Q4 FY26 delivering above 7%.
Rising fuel prices, weakening rupee, and potential interest rate hikes could pressure MSME borrowers and increase credit costs.
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