SBFC Finance Limited (SBFC)
Large CapFinancial Services stocks · Large cap · NSE
SBFC Finance is an NBFC focused on secured MSME loans (₹5-30 lakh ticket size) and loans against gold (LAG). It operates with a pan-India footprint of 251 branches across 18 states and 2 UTs, targeting underserved, underbanked informal customers with a tech-driven lending lifecycle.
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, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
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 30 Jun 2026
Good · 70/100Rev +27% YoY · PAT +29% YoY · +8% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹491 Cr | +26.6% | +8.2% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹130 Cr | +28.7% | +5.7% |
| PAT margin | 26.5% | +45 bps | -61 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
SBFC reported strong FY26 performance with AUM up 29% YoY to ₹11,270 Cr and PAT up 31% YoY to ₹451 Cr. Q4 FY26 saw AUM grow 8% QoQ, but Net NPA increased to 1.54% and PCR declined to 41.64%.
While SBFC delivered robust AUM and PAT growth for FY26, the sequential increase in Net NPA and credit costs, coupled with a declining Provision Coverage Ratio in Q4, suggests potential asset quality pressures. The strong growth in branches and tech adoption are positives, but credit underwriting effectiveness needs close monitoring.
AUM Mix by Product (Mar-26)
Latest issuer-disclosed distribution across 2 reported categories.
Focused MSME Segment
Targeting the ₹5 lakh - ₹30 lakh MSME financing market, a large segment of ₹4 lakh crore growing at 24% CAGR.
Pan-India Footprint Expansion
Diversified pan-India network with 251 branches across 18 states & 2 UTs, adding 46 branches YoY.
Technology-Driven Lending
Engineering the lending lifecycle through paperless, multilingual, and API-led workflows, improving control and customer experience.
Co-origination Model
Co-origination disbursements of ₹122 Cr in Q4 FY26, validating profitable origination and contributing 19% to total Secured MSME loans.
Branch Network Expansion
Added 46 branches YoY and 21 branches QoQ, reaching a total of 251 branches by Q4 FY26.
Growing MSME Market
The market size for ₹5 lakh - ₹30 lakh MSME financing is ₹4 lakh crore, growing at a CAGR of 24% (FY18-FY25).
High Quality Borrowers
Over 89% of AUM is from customers with CIBIL scores above 700, indicating strong credit profiles.
Asset Quality Deterioration
UNDER_STRESSNet NPA increased to 1.54% in Q4 FY26 from 1.48% in Q3 FY26. Credit cost also rose QoQ.
Declining Provision Coverage
UNDER_STRESSProvision Coverage Ratio (PCR) declined to 41.64% in Q4 FY26 from 46.21% in Q3 FY26.
Increasing Credit Cost
UNDER_STRESSCredit Cost / Average AUM increased to 1.38% in Q4 FY26 from 1.29% in Q3 FY26.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
YoY comparison is crucial for assessing annual growth trends and overall financial health, especially for a full fiscal year report. QoQ comparison is vital for understanding recent operational momentum, asset quality shifts, and sequential efficiency improvements.
AUM Growth
AUM grew 29% YoY to ₹11,270 crore for FY26. Q4 FY26 AUM grew 8% QoQ.
Disbursements (Secured MSME)
Secured MSME disbursement value grew 16% YoY to ₹3,107 crore for FY26. Q4 FY26 disbursement value grew 12% QoQ to ₹785 crore.
Spread
Spread for FY26 was 8.99% (+57 bps YoY). Q4 FY26 spread was 9.09% (+5 bps QoQ).
Borrowing Cost
Cost of Borrowing for FY26 was 8.85% (-48 bps YoY). Q4 FY26 borrowing cost was 8.52% (-22 bps QoQ from Q3 FY26).
Focus on Underserved Segment
Tailored to service underserved, underbanked informal customers, with deep understanding of customer behavior and local markets.
Robust Credit Underwriting
Tested credit underwriting and risk management framework, including evaluation of documented and non-documented income, historical asset creation, and reference checks.
Digital Transformation
Engineering the lending lifecycle through technology, with paperless, multilingual, and API-led workflows to reduce friction and improve control.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net NPA | 1.54% (Q4 FY26) | Stability or reduction in Net NPA to confirm asset quality control. |
| Provision Coverage Ratio (PCR) | 41.64% (Q4 FY26) | Improvement in PCR to strengthen buffer against potential defaults. |
| Credit Cost / Average AUM | 1.38% (Q4 FY26) | Moderation or decline in credit costs, indicating better risk management. |
| AUM Growth & Quality | +29% YoY (FY26) | Sustained AUM growth while maintaining or improving asset quality metrics. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
70BullishSMA20 +4.0% / mo · MACD +
Technical chart
SBFCdaily · 1Y · AUTO+7.6%Daily technical trend read
NeutralTrend is undirectional — long-term uptrend intact. RSI 65.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~3.8% over last month) — short-term momentum positive.
- RSI(14) at 65 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 19% off 52W high · 26% 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.
Relative Strength & Trend Stage
- 15.5% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (-0.1% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 19 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 19 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 15/25 to the score.
- Quality contributes 3/20 to the score.
- Valuation contributes 0/30 to the score.
Main drags
- Altman Z is 1.7, in distress territory.
- Fair-value margin of safety is negative at -13.4%.
- Valuation is weaker at 0/30; 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
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 18th percentile of the scored universe and 31st 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: 31st pctile, median 62 · Large: 10th pctile, median 73
52 documents have extracted text, 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 1.71.
- ▸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.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 32.10
- P/B
- 3.40
- EV/EBITDA
- 962.53
- Market Cap
- 11099.00Cr
Profitability
- ROE
- 11.60%
- ROCE
- 11.60%
- ROA
- 4.01%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 0.92%
- EPS 5Y
- 74.44%
- Revenue 3Y
- 35.00%
- EPS 3Y
- 75.00%
Balance Sheet
- Debt/Equity
- 1.65
- Interest Coverage
- —
- Altman Z
- 1.71
- Book Value
- 29.40
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -1415.00 Cr
- EPS TTM
- 3.18
Shareholding
- Promoter Hold
- 52.31%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 47%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
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.