SBFC Finance showcased robust Q2 FY26 performance.

1. **Business Performance:** Profit after tax surged 30% YoY to ₹109 crore.

Asset Under Management (AUM) grew 29% YoY to ₹9,938 crore, impressively crossing ₹10,000 crore in October 2025. Secured MSME loans were a key driver.

2. **Growth Drivers & Strategy:** The company targets the growing ₹5-30 lakh MSME loan segment.

Its pan-India footprint of 220 branches and strong credit underwriting, including high CIBIL scores (over 88% AUM >700) and collateral-backed loans, are central.

Efficient, tech-driven in-house collections further strengthen operations.

3. **Recent Developments:** A notable milestone was achieving the ₹10,000 Cr AUM mark.

Recent credit rating upgrades highlight financial stability.

4. **Key Financial Metrics:** Gross NPA stood at 2.77% with a solid Provision Coverage Ratio (PCR) of 46.17%. Return on Assets (RoA) was 4.56% and Return on Equity (RoE) 14.09%. The Cost-to-AUM ratio improved to 4.40%. 5. **Management Outlook:** SBFC Finance continues its focus on underserved informal customers, supported by experienced leadership and a diversified funding base.

Capital Adequacy Ratio (CRAR) remains strong at 34.05%.