SBFC Finance delivered a robust Q1 FY27. Profit after tax jumped 29% YoY to ₹130 Cr.

Assets Under Management (AUM) grew 27% YoY, hitting ₹11,922 Cr, primarily from Secured MSME loans.

Operating efficiency improved, with Cost-to-AUM ratio falling 30 bps YoY to 4.29%. Asset quality remains strong; Gross NPA stood at 2.66% and Net NPA at 1.55%. The company focuses on the underserved ₹5 Lakh-₹30 Lakh Secured MSME loan segment, a growing market valued at ₹461,000 Cr.

It operates through 256 branches across 18 states.

SBFC uses a strong, tech-backed credit underwriting system, with over 89% of its AUM from customers with CIBIL scores above 700 and average LTV of 42.7%. Recent milestones include crossing ₹10,000 Cr AUM and ₹125 Cr quarterly PAT.

Key financial metrics show Return on Assets (RoA) at 4.53% and Return on Equity (RoE) at 14.73%. Spread significantly improved 81 bps YoY to 9.48%, with Basic EPS at ₹1.18. Management emphasizes leveraging its experienced team and strong governance to tap into the large MSME financing opportunity.