SBFC Finance Q2 Results: Net Profit Surges 30% to ₹109 Crore, AUM Crosses ₹10,000 Crore
Non-banking financial company SBFC Finance Ltd on Saturday (November 1) reported a 29.7% year-on-year rise in Q2 FY26 net profit to ₹109 crore, up from ₹84 crore in Q2 FY25, driven by a 32% increase in net interest income (NII) to ₹281.8 crore from ₹213.8 crore.
Key Highlights of Q2 Results
For the first half of FY26, the company reported a profit of over ₹200 crore and achieved a key milestone, crossing an Assets Under Management (AUM) of ₹10,000 crore in October 2025. AUM grew 29% year-on-year and 6% quarter-on-quarter, reaching ₹9,938 crore in Q2 FY26. Revenue from operations rose 31% compared to the same period last year.
Stable Asset Quality and Improved Return on Equity
SBFC Finance maintained stable asset quality, with Gross Non-Performing Assets (GNPA) at 2.77% in September 2025, nearly unchanged from 2.78% in the previous quarter. Return on equity (ROE) improved to 14.09%, supported by enhanced operating efficiency and lower cost ratios.
Speaking on the results, Sanket Agrawal, Chief Strategy Officer, said, ‘We have reached a milestone of ₹10,000 crore of AUM in October 2025, which is a significant achievement for us. This is a long journey, and in building a Company, it is important to enjoy these moments which reflect the hard work of our employees and the trust of our stakeholders.’
‘We are now at an ROE of 14.09% on a debt equity ratio of 1.80 times. We have a long runway for growth in the segment, given our deep distribution network. Our NIMs have improved, operating costs have come down and asset quality has remained stable over the years. We are happy where we are and excited for where we are headed,’ he added.
Outlook and Future Prospects
SBFC Finance has maintained its growth guidance for FY25, with a 25-30% asset management growth expected. The company’s strong distribution network and improved operating efficiency are expected to drive growth in the coming quarters.
For investors looking to invest in the non-banking financial companies sector, SBFC Finance’s Q2 results are a positive indicator of the company’s growth prospects. The company’s stable asset quality and improved return on equity make it an attractive investment option.
However, investors should also consider the overall market trends and the performance of the Indian stock market before making any investment decisions. It is also essential to do your own research and consult with a financial advisor before investing in any company.
Conclusion
In conclusion, SBFC Finance’s Q2 results are a positive indicator of the company’s growth prospects. The company’s stable asset quality, improved return on equity, and strong distribution network make it an attractive investment option. However, investors should consider the overall market trends and do their own research before making any investment decisions.
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