India · Delayed Price · Currency is INR SBI Cards and Payment Services Earnings Call Transcripts
Fiscal Year 2026
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Revenue and profit grew 11% and 13% YoY, respectively, with strong digital and retail spend momentum. Asset quality improved, cost to income rose due to higher corporate spends, and a dividend was declared amid robust capital adequacy.
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Revenue grew 11% YoY and profit after tax surged 45% YoY, driven by higher spend-based income and improved credit costs. Asset growth lagged spend growth due to a cautious approach, while margins are expected to shrink as revolver share declines.
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Q2 FY 2026 saw double-digit revenue and profit growth, record spends, and improved asset quality. Guidance points to lower credit costs, stable NIM, and a cost-to-income ratio at the higher end of the 54-56% range, with continued digital and co-brand expansion.
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Revenue grew 12% year-over-year in Q1 FY26, with profit after tax down 6% and card spends up 21%. Receivables growth guidance was revised to 10–12%, and credit costs are expected to remain range-bound.
Fiscal Year 2025
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Strong Q4 and FY25 results with 8% YoY revenue growth and improved asset quality. Retail and corporate spends rebounded, NIMs rose, and receivables grew 10%. Management expects steady NIM, cautious credit cost outlook, and 12%-14% receivables growth in FY26.
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Cards in force grew 10% year-on-year, with robust digital and online spend growth. Asset quality is stabilizing, though credit costs remain elevated but are expected to moderate gradually. Receivables growth for FY26 is projected at 12%-15%, with a stable cost-to-income ratio around 52%.
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Revenue grew 8% YoY to INR 4,556 crore, but profit after tax fell to INR 404 crore due to higher credit costs and OpEx. Asset quality remains under pressure with GNPA at 3.27% and credit costs at 9%, though early delinquency inflows are improving.
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Cards in force grew 11% year-over-year, with strong retail and installment spend growth. Credit costs rose to 8.5% and GNPA increased to 3.06%, driven by broad-based delinquencies, but capital adequacy and profitability remain robust. Receivable and spend growth guidance is maintained.