SBFC Finance has achieved a significant milestone, crossing ₹10,000 crore in Assets Under Management (AUM) by the end of FY26. The company reported a 31% year-on-year rise in Profit After Tax (PAT) to ₹451 crore, indicating strong growth and operational efficiency.

SBFC Finance Surpasses ₹10,000 Crore AUM, Profit Jumps 31% in FY26

SBFC Finance closed FY26 with Assets Under Management (AUM) reaching ₹11,270 crore, surpassing its ₹10,000 crore milestone. Profit After Tax (PAT) for the fiscal year grew 31% to ₹451 crore.

Reader Takeaway: Scalable model validated; monitor rising credit costs amidst growth.

What just happened

SBFC Finance announced it crossed the significant ₹10,000 crore mark in Assets Under Management (AUM), reporting ₹11,270 crore by the end of fiscal year 2026. Concurrently, the company's Profit After Tax (PAT) saw a substantial increase of 31% year-on-year, reaching ₹451 crore for FY26. Total income also grew by 28.6% to ₹1,679.50 crore.

Why this matters

This achievement signifies the company's successful scaling of its business model. The PAT growth, coupled with an improved Cost-to-Income ratio of 36.16% and stable asset quality (Gross NPA at 2.61%), demonstrates improved operational efficiency and profitability. The company's focus on a secured loan book also offers a layer of financial security.

The backstory

SBFC Finance has been on a growth trajectory, and reaching ₹10,000 crore AUM represents the conclusion of its 'Phase I' growth strategy. The company operates with a 'PhyGital' model, blending physical branch presence with digital underwriting capabilities, serving over 2 lakh active customers across 251 branches.

What changes now

The company is entering 'Phase II' of its strategy, with a new target to double its AUM to ₹20,000 crore. This phase will be led by new MD and CEO, Mr. Mahesh Dayani, with Mr. Aseem Dhru moving to Executive Vice-Chairman, ensuring continuity in strategic direction.

Risks to watch

The key concern for investors is the slight increase in credit cost to 1.27% of average AUM from 0.97% in the previous year. While the loan book is 100% secured, continued monitoring of credit costs will be crucial as the company aggressively pursues AUM growth in a competitive lending environment.

Peer comparison

While specific peer AUM figures for FY26 are not provided in the filing, SBFC Finance operates in the MSME lending space, competing with other non-banking financial companies (NBFCs) focused on small and medium enterprises. Its growth in AUM and profitability will be benchmarked against the performance of these peers.

Context metrics (time-bound)

• AUM: ₹11,270 crore (FY26)
• PAT: ₹451 crore (FY26), a 31% YoY increase.
• Cost-to-Income Ratio: 36.16% (FY26)
• Gross NPA: 2.61% (FY26)
• Loan Book: 100% secured.

What to track next

Investors should monitor SBFC Finance's progress towards its ₹20,000 crore AUM target in 'Phase II'. Key metrics to track will include credit cost evolution, Net Interest Margins, and continued improvements in operational efficiency and asset quality amidst market competition.