SBI Cards reported a strong Q2 performance with net profit rising to Rs 777.60 crore from Rs 444.77 crore YoY. Revenue from operations also saw steady growth. Asset quality improved significantly, with Gross NPA dropping to 1.90%, signaling a healthy balance sheet despite proactive impairment provisioning.
SBI Cards Q2 Profit Rises 75% to Rs 777 Crore
Net Profit: Rs 777.60 crore | Gross NPA: 1.90%
Reader Takeaway: Strong profitability growth and improved asset quality are tempered by cautious macroeconomic provisioning strategy.
What just happened
SBI Cards and Payment Services Ltd announced its unaudited financial results for the second quarter and half-year ended September 30, 2026. The company reported a significant surge in net profit to Rs 777.60 crore, compared to Rs 444.77 crore in the same quarter last year. Revenue from operations grew to Rs 5,140.53 crore from Rs 4,960.98 crore, reflecting stable top-line growth.
Why this matters
The jump in profitability highlights robust operational efficiency and credit demand management. More importantly, the company demonstrated a notable improvement in asset quality. Gross NPA improved to 1.90% from 2.41% as of March 31, 2026, while Net NPA reached 0.77% compared to 1.04% in the previous quarter, suggesting disciplined risk management.
Risks to watch
Despite the positive results, the company remains cautious. It recorded an additional impairment provision of Rs 30 crore during the quarter, bringing the cumulative additional provision to Rs 100 crore. Management attributed this to uncertainty stemming from geopolitical tensions and the broader macroeconomic environment.
What to track next
Investors should closely watch whether the current pace of provisioning continues or if macroeconomic pressures begin to impact repayment behaviors in the coming quarters. Monitoring asset quality trends alongside the company’s ability to sustain the EPS of Rs 8.17 will be critical for assessing future growth.