Asset quality metrics from the later quarter showed gross non-performing assets at 1.12%, down from 1.18% a year earlier, with a collection efficiency of 97.5% and a provision coverage ratio above 60%. The branch network crossed 800 outlets after 45 new additions during the quarter, supporting further penetration in semi-urban and rural markets.
Quarterly data from a separate source, however, shows a different GNPA trajectory for the period through March 2026, with gross NPA declining from 2.78% in June 2025 to 2.61% in March 2026. The divergence between the two sets of figures—1.12% in one report and 2.61%–2.78% in another—creates uncertainty around the true asset quality picture and warrants careful reconciliation by investors.
Total operating expenses in the June 2025 quarter rose 30.88% year-on-year to ₹127.77 crore, outpacing the 29.93% revenue growth. Selling, general and administrative expenses increased 15.71% to ₹70.32 crore, while other operating expenses jumped 50.83% to ₹27.59 crore.
The company’s core strategy remains anchored in secured MSME and gold loans, segments that have historically delivered higher yields and manageable credit costs. With an annualized revenue run-rate now exceeding ₹1,600 crore and a branch network still expanding, the operational trajectory appears intact.
Investors now face a straightforward but critical question: can SBFC Finance sustain its disbursement momentum and reconcile the conflicting asset quality signals before the next reporting cycle tests the durability of its growth narrative?
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
