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    SBI Cards

    SBICARD
    Financial Services·27 Apr 2026
    Management Summary

    SBI Cards reported a strong Q4 and FY26, with total revenue growing 11% and PAT 13% for the full year. Overall spends saw robust 31% YoY growth in Q4, and asset quality improved significantly with GNPA reducing to 2.41%. The company maintained its position as the second largest credit card issuer with 18.6% market share. However, the cost-to-income ratio was impacted by higher corporate spends, and a slight downward bias is expected in revolve rates for FY27.

    Highlights

    6

    • Total Revenue for FY26 was INR20,708 crores, registering 11% growth Y-o-Y.

    • Profit after tax for FY26 was INR2,167 crores with a 13% growth Y-o-Y.

    • Overall spends in Q4 FY '26 exceeded INR1.15 trillion with a strong 31% growth Y-o-Y.

    • GNPA for the quarter was reduced by 46 basis points quarter-over-quarter to 2.41%.

    • ROA for FY '26 was 3.2%, 11 bps higher Y-o-Y.

    • Cost of funds during Q4 was 6.4%, lower by 82 basis points Y-o-Y.

    Concerns

    3

    • ROE for FY '26 was 14.6%, lower by 5 basis points Y-o-Y.

    • Cost-to-income ratio for FY '26 was 55.3%, impacted by higher operating expense on account of higher corporate spends.

    • Revolve rates have been in the range of 22% to 24% over the last 2 years, and we expect this to have a slight downward bias in FY '27.

    Key financials

    Single quarter

    11 metrics
    1. 01Total Revenue₹5,187 Cr+7.0%YoY
    2. 02PAT₹609 Cr+14.0%YoY
    3. 03Receivables₹56,926 Cr+2%YoY
    4. 04Cost of Funds6.4%-0.8%YoY
    5. 05NIM11.1%

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Dividend

    ₹2.5/share (interim)

    Liquidity

    Liquidity disclosed

    The company maintains adequate capital and provision buffers and is underleveraged, ready to pursue profitable growth.

    Guidance & targets

    6
    CategoryTargetPriority
    New Accounts
    New Account Acquisition
    9 lakh to 1 million
    		High
    Profitability
    Revolve Rates
    slight downward bias
    		Medium
    Profitability
    NIM
    remain stable
    		Medium
    Profitability
    ROA
    4-4.5%
    		High
    Credit Cost
    Credit Cost Moderation
    moderate further
    		Medium
    Efficiency
    Cost-to-Income Ratio
    55-58%
    		High

    Revolve Rate Trend

    FY '27
    Current22-24%
    TargetSlight downward bias

    Why it matters

    Monitoring the actual trend of revolve rates is crucial as it directly impacts interest income and overall profitability.

    Revolve rates have been in the range of 22% to 24% over the last 2 years, and we expect this to have a slight downward bias in FY '27.

    How to verify

    key_financials.metrics[label='Revolver Balance']

    Risks & concerns

    3
    RiskSeverity

    Macroeconomic and Geopolitical Uncertainty

    Uncertain macroeconomic conditions and geopolitical turmoil pose risks to NIM stability and credit cost moderation, requiring vigilance. — Management acknowledged

    medium

    Downward Bias in Revolve Rates

    Expected slight downward bias in revolve rates for FY27 could impact profitability, necessitating compensation through installment lending and other fee income. — Management acknowledged

    medium

    Industry-wide Asset Quality Issues

    Past asset quality issues across the industry have led to tighter underwriting standards, resulting in comparatively muted cards-in-force growth. — Management acknowledged

    low

    Q&A highlights

    8

    “We have mentioned during our previous earnings call that we will target acquisition of 9 lakh to 1 million for the quarter, and we have ended this quarter with around 9.17 lakhs. So we are on track, and we have said that the growth will be calibrated. We look at the next quarter acquisition to be somewhere in the similar range. And continue with adding high-value, good quality customers, which ultimately add value to the overall financials of the company.”

    Analyst questioned lower new account additions; management clarified focus on calibrated growth and high-value customers, maintaining acquisition targets.

    asked by Ajmera

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26

    SBI Cards reported robust financial growth for FY26, with total revenue reaching INR20,708 crores, an 11% increase year-on-year, and profit after tax growing 13% to INR2,167 crores. The company's interest-earning assets stood at 54% of receivables, and Net Interest Margin (NIM) improved by 31 basis points year-on-year to 11.2% for FY26. For Q4 FY26, total revenue was INR5,187 crores (7% YoY growth) and PAT was INR609 crores (14% YoY growth).

    02

    Robust Spends Growth and Market Position

    Overall spends in Q4 FY26 exceeded INR1.15 trillion, demonstrating a strong 31% year-on-year growth. For the full year, retail spends reached a record INR3.54 trillion, up 15% YoY. SBI Cards maintained its position as the second largest credit card issuer in the country, holding an 18.6% market share in cards-in-force and an 18.1% spends market share for FY26. Online spends contributed 62.5% to total retail spends in FY26, and UPI on credit card usage grew 10% in Q4 FY26.

    03

    Significant Improvement in Asset Quality

    The company showed marked improvement in asset quality, with Gross Non-Performing Assets (GNPA) reducing by 46 basis points quarter-on-quarter to 2.41%. NPA stock decreased by INR268 crores QoQ to INR1,370 crores, and Stage 2 balances also saw a reduction of INR149 crores QoQ to INR2,090 crores. Gross credit cost improved by 55 basis points QoQ to 7.7%. Management expects credit costs to moderate further in FY27, while retaining an INR220 crores ECL overlay due to geopolitical uncertainties.

    04

    Calibrated Growth Strategy and Acquisition

    SBI Cards added 917,000 new accounts in Q4 FY26, aligning with its target of 9 lakh to 1 million acquisitions per quarter. The sourcing mix for FY26 was 54% from open market and 46% from banca channels. Management emphasized a focus on high-value, good quality customers and leveraging the Banca channel for new-to-credit acquisitions, while acknowledging industry-wide underwriting tightening due to past asset quality issues.

    05

    Cost-to-Income Ratio and Revolve Rate Dynamics

    The cost-to-income ratio for FY26 was 55.3%, impacted by higher corporate spends, with a Q4 ratio of 57.2%. Management guided for a 55-58% range for FY27, expecting stability. Revolve rates, which have been in the 22-24% range over the last two years, are anticipated to have a slight downward bias in FY27. The company plans to offset this potential impact primarily through increased focus on building its EMI book and exploring other fee income sources.

    06

    Capital Adequacy and Shareholder Returns

    The company reported a strong Capital Adequacy Ratio of 25.5% for Q4 FY26, indicating a robust financial position. An interim dividend of INR2.50 per equity share was declared, reflecting the Board's commitment to rewarding shareholders. Management highlighted that the company is underleveraged and has abated asset quality issues, allowing for shareholder returns while maintaining adequate buffers for future growth.

    07

    Outlook and Strategic Focus

    SBI Cards remains optimistic about India's consumer credit and digital payments ecosystem, aiming for a 4-4.5% ROA in the medium term. The company is investing in AI/ML for product development and service delivery, aiming to harness its full potential in FY27. Management is vigilant regarding geopolitical and economic landscapes, ready to adapt its strategy while pursuing profitable growth with adequate buffers.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.