SBI Cards and Payment Services Limited Earnings Summary — Q1 FY2027
SBI Cards Reports 19.5% YoY Profit Growth Amid Improving Asset Quality
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 2.1% sequentially in Q1 FY2027.
- Revenue of ₹5,041 Cr is 3.4% higher year-on-year.
- Revenue has compounded at 6.8% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹664 Cr is 19.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 0.1% annualised across the period.
- Operating margin stands at 29.8% in Q1 FY2027.
- Operating margin expanded by 35 bps year-on-year.
- Over the last two years operating margin has contracted by 439 bps.
- PBT margin is 17.7%.
- Expense growth of 2.8% remained below revenue growth of 3.4%.
- Operating profit of ₹1,503 Cr is 4.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 68/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 5,041 | 4,935 | 5,127 | 4,961 | 4,877 | 4,674 | 4,619 | 4,421 | 4,359 | 4,348 |
| Expenses | Stable | 3,537 | 3,625 | 3,785 | 3,742 | 3,439 | 3,320 | 3,372 | 3,173 | 2,867 | 2,811 |
| Operating Profit | Stable | 1,503 | 1,309 | 1,342 | 1,219 | 1,438 | 1,354 | 1,247 | 1,248 | 1,491 | 1,537 |
| Operating Margin | Stable | 29.8% | 26.5% | 26.2% | 24.6% | 29.5% | 29.0% | 27.0% | 28.2% | 34.2% | 35.4% |
| Other Income | Improving | 165 | 253 | 226 | 176 | 158 | 158 | 148 | 135 | 124 | 127 |
| Interest | Stable | 745 | 714 | 785 | 760 | 813 | 795 | 829 | 788 | 767 | 724 |
| Depreciation | Volatile | 31 | 32 | 34 | 35 | 35 | -2 | 49 | 50 | 49 | 52 |
| Profit Before Tax | Accelerating | 893 | 816 | 749 | 600 | 748 | 719 | 518 | 545 | 799 | 888 |
| Tax | Accelerating | 229 | 207 | 192 | 155 | 192 | 184 | 134 | 141 | 205 | 226 |
| Net Profit | Accelerating | 664 | 609 | 557 | 445 | 556 | 534 | 383 | 404 | 594 | 662 |
| Net Margin | Accelerating | 13.2% | 12.3% | 10.9% | 9.0% | 11.4% | 11.4% | 8.3% | 9.2% | 13.6% | 15.2% |
Key Takeaways
- Net Profit rose 19.5% YoY to ₹664.44 Cr, driven by lower impairment costs and steady fee income.
- Asset quality improved significantly with Gross NPA at 2.04% compared to 2.41% in the previous quarter.
- Impairment on financial instruments fell to ₹847.68 Cr from ₹1,096.82 Cr in Q4 FY26, suggesting better credit discipline.
- Capital Adequacy Ratio remains robust at 25.64%, well above regulatory requirements.
- Net Profit Margin improved to 12.76% for the quarter, reflecting better operational efficiency.
- Employee benefits expenses included a ₹27 Cr one-time impact due to the implementation of New Labour Codes.
- The company revised its ECL model methodology, resulting in a ₹180 Cr increase in impairment provision, offset by the reversal of previous additional provisions.
Management Guidance
Management remains focused on maintaining asset quality while navigating geo-political uncertainties, evidenced by a ₹70 Cr prudent additional impairment provision. They continue to monitor financial implications of the New Labour Codes.
Sentiment Shift
Improving
A sharp decline in impairment charges and improving NPA ratios indicate a turnaround in asset quality pressures seen in previous quarters.
Outlook
The outlook remains stable with a focus on non-interest income growth and credit cost management. As India's only listed pure-play credit card issuer, SBI Cards is well-positioned to benefit from digital payment tailwinds despite regulatory shifts for NBFC-Upper Layer entities.
From the Annual Report (Key Quotes)
“The Company being a group entity of State Bank of India, needs to comply with the regulations as applicable on NBFC-UL.”
“Company holds provision for total expected credit loss of ₹1,676.53 Crores on loan balances as of June 30, 2026.”
“Management has exercised necessary due diligence to ensure that the said results provide a true and fair view of its affairs.”
Official Quarterly Documents
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This summary is AI-generated from SBI Cards and Payment Services Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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