💰 Financial Performance

Revenue Growth by Segment

Total Revenue as a percentage of Average Total Assets (ATA) stood at 30.5% in Q2 FY26, up 32 bps YoY. Interest Income contributed 14.8% (down 38 bps YoY), Fees and Other Income contributed 14.7% (up 58 bps YoY), and Recoveries contributed 1.0% (up 13 bps YoY). Total income (net of finance cost) was INR 8,596 Cr for H1 FY26 compared to INR 15,459 Cr for the full year FY25.

Geographic Revenue Split

Not disclosed in available documents. The company operates as a national credit card issuer leveraging State Bank of India's (SBI) pan-India branch network.

Profitability Margins

Return on Average Assets (ROAA) was 2.6% in Q2 FY26, down 75 bps QoQ and 4 bps YoY. Return on Average Equity (ROAE) was 12.1% in Q2 FY26, down 363 bps QoQ and 37 bps YoY. Net profitability (RoA) for FY25 was 3.0%, a decline from 4.5% in FY24 due to higher credit costs and increased cost of funds.

EBITDA Margin

Earnings before Credit Costs stood at 11.3% of ATA in Q2 FY26, down 156 bps QoQ and 40 bps YoY. Profit After Tax (PAT) for Q2 FY26 was INR 445 Cr, up 10% YoY but down 20% QoQ from INR 556 Cr in Q1 FY26.

Capital Expenditure

Not disclosed in available documents; however, the company is making significant investments in digital customer onboarding and enhancing digital interfaces to mitigate social and operational risks.

Credit Rating & Borrowing

Maintains highest credit ratings (CRISIL AAA/Stable, ICRA AAA/Stable). Cost of funds for Q2 FY26 was 6.4%, down 71 bps YoY and 51 bps on a daily weighted average basis from 7.1% in Q1 FY26. Borrowing profile is dominated by bank borrowings at 83.4% as of June 30, 2025.

⚙️ Operational Drivers

Raw Materials

Not applicable as SBICARD is a financial services provider. The primary 'input' is capital/funding, with bank borrowings representing 83.4% of the funding base.

Import Sources

Not applicable. Funding is sourced domestically from banks (majority from parent SBI, which provides 45% of total borrowings) and capital markets.

Key Suppliers

State Bank of India (SBI) is the primary financial supporter, holding a 68.59% stake and providing 45% of total borrowings as of June 30, 2025.

Capacity Expansion

Cards-in-force (CIF) grew to 2.15 Cr in Q2 FY26, a 10% YoY increase. New accounts added in Q2 FY26 were 9.36 lakhs, up 4% YoY and 7% QoQ. Total spends reached a record INR 107,063 Cr in Q2 FY26, up 31% YoY.

Raw Material Costs

Finance costs stood at 4.5% of ATA in Q2 FY26, down 71 bps YoY. Total finance costs for H1 FY26 were 4.7%, a 50 bps YoY reduction due to repo rate cut benefits being absorbed.

Manufacturing Efficiency

Cost-to-income ratio was 56.8% in Q2 FY26, up 339 bps YoY and 649 bps QoQ, driven by higher festive campaign costs and corporate pass-backs.

Logistics & Distribution

Operating costs (including distribution and festive marketing) stood at 14.8% of ATA in Q2 FY26, up 143 bps YoY.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth is driven by leveraging SBI's vast customer base and branch network for card distribution (Banca channel). The company is focusing on 'quality acquisition' with a 50-50 split between Banca and open market. Expansion is also targeted through digital onboarding and festive campaigns to drive retail spends, which grew 17% YoY to INR 89,611 Cr in Q2 FY26.

Products & Services

Credit cards (Core Cards and Co-branded Cards), payment services, and unsecured retail loans (receivables).

Brand Portfolio

SBI Card, SBI Card ELITE, SBI Card PRIME, and various co-branded cards with partners in Travel, Fuel, and Retail segments.

New Products/Services

Focus on digital-native consumer products and co-branded cards. New accounts added (9.36 lakhs) contribute to the 10% YoY growth in CIF.

Market Expansion

Market share in CIF remained steady at 19% as of September 2025. Spend market share grew to 16.8% in FY26 (based on August 2025 RBI data).

Market Share & Ranking

Second-largest credit card issuer in India with a 19% market share in Cards-in-Force (CIF) and a top-three player by spends.

Strategic Alliances

Strong integration with parent SBI (68.59% stake). Co-branding alliances exist across Travel, Fuel, and Retail sectors with various partners.

🌍 External Factors

Industry Trends

The credit card industry is seeing faster growth in CIF; SBICARD's CIF grew 10% YoY. There is a significant shift toward digital platforms and 'transactor' behavior (higher volumes but lower interest yields).

Competitive Landscape

SBICARD is the #2 player. Competition is intense from other large private banks, but SBICARD maintains a 19% CIF market share.

Competitive Moat

Moat is built on the 'SBI' brand and the parent's massive distribution network. This provides a low-cost customer acquisition channel (Banca) and strong liquidity support (INR 10,350 Cr unutilised lines).

Macro Economic Sensitivity

Highly sensitive to systemic interest rates; a reduction in rates is expected to seep into the weighted average cost of funds by end-FY26, improving NIMs.

Consumer Behavior

Shift toward festive-driven spending and digital native preferences. Transactor volumes spike during Q2/Q3, impacting short-term yields but driving record spends (INR 1.07 Lakh Cr).

Geopolitical Risks

Low direct exposure; however, indirect risk exists if macroeconomic instability affects the repayment capacity of the unsecured individual borrower base.

⚖️ Regulatory & Governance

Industry Regulations

Regulated as an NBFC by the RBI. Subject to RBI norms on capital adequacy (CAR 22.5% vs 15% requirement) and asset classification (GNPA 2.85%).

Environmental Compliance

Direct environmental risk is not significant due to the service-oriented nature of the business.

Taxation Policy Impact

Effective tax rate was approximately 25% (PBT INR 600 Cr vs PAT INR 445 Cr in Q2 FY26).

Legal Contingencies

No specific pending court case values disclosed, but the company monitors risks related to data security and customer privacy to avoid regulatory censure.

⚠️ Risk Analysis

Key Uncertainties

Asset quality remains the primary uncertainty; 99.5% of the portfolio is unsecured. Net credit costs were elevated at 7.7% in Q2 FY26 and 8.2% in Q1 FY26.

Geographic Concentration Risk

Pan-India operations through SBI's network; specific regional concentration percentages are not disclosed.

Third Party Dependencies

High dependency on SBI for branding, management (deputed senior employees), and 45% of total borrowings.

Technology Obsolescence Risk

Risk of being irrelevant to 'digitally native' consumers is being mitigated by investments in digital customer onboarding and brand evolution.

Credit & Counterparty Risk

Gross Stage 3 (GNPA) stood at 2.85% as of September 30, 2025, showing an improvement from 3.08% in March 2025. Net NPA (NNPA) was 1.29%.