SBI Card Reports 20% YoY Profit Growth to ₹664 Crore in Q1 FY27; Asset Quality Improves Substantially

SBI Cards and Payment Services Limited (BSE: 543066, NSE: SBICARD) announced its financial results for the first quarter ended June 30, 2026 (Q1 FY27), delivering a strong 20% year-on-year increase in Net Profit After Tax (PAT) to ₹664 crore, up from ₹556 crore in Q1 FY26.

The growth was primarily driven by a dramatic reduction in impairment losses and bad debt expenses, alongside robust card spend volumes and expanded market share in total credit card transactions.

Performance Highlights & Key Ratios

Total Revenue: Grew 3% YoY to ₹5,205 crore compared to ₹5,035 crore in Q1 FY26.

Profit After Tax (PAT): Rose 20% YoY to ₹664 crore (up 9% sequentially from ₹609 crore in Q4 FY26).

Return on Average Assets (ROAA): Expanded to 3.9% in Q1 FY27 from 3.4% in Q1 FY26.

Return on Average Equity (ROAE): Climbed to 16.5% in Q1 FY27 compared to 15.8% in Q1 FY26.

Capital Adequacy Ratio (CRAR): Stood strong at 25.6% (Tier 1 at 20.3%), well above the RBI regulatory minimum threshold of 15%.

Operational & Business Highlights

SBI Card maintained its position as the #2 card issuer in India across cards-in-force, overall spend, and total transaction volume.

Card-in-Force: Rose 7% YoY to 2.26 crore as of June 30, 2026, compared to 2.12 crore as of June 30, 2025 (Market share at 18.6%).

New Account Additions: Registered 1,023K new accounts in Q1 FY27, up from 873K in Q1 FY26.

Card Spends: Surged 27% YoY to ₹118,475 crore compared to ₹93,244 crore in Q1 FY26. Spend market share expanded significantly to 19.5% from 16.6% a year ago.

Receivables (Gross Advances): Grew 3% YoY to ₹58,269 crore, up from ₹56,607 crore as of Q1 FY26 and ₹56,926 crore as of March 31, 2026.

Detailed Financial Summary

Income Breakdown

Interest Income: Decreased 3% YoY to ₹2,421 crore (vs ₹2,493 crore in Q1 FY26).

Fees & Non-Interest Revenue: Rose 10% YoY to ₹2,620 crore (vs ₹2,384 crore in Q1 FY26), driving revenue growth.

Total Revenue from Operations: Stood at ₹5,041 crore (up 3% YoY).

Other Income: Recorded at ₹165 crore (up 4% YoY).

Expenses & Credit Costs

Finance Costs: Reduced 8% YoY to ₹745 crore (down from ₹813 crore in Q1 FY26).

Operating Costs: Increased 23% YoY to ₹2,620 crore (vs ₹2,123 crore in Q1 FY26).

Earnings Before Credit Costs: Stood at ₹1,841 crore, down 12% YoY from ₹2,100 crore in Q1 FY26.

Impairment Losses & Bad Debts: Dropped significantly by 30% YoY to ₹948 crore (down from ₹1,352 crore in Q1 FY26 and ₹1,097 crore in Q4 FY26), providing a major boost to net profitability.

Significant Asset Quality Improvement

SBI Card demonstrated a notable recovery in asset quality indicators during the quarter:

Gross NPA Ratio: Decreased by 103 bps YoY to 2.04% of gross advances as of June 30, 2026, compared to 3.07% as of June 30, 2025.

Net NPA Ratio: Dropped by 59 bps YoY to 0.83% as of June 30, 2026, compared to 1.42% as of June 30, 2025.

Balance Sheet & Capital Position

As of June 30, 2026:

Total Balance Sheet Size: Reached ₹69,707 crore, up from ₹66,328 crore as of March 31, 2026.

Net Worth: Expanded to ₹16,463 crore (Equity of ₹16,391 crore), compared to ₹15,797 crore as of March 31, 2026.

Cash & Bank Balances: Stood at ₹3,983 crore (up from ₹2,320 crore in Mar '26).

Total Borrowings & Subordinated Liabilities: Stood at ₹47,176 crore (up from ₹44,064 crore in Mar '26).

Credit Ratings

SBI Card continues to enjoy the highest credit ratings from premier rating agencies:

CRISIL: Long Term: AAA/Stable | Short Term: A1+

ICRA: Long Term: AAA/Stable | Short Term: A1+

Shares of SBI Cards and Payment Services Limited was last trading in BSE at Rs. 621.75 as compared to the previous close of Rs. 626.45. The total number of shares traded during the day was 29758 in over 1300 trades.

The stock hit an intraday high of Rs. 629.10 and intraday low of 616.10. The net turnover during the day was Rs. 18497611.00.

Source : Equity Bulls

Keywords

SBICardsandPaymentServices INE018E01016 Q1FY27 Q1FY2027 ResultUpdate