Synopsis: Shares of this company fall 3 percent after Q4 results as rising costs and margin pressure offset steady revenue growth, weighing on sentiment despite strong spending and improving asset quality trends.
The share of this company, a subsidiary of the State Bank of India, is a non-deposit-accepting Systemically Important NBFC, which offers a wide range of credit cards and was the first pure-play credit card company to list on the exchange came into focus after it posted weak Q4 results.
With a market capitalization of Rs 62,453 crore, SBI Cards & Payment Services Ltd’s shares made a day low of Rs 651.65 per share, down by 2.88 percent from its previous day’s close of Rs 671 per share. The share of the company gave a negative return of 34 percent over the last 5 years.
Results overview
QoQ View: revenue from operations declined to Rs 4,935 crore in Q4 FY26 from Rs 5,127 crore in Q3 FY26, marking a fall of around 3.7 percent. Profit before tax increased to Rs 816 crore from Rs 749 crore, reflecting a rise of about 9.0 percent. However, PAT declined to Rs 609 crore from Rs 557 crore, registering a sharp drop of around 9.37 percent QoQ.
YoY View: Revenue from operations rose from Rs 4,674 crore in Q4 FY25 to Rs 4,935 crore in Q4 FY26, marking a growth of about 5.6 percent YoY. Profit before tax increased from Rs 719 crore to Rs 816 crore, reflecting a rise of around 13.5 percent YoY. PAT also grew from Rs 534 crore to Rs 609 crore, up by approximately 14.0 percent YoY, showing steady bottom-line expansion.
Fiscal year comparison: Revenue rose from Rs 18,072 crore in FY25 to Rs 19,900 crore in FY26, up about 10.1 percent YoY. Profit before tax increased 10.8 percent to Rs 17,794 crore. PAT grew 13.1 percent to Rs 2,167 crore from Rs 1,916 crore, showing steady annual improvement.
Q4 Business performance
New account additions fell to 917 thousand in Q4 FY26 from 1,109 thousand in Q4 FY25, showing slower customer growth. Card-in-force rose 6 percent YoY to 2.21 crore, while receivables increased slightly by 2 percent to Rs 56,926 crore, showing stable overall growth in the base.
Spends grew strongly by 31 percent YoY to Rs 1,15,350 crore, supported by higher customer usage. Market share in spends improved to 18.1 percent from 15.7 percent, while card-in-force share slipped slightly to 18.6 percent from 19.0 percent, showing stronger spending despite slower new account additions.
Asset quality improved during the year, with gross non-performing assets falling to 2.41 percent as of March 31, 2026 from 3.08 percent a year ago. Net non-performing assets also declined to 1.04 percent from 1.46 percent, showing better loan quality and improved recoveries.
Capital position remained strong, with capital to risk (CRAR) rising to 25.5 percent as of March 31, 2026, from 22.9 percent in the previous year, well above the minimum requirement. Tier I capital also improved to 20.0 percent from 17.5 percent, indicating a healthy and well-capitalised balance sheet.
Key concerns driving the sentiments
Rising cost pressure impacting margins: Operating expenses increased sharply by 24 percent YoY in Q4 FY26 and 22 percent in FY26. Higher spending on customer acquisition, marketing, and servicing reduced operating leverage, meaning costs grew faster than income. This directly put pressure on overall profitability.
Weak operating profitability despite scale: Earnings before credit cost fell 3 percent YoY in Q4, even with strong business scale. This shows that income growth was not enough to offset rising costs. As a result, core profitability came under pressure in the short term.
Mixed efficiency and credit trends: Spends grew strongly by 31 percent YoY, but efficiency gains were limited due to only 2 percent growth in receivables. While impairment losses fell 12 percent YoY in Q4, FY26 still saw a slight rise of 2 percent, indicating mixed asset quality signals and a weaker efficiency mix.
About the Company
SBI Cards and Payment Services Limited is a non-deposit accepting systemically important nonbanking financial company registered with the RBI. The Company is engaged in issuing credit cards to consumers in India. It is headquartered in Gurgaon, Haryana. It is a subsidiary of India’s largest commercial bank, the State Bank of India.
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