SBFC Finance Limited (SBFC) AI Stock Analysis

• Market Cap: ₹101.90B
• Dividend Yield: N/A
• Average Volume (3M): 117.55K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.05
• Revenue Growth: 29.27%
• EPS Growth: 28.44%
• Country: IN
• Employees: 3,758
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.10
• Shares Outstanding: 1,096,853,900
• 10 Day Avg. Volume: 114,168
• 30 Day Avg. Volume: 117,553
• PEG Ratio: 0.78
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 7.96
• P/FCF Ratio: -6.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.15
• Revenue Forecast (FY): ₹11.42B

• Rating: 67 Neutral
• Price Target: ₹101.00 ▼(-2.04% Downside)
• Action: Reiterated Date: 10/16/25
• Date: Action: Reiterated 10/16/25

SBFC Finance Limited's strong financial performance, particularly in revenue and profit growth, is a key strength. However, technical indicators suggest a neutral trend, and the high P/E ratio indicates potential overvaluation. The lack of dividend yield further impacts the stock's attractiveness.

Positive Factors

Sustained Revenue Growth

Near-30% revenue growth reflects durable expansion of lending volumes and product uptake. Over 2-6 months this supports scalable interest income, stronger pricing power versus peers, and funding benefits from a larger asset base that underpin medium-term earnings resilience.

Strong Operating Margins

Consistently healthy gross and improving net margins alongside robust EBIT/EBITDA indicate operational efficiency and disciplined underwriting. Margin durability supports internal capital generation, cushions credit stress, and enables reinvestment in distribution and technology over the medium term.

Focused SME Lending Franchise

A clear SME and retail lending focus creates a specialized origination and distribution capability. Secured lending portion provides collateral buffers while SME relationships can drive repeat business, cross-sell and portfolio seasoning that sustain revenue and competitive positioning over time.

Negative Factors

Weak Cash Conversion

Negative free cash flow growth and poor conversion of earnings into operating cash indicate reliance on external financing to fund growth. Over months this can increase funding costs, constrain liquidity buffers, and reduce flexibility to absorb credit shocks or invest without raising debt.

Rising Liabilities / Leverage

An increasing liability base and moderate leverage raise refinancing and interest-rate sensitivity risks. Persisting rises in liabilities can compress capital ratios, limit strategic optionality and elevate funding volatility, especially if market conditions tighten over the coming quarters.

Credit Exposure from Unsecured Loans

Material exposure to unsecured SME and personal loans increases credit risk and provisioning cyclicality. Over a 2-6 month horizon, borrower stress or economic slowdown can lift NPLs and reduce net interest margins, pressuring profitability and requiring higher loan-loss reserves.

SBFC Finance Limited Business Overview & Revenue Model

Company Description

SBFC Finance Limited, a financial services platform, provides financing solutions. The company offers secured MSME loans and loans against gold, as well as loan management services to third-party financial institutions, including private banks, public sector banks, foreign banks, mutual funds, and asset reconstruction companies. It serves entrepreneurs and individual customers, as well as micro, small, and medium enterprises. The company was incorporated in 2008 and is headquartered in Mumbai, India. SBFC Finance Limited operates as a subsidiary of SBFC Holdings Pte. Ltd.

How the Company Makes Money

SBFC Finance Limited generates revenue through interest income on loans disbursed to its customers. The company earns money by charging interest rates on various loan products, which can vary based on the risk profile of the borrower and the type of loan. Key revenue streams include secured loans, where the company can leverage collateral, and unsecured loans, which typically carry higher interest rates due to increased risk. Additionally, SBFC may earn fees from processing loan applications, late payments, and other service charges. Strategic partnerships with financial institutions, technology providers, and industry associations may also enhance its offerings and contribute to revenue growth by expanding its customer base and improving operational efficiencies.

SBFC Finance Limited Financial Statement Overview

Summary

SBFC Finance Limited shows strong revenue and profit growth with efficient operations, as evidenced by high margins. The balance sheet is stable, but increasing liabilities warrant caution. Cash flow generation is weak, but liquidity is managed through financing activities.

Income Statement

The income statement shows strong revenue growth with a significant increase in total revenue from 2024 to 2025, indicating a positive trajectory. The gross profit margin is healthy, and the net profit margin has improved consistently over the years. EBIT and EBITDA margins are robust, reflecting strong operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. However, the increase in total liabilities over time could pose a potential risk. The return on equity has improved, reflecting enhanced profitability. The equity ratio is stable, indicating a solid asset base.

Cash Flow

The company experiences negative free cash flow growth, which could be a concern if it continues. The operating cash flow to net income ratio is negative, highlighting challenges in converting earnings to cash. However, the company has been active in financing activities, which supports liquidity.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.37B	9.37B	6.37B	4.10B	3.02B
Gross Profit	6.75B	4.13B	2.24B	1.06B	142.43M
EBITDA	5.45B	3.37B	2.19B	1.15B	1.50B
Net Income	3.45B	2.37B	1.50B	645.21M	850.10M
Balance Sheet
Total Assets	85.96B	70.63B	57.46B	45.15B	42.31B
Cash, Cash Equivalents and Short-Term Investments	7.04B	7.00B	3.63B	9.21B	10.28B
Total Debt	52.64B	39.96B	37.39B	29.40B	27.68B
Total Liabilities	54.06B	42.85B	40.19B	32.28B	30.26B
Stockholders Equity	31.90B	27.78B	17.27B	12.87B	12.05B
Cash Flow
Free Cash Flow	-14.24B	-11.67B	-12.53B	-8.31B	-2.90B
Operating Cash Flow	-14.15B	-11.55B	-12.45B	-8.22B	-2.75B
Investing Cash Flow	1.74B	1.59B	2.06B	6.52B	3.75B
Financing Cash Flow	12.81B	10.37B	10.71B	1.83B	-1.87B

SBFC Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SBFC, the sentiment is Negative. The current price of 103.1 is above the 20-day moving average (MA) of 94.97, above the 50-day MA of 98.73, and below the 200-day MA of 106.52, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 41.72 is Neutral, neither overbought nor oversold. The STOCH value of 52.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SBFC.

SBFC Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANFINHOME	73 Outperform	₹112.69B	11.57	―	1.37%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBFC	67 Neutral	₹101.90B	24.06	―	―	29.27%	28.44%
UTIAMC	65 Neutral	₹127.16B	22.70	―	2.30%	-9.65%	-30.52%
RELIGARE	62 Neutral	₹70.00B	67.86	―	―	8.35%	-50.99%
IFCI	55 Neutral	₹161.58B	40.91	―	―	-12.62%	175.71%
INDIASHLTR	55 Neutral	₹79.47B	16.69	―	0.60%	35.30%	41.06%

SBFC Finance Limited Corporate Events

SBFC Finance Files Q3 FY26 Earnings Call Transcript with Exchanges

SBFC Finance Limited has submitted to the stock exchanges the official transcript of its Q3 FY 2026 earnings conference call held on 24 January 2026, in compliance with securities disclosure regulations. The company has also made the transcript publicly accessible on its website under the investor presentations and call transcripts section, enhancing transparency and enabling investors and other stakeholders to review management’s discussion of quarterly performance and strategic outlook.

SBFC Finance Publishes Unaudited Q3 and Nine-Month FY2025 Results in Newspapers

SBFC Finance Limited has notified the stock exchanges that it has published its unaudited financial results for the quarter and nine months ended 31 December 2025 in leading newspapers, in compliance with SEBI’s listing and disclosure regulations. The results have been advertised in Financial Express and Loksatta and simultaneously made available on the company’s website, underscoring SBFC’s adherence to mandated transparency standards and providing shareholders and market participants with timely access to its latest financial performance data.

SBFC Finance Uploads Q3 FY26 Earnings Call Audio for Investors

SBFC Finance Limited has notified the stock exchanges that it has uploaded the audio recording of its earnings conference call held on January 24, 2026, on the investor section of its website. The company will publish the transcript of the call and submit it to the exchanges in due course, enhancing disclosure and accessibility of its quarterly financial discussions for investors and other stakeholders.

SBFC Finance Announces CEO Transition and Senior Management Changes

SBFC Finance Limited’s board has approved a planned leadership transition under which current Managing Director and CEO Aseem Dhru will step down from his executive role at the close of business on 31 March 2026 and be re-designated as a Non-Executive, Non-Independent Director and Vice-Chairman from 1 April 2026, subject to requisite approvals. Executive Director Mahesh Dayani has been named as the next Managing Director and CEO for a five-year term starting 1 April 2026, pending shareholder approval via a postal ballot process, while Chief Collections Officer Sai Prashant Menon has resigned effective 31 January 2026, marking a significant reshuffle in the company’s top management that signals continuity at the board level alongside a refreshed executive leadership team.

SBFC Finance Announces CEO Transition and Senior Management Changes

SBFC Finance Limited has announced a leadership reshuffle, with Managing Director and CEO Aseem Dhru resigning from his executive role effective March 31, 2026, and being re-designated as a Non-Executive Non-Independent Director and Vice-Chairman from April 1, 2026, subject to requisite approvals. Executive Director Mahesh Dayani has been elevated to Managing Director and CEO for a five-year term starting April 1, 2026, pending shareholder approval via a postal ballot for which January 30, 2026 has been set as the cut-off date, while Chief Collections Officer Sai Prashant Menon will leave the company on January 31, 2026 to pursue new opportunities, marking a significant transition in SBFC’s top management and collections leadership that may influence its strategic and operational direction.

SBFC Finance Reshapes Top Leadership as Co-founder Mahesh Dayani Steps Up as MD & CEO

SBFC Finance Limited has announced a leadership transition effective April 1, 2026, under which current MD & CEO Aseem Dhru will move into the role of Non-Executive Vice Chairman, continuing to guide the company’s strategic direction from the Board. Co-founder and current Executive Director Mahesh Dayani, a veteran with over 25 years of banking experience who has helped shape SBFC’s strategy, drive growth and oversee its IPO, will be elevated to MD & CEO, a move designed to ensure leadership continuity and support the company’s long-term ambitions in the MSME segment; the company emphasized that its existing guidance and strategic priorities remain unchanged, underscoring stability for stakeholders during this transition, subject to necessary approvals.

SBFC Finance Announces CEO Transition and Senior Leadership Changes

SBFC Finance Limited has announced a leadership reshuffle, with Managing Director and CEO Aseem Dhru resigning from his executive role effective March 31, 2026, and transitioning to a non-executive, non-independent director position as Vice-Chairman from April 1, 2026, subject to requisite approvals. Executive Director Mahesh Dayani has been elevated to Managing Director and CEO for a five-year term starting April 1, 2026, pending shareholder approval via a postal ballot, while Chief Collections Officer Sai Prashant Menon has resigned to pursue new professional opportunities, effective January 31, 2026; the changes signal a planned continuity in strategic leadership as SBFC Finance manages executive succession and governance within India’s regulated financial services landscape.