SBI Cards & Payment Services Ltd (SBICARD) AI Stock Analysis

• Market Cap: ₹682.96B
• Dividend Yield: 0.29%
• Average Volume (3M): 37.05K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.84
• Revenue Growth: 7.08%
• EPS Growth: -22.19%
• Country: IN
• Employees: 3,829
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 5.85
• Shares Outstanding: 951,594,700
• 10 Day Avg. Volume: 38,181
• 30 Day Avg. Volume: 37,050
• PEG Ratio: -2.07
• Price to Book (P/B): 5.95
• Price to Sales (P/S): 4.70
• P/FCF Ratio: -37.35
• 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: ₹912.50
• Price Target Upside: 26.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 23.16
• Revenue Forecast (FY): ₹174.91B

• Rating: 59 Neutral
• Price Target: ₹750.00 ▲(3.65% Upside)
• Action: Reiterated Date: 09/10/25
• Date: Action: Reiterated 09/10/25

SBI Cards & Payment Services Ltd's overall stock score is primarily influenced by its strong revenue growth and profitability, despite high debt levels and negative cash flows. The technical indicators suggest a bearish trend, and the valuation metrics indicate the stock may be overvalued. These factors combined result in a moderate overall score.

Positive Factors

Revenue Growth

Sustained multi-year revenue expansion demonstrates growing card receivables and transaction volumes, driving scalable top-line growth. Over 2–6 months this indicates durable market adoption, stronger merchant acceptance and increasing fee/interchange income supporting long-term earnings capacity.

High Gross Margin

A high gross margin signals efficient core economics of card issuance and transaction processing, leaving room to absorb credit losses and fund rewards. Structurally this margin strength supports reinvestment in acquisition and product development while protecting operating profitability over time.

Distribution Advantage

Direct access to SBI's extensive retail network and co‑brand partnerships lowers customer acquisition costs and accelerates portfolio scale. This durable distribution moat enhances cross-sell, loyalty and new product rollout efficiency, underpinning sustainable growth and market share resilience.

Negative Factors

High Leverage

Elevated debt levels increase funding and refinancing risk for a credit issuer, making profitability sensitive to rising interest rates and liquidity shocks. Over months this constrains capital flexibility, raises cost of growth and limits ability to absorb stress in credit cycles without dilutive or costly financing.

Cash Flow Deficit

Persistent negative free cash flow implies reliance on external financing to fund receivables growth and operations. Structurally this raises liquidity dependence, may increase funding costs, and reduces internal capacity to invest or weather credit downturns without raising capital or curbing growth.

Margin Compression

Declining net margins despite revenue gains point to rising operating expenses, funding costs or higher credit provisioning. This trend can erode return on equity and limit reinvestment, making profitability more vulnerable to future credit stress or competitive pricing pressure over the medium term.

SBI Cards & Payment Services Ltd Business Overview & Revenue Model

Company Description

SBI Cards and Payment Services Limited, a non-banking financial company, issues credit cards to individual and corporate customers in India. The company also acts as corporate insurance agent for selling insurance policies to credit card customers. It offers corporate cards, central travel cards, utility cards, and corporate purchase and virtual cards. The company was incorporated in 1998 and is based in Gurugram, India. SBI Cards and Payment Services Limited is a subsidiary of State Bank of India.

How the Company Makes Money

SBICARD primarily makes money from credit-card-related interest income and fee-based income generated from its cardholder base and transaction activity. A major revenue stream is finance charges (interest) earned on revolving credit—when cardholders carry balances, convert purchases to EMIs/instalments, or use other card-based credit features; this interest revenue depends on outstanding receivables, pricing, and credit performance (delinquencies/charge-offs). Another key stream is fees charged to cardholders, which can include annual/membership fees (where applicable), late payment fees, over-limit fees, and other service fees; these are influenced by card mix, customer behavior, and product structure. SBICARD also earns revenue tied to card spending volume through interchange-related income and other network/transaction economics associated with credit card payments (earned when cardholders use cards at merchants), while incurring corresponding network and processing costs. In addition, the company can earn from partnerships such as co-branded and affinity arrangements (e.g., with brands, retailers, travel/online platforms), which may involve marketing support, revenue-share arrangements, or program economics linked to card acquisition and spend; the specific terms vary by partnership. Overall profitability is driven by growth in card receivables and spend, effective risk underwriting and collections (to manage credit losses), and the balance between interest/fee income and funding, rewards, acquisition, and operating costs.

SBI Cards & Payment Services Ltd Financial Statement Overview

Summary

SBI Cards & Payment Services Ltd shows strong revenue growth and profitability on the income statement with a robust gross profit margin. However, the company faces challenges with high debt levels and negative cash flows, which impact financial stability.

Income Statement

SBI Cards & Payment Services Ltd has demonstrated robust revenue growth with a significant increase from ₹73,235.75 crore in 2020 to ₹186,371.5 crore in 2025. The gross profit margin is strong at 78.8% for 2025, indicating effective cost management. However, the net profit margin has decreased from previous years, currently at 10.3% for 2025, which suggests increased expenses or operational challenges affecting net income.

Balance Sheet

The company's debt-to-equity ratio suggests a high reliance on debt financing, with the ratio increasing over the years. The equity ratio is at 21% for 2025, indicating moderate financial leverage. Return on equity (ROE) has improved, reaching 13.9% in 2025, reflecting better utilization of shareholders' equity to generate profit.

Cash Flow

The cash flow statements reveal negative free cash flow for several years, with a slight improvement in operating cash flow in recent periods. The operating cash flow to net income ratio is negative, indicating cash flow challenges potentially due to high capital expenditures or financing needs. Despite improvements, cash flow management remains an area requiring attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	186.87B	174.46B	153.41B	123.21B	96.63B	85.69B
Gross Profit	151.86B	142.68B	127.51B	106.78B	86.37B	75.92B
EBITDA	39.94B	27.27B	34.29B	31.94B	23.21B	14.47B
Net Income	19.18B	19.16B	24.08B	22.58B	16.16B	9.85B
Balance Sheet
Total Assets	698.62B	655.46B	581.71B	455.46B	346.48B	270.13B
Cash, Cash Equivalents and Short-Term Investments	33.33B	27.38B	27.30B	9.90B	7.58B	6.72B
Total Debt	492.25B	449.47B	403.15B	315.31B	232.85B	181.92B
Total Liabilities	550.73B	517.64B	460.87B	357.15B	268.96B	207.11B
Stockholders Equity	147.89B	137.82B	120.84B	98.30B	77.53B	63.02B
Cash Flow
Free Cash Flow	-42.27B	-21.96B	-55.26B	-67.64B	-44.91B	6.35B
Operating Cash Flow	-42.10B	-21.40B	-54.52B	-66.71B	-43.91B	6.92B
Investing Cash Flow	5.14B	-24.91B	-14.57B	-9.21B	-5.38B	-9.97B
Financing Cash Flow	43.11B	46.87B	84.01B	78.24B	50.45B	4.32B

SBI Cards & Payment Services Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 723.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SBICARD, the sentiment is Negative. The current price of 723.6 is below the 20-day moving average (MA) of 744.63, below the 50-day MA of 778.03, and below the 200-day MA of 854.69, indicating a bearish trend. The MACD of -23.06 indicates Positive momentum. The RSI at 25.10 is Positive, neither overbought nor oversold. The STOCH value of 12.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SBICARD.

SBI Cards & Payment Services Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CDSL	65 Neutral	₹257.82B	56.57	―	0.82%	3.63%	-11.24%
BAJFINANCE	64 Neutral	₹5.47T	38.55	―	0.56%	22.38%	18.37%
SBICARD	59 Neutral	₹682.96B	36.82	―	0.29%	7.08%	-22.19%
LICHSGFIN	55 Neutral	₹275.88B	5.31	―	1.87%	4.79%	13.08%
M&MFIN	52 Neutral	₹446.43B	8.44	―	2.83%	―	―
CHOLAHLDNG	45 Neutral	₹281.35B	13.60	―	0.07%	22.50%	8.48%

SBI Cards & Payment Services Ltd Corporate Events

SBI Cards Engages Global Institutional Investors in Singapore Meetings

SBI Cards & Payment Services Ltd disclosed that it held a series of one-on-one investor and analyst meetings in Singapore on March 10, 2026, organized by J.P. Morgan and attended by major global institutional investors including GIC Private Limited, M&G Investment Management, Temasek Holdings, Citadel Asset Management and Eastspring Investments. The company stated that only information already in the public domain was shared during these interactions, underscoring ongoing engagement with large international stakeholders while affirming adherence to disclosure norms under SEBI’s listing regulations.

The meetings, which ran from early morning to mid-afternoon India time, form part of SBI Cards’ regular outreach to the investment community and were simultaneously communicated to domestic exchanges and posted on the company’s website. Such high-profile institutional interactions highlight continued global investor interest in the issuer and may support liquidity and visibility of its stock, even though no new price-sensitive information or guidance was released.

SBI Cards Announces Interim Dividend and Extends Internal Audit Chief’s Term

SBI Cards and Payment Services Ltd has declared an interim dividend of Rs 2.50 per equity share, representing 25% of the face value, for the financial year 2025-26, with March 11, 2026 set as the record date and payout to be completed by April 3, 2026. The move underscores the company’s continued profitability and shareholder-return focus in a competitive cards and payments landscape.

The board has also approved a four-month extension of the term of Ved Prakash as Executive Vice President and Head of Internal Audit, from March 1, 2026 to June 30, 2026, following recommendations from key board committees. His continued tenure is aimed at ensuring stability and continuity in the internal audit function, supporting robust governance and risk oversight at the company.

SBI Cards Announces Interim Dividend and Extends Internal Audit Chief’s Term

SBI Cards & Payment Services Ltd has declared an interim dividend of Rs 2.50 per equity share, or 25% of the Rs 10 face value, for the 2025-26 financial year, with March 11, 2026 set as the record date and payouts to be completed by April 3, 2026. The move underscores the company’s ongoing shareholder-return policy while highlighting its operational confidence and cash-generation capacity.

The board has also approved a four-month extension of Ved Prakash’s term as Executive Vice President and Head of Internal Audit, from March 1 to June 30, 2026, ensuring continuity in a critical risk and governance function. This extension, coupled with the ongoing trading window closure under insider trading norms, signals a focus on robust internal controls and regulatory compliance during a key financial reporting period.

SBI Cards Declares Interim Dividend, Extends Tenure of Internal Audit Head

SBI Cards & Payment Services Ltd has declared an interim dividend of Rs 2.50 per equity share, or 25% on a face value of Rs 10, for the financial year 2025-26, with March 11, 2026 set as the record date and payment to be completed by April 3, 2026. The board also approved a four-month extension of Ved Prakash’s term as Executive Vice President and Head of Internal Audit until June 30, 2026, underscoring continuity in oversight and governance as the company manages regulatory and market demands.

The company has kept its trading window closed from February 27 to March 7, 2026 in line with SEBI insider trading regulations, reflecting adherence to disclosure and compliance norms around price-sensitive information. Ved Prakash, a senior State Bank of India officer with over three decades of banking experience, continues to lead SBI Cards’ internal audit function, supporting robust risk management and internal control frameworks for the fast-growing card issuer.

SBI Cards Declares Interim Dividend and Extends Internal Audit Head’s Tenure

SBI Cards & Payment Services Ltd has declared an interim dividend of Rs 2.50 per equity share, representing 25% of the face value of Rs 10 for the financial year 2025-26, with March 11, 2026 set as the record date and dividend payment to be completed on or before April 3, 2026. The board also approved a four-month extension of Ved Prakash’s term as Executive Vice President and Head of Internal Audit, underscoring continuity in oversight of the company’s internal controls and governance during this period, while maintaining a trading window closure in line with insider trading regulations.

SBI Card Publishes Audio Recording of Q3 FY26 Earnings Call

SBI Cards & Payment Services Ltd has notified the stock exchanges that it has made available the audio recording of its Q3 FY26 earnings call with analysts and investors held on January 28, 2026. The disclosure, made under SEBI’s Listing Obligations and Disclosure Requirements, underscores the company’s compliance focus and its effort to enhance transparency and access to financial information for market participants and stakeholders.

SBI Cards Allots 8,096 Shares Under 2023 Employee Stock Option Plan

SBI Cards and Payment Services Ltd has allotted 8,096 equity shares of face value ₹10 each to eligible employees following the exercise of stock options under its SBI Card Employee Stock Option Plan 2023, at an exercise price of ₹10 per share. This ESOP-related allotment marginally increases the company’s paid-up share capital from ₹951.58 crore to approximately ₹951.59 crore and slightly dilutes existing shareholding, reflecting the company’s ongoing use of equity-based incentives to retain and reward key talent without materially altering its overall capital structure.

SBI Cards Files SEBI Regulation 74(5) Confirmation, Reports No Demat Requests in Q3 FY26

SBI Cards and Payment Services Ltd has notified the stock exchanges that it has received a confirmation certificate from its Registrar and Transfer Agent, MUFG Intime India Private Limited, under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended December 31, 2025. The registrar has confirmed that no requests for dematerialisation of the company’s securities were received during the quarter, rendering the specific compliance requirements under this regulation inapplicable for that period; this disclosure underscores ongoing regulatory compliance and provides transparency to investors and market participants regarding the status of the company’s share dematerialisation activity.

SBI Cards Receives ESG Rating of 78 from NSE Sustainability Ratings

SBI Cards and Payment Services Limited has received an Environmental, Social and Governance (ESG) rating of 78 from NSE Sustainability Ratings and Analytics Limited, a SEBI-registered ESG rating provider, based on data for the financial year 2024-25. The disclosure, made under SEBI’s listing regulations, underscores the company’s focus on sustainability metrics and provides investors and other stakeholders with an additional benchmark to assess SBI Cards’ non-financial performance and risk profile in the Indian financial services sector.

SBI Cards Allots 29,896 Shares on Employee Stock Option Exercise

SBI Cards and Payment Services Ltd has approved the allotment of 29,896 equity shares following the exercise of employee stock options under its 2019 and 2023 ESOP schemes. The Nomination and Remuneration Committee cleared the issue of 13,000 shares at an exercise price of Rs 152.10 per share under the 2019 plan and 16,896 shares at Rs 10 per share under the 2023 plan, resulting in a marginal increase in the company’s paid-up share capital to Rs 9,51,57,74,000, represented by 95,15,77,400 equity shares. The move reflects ongoing use of stock-based compensation to incentivise and retain employees, with only a minimal dilutive impact on existing shareholders.