SBFC Finance Limited, incorporated in 2008 and headquartered in Mumbai, is a systemically important Non-Banking Financial Company (NBFC-ND-SI) that has established itself as a prominent player in India's financial services sector. The company specializes in providing secured micro, small, and medium enterprises (MSME) loans and loans against gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working-class individuals.
Among MSME-focused companies, SBFC Finance has one of the highest Assets Under Management (AUM) growth rates in the industry, demonstrating its strong market position and growth trajectory. The company has achieved a CAGR growth of 46% in AUM from FY19 to H1 FY25, highlighting its exceptional expansion capabilities.
SBFC Finance operates through a comprehensive business model that combines traditional lending with innovative loan management services. The company has developed a PhyGital model, combining digital technology with personal relationships to build bonds with its customers and offer support. This approach enables the company to serve a diverse customer base effectively across multiple segments.
Beyond providing loans directly to customers, SBFC also offers a suite of specialist loan management services, helping institutional lenders manage all aspects of loan servicing including client relations, collections, payments, porting, and data storage. The company handles the porting of repayment modes (NACH/ECS) and can transfer equated monthly instalments between accounts, providing comprehensive financial solutions to its clients.
SBFC Finance has demonstrated strong financial performance across multiple metrics. As of the latest available data, the company has a market capitalization of ₹12,084 crore, representing a 33.2% increase over the past year. The market cap stood at ₹12,270.54 crore as of June 6, 2025.
- Net profit rose 45.63% to ₹345.30 crore in FY25 compared to ₹237.10 crore in FY24, while sales increased 27.63% to ₹1,285.00 crore from ₹1,006.78 crore
- In Q4 FY25, net profit rose 27.51% to ₹93.94 crore compared to ₹73.67 crore in Q4 FY24, with sales increasing 30.25% to ₹359.36 crore
- Earnings per share (EPS) reached ₹3.21 in FY25, up from ₹2.35 in FY24
- Total income jumped 26.3% YoY to ₹333.25 crore, with profit before tax at ₹117.47 crore, up 37% from ₹85.73 crore in Q3 FY24
- Net interest margin (NIM) to average assets under management (AUM) stood at 10.27% in Q3 FY25, slightly up from 10.26% in Q3 FY24
- Assets under management increased by 30% YoY to ₹8,148 crore in Q3 FY25
The company maintains a disciplined approach to asset quality management. Gross Non-Performing Assets (NPA) stood at 2.70% as of December 31, 2024, compared to 2.69% as of September 30, 2024, and 2.38% as of December 31, 2023. Net non-performing assets (NPA) remained stable at 1.63% as of December 31, 2024, unchanged from September 30, 2024, but higher than 1.36% recorded in December 2023.
The collection efficiency improved to 97.88% in Q3 FY25, compared to 97.47% in Q3 FY24, demonstrating effective collection strategies and customer relationship management.
Promoter holding in SBFC Finance has decreased to 53.33% as of March 2025 from 55.19% as of June 2024, reflecting the company's public listing and subsequent equity dilution as part of its growth strategy.
As of June 30, 2022, the company had an expansive footprint in 104 cities spanning 16 Indian states and two union territories with 135 branches. This widespread presence enables SBFC Finance to serve customers across diverse geographic markets and tap into India's growing MSME sector.
Looking ahead, revenue is forecast to grow 19% per annum on average during the next 3 years, compared to a 21% growth forecast for the Consumer Finance industry in India. This positions SBFC Finance well within the industry growth trajectory while maintaining its competitive edge in the MSME and gold loan segments.
The company's focus on secured lending, combined with its robust risk management practices and technological capabilities, positions it favorably to capitalize on India's growing demand for credit among small businesses and individual borrowers. With its strong financial performance, expanding market presence, and innovative service offerings, SBFC Finance continues to strengthen its position as a leading player in India's NBFC sector.
