SBI Cards & Payment Services Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 5,140.53 Cr (+3.62% YoY) and PAT growth of +74.83% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 23, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 5,140.53 Cr (+3.62% YoY) |
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| PAT (Q2) | Rs. 777.60 Cr (+74.83% YoY) |
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| EPS (Q2) | Rs. 8.17 (+74.95% YoY) |
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| Market cap | Rs. 51,916.93 Cr |
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| CMP | Rs. 545.55 |
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Quarter Snapshot
PAT surged 74.83% YoY to Rs.777.60 Cr almost entirely on a 36.62% YoY drop in credit costs, while EBCC declined 1.45% YoY and revenue grew only 3.62% — the profit quality is credit-cycle-driven, not operating-driven. Asset quality (GNPA 1.90%) and capital (CAR 26.47%) are at best-in-series levels, but cost-to-income (58.69%) missed the 55-58% guidance band for a second quarter and the loan book is still shrinking ahead of the guided H2 FY27 inflection. The Q3 receivables print is the key catalyst to watch.
Key Investment Insights
Key Positives
- PAT grew 74.83% YoY to Rs.777.60 Cr; normalized PAT (adding back overlay provisions on both sides) grew 71.81% to Rs.799.91 Cr
- Impairment on financial instruments fell 36.62% YoY (Rs.473.35 Cr less); impairment intensity fell to 2.85% annualized from 4.43% a year ago
- GNPA improved to 1.90% (from 2.85% Sep-25) and NNPA to 0.77% (from 1.29%) — best levels in the disclosed series
- CAR improved to 26.47% from 25.64%; debt/equity deleveraged to 2.77 from 2.87 at Jun-26
- Fees and commission income grew 7.44% YoY to Rs.2,434.02 Cr, carrying the top line while interest income grew only 0.85%
- H1 annualized ROAA of 4.20% (derived) is within management's 4-4.5% medium-term target
- Net worth rose 16.11% YoY to Rs.17,172.08 Cr; operating cash outflow narrowed to Rs.(1,014.27) Cr in H1 from Rs.(4,210.25) Cr in H1 FY26
Risk Factors
- Cost-to-income at 58.69% exceeded the top of management's 55-58% FY27 guidance band for a second consecutive quarter; H2 would need ~51% to land in-band
- Receivables contracted 2.98% QoQ and 2.29% YoY to Rs.56,532.02 Cr; the guided H2 FY27 asset-growth acceleration is not yet visible
- EBCC (earnings before credit cost) declined 1.45% YoY to Rs.1,865.09 Cr — the profit surge is a credit-cost story, not an operating one
- Finance costs rose 5.74% QoQ against interest income growth of 3.73% QoQ on a 70-75% floating-rate borrowing book
- Rs.30 Cr additional impairment overlay re-added citing geopolitical tensions (cumulative buffer Rs.100 Cr), with an auditor Emphasis of Matter
- Fees and commission expenses grew 24.12% YoY, faster than fee income growth of 7.44%