SBI Cards Quarterly Results FY26

SBI Cards Q1 FY26 Results: Profit Down 6%, Revenue and Spends Up

SBI Cards and Payment Services, a leading player in India’s credit card market, recently released its Q1 FY26 financial results. The report highlighted a mixed performance, with a decline in net profit but robust growth in revenue and customer spending. This performance reflects the evolving dynamics of India’s financial sector, marked by rising credit demand and increasing consumer spending.

For investors and market participants, these results provide valuable insights into the company’s financial health and strategic outlook. Let us delve into the key highlights of SBI Cards’ Q1 FY26 results and their implications for stakeholders.

SBI Cards Q1 FY26 results overview

SBI Cards reported a 6% year-on-year (YoY) decline in net profit for Q1 FY26, amounting to Rs. 556 crore. Despite this dip, the company demonstrated strong revenue growth, with total income rising by 12% YoY to Rs. 4,046 crore. This surge was driven by higher interest income, fee income, and increased customer spending on credit cards.

Key highlights from the Q1 FY26 results include:

Total revenue: Rs. 4,046 crore (12% YoY growth).

Net profit: Rs. 556 crore (6% YoY decline).

Spending growth: A notable increase in credit card usage and customer transactions.

Asset quality: Gross Non-Performing Assets (GNPA) stood at 3.07%, reflecting stability despite rising credit provisions.

Credit cost: Increased to 9.6%, indicating higher provisioning for potential defaults.

These results underscore SBI Cards’ ability to sustain revenue growth despite challenges in asset quality and profitability.

Looking to invest in SBI Cards shares? Check the SBI Cards Share Price for the latest updates.

Net profit and revenue trends for Q1 FY26

SBI Cards’ net profit declined by 6% YoY in Q1 FY26, falling from Rs. 590 crore in the same quarter last year to Rs. 556 crore. The dip can be attributed to higher provisioning for credit losses and rising operating expenses.

However, the company’s total revenue grew by 12% YoY, reaching Rs. 4,046 crore. This growth was driven by:

Net interest income (NII): Increased by 13.8% YoY.

Fee and commission income: Rose by 13% YoY.

Customer spending: Higher transaction volumes and increased credit card usage.

Year-over-Year Comparison Table

The revenue growth highlights SBI Cards’ ability to capitalise on India’s growing credit card market, despite profitability pressures.

Credit cost and asset quality insights

SBI Cards’ credit cost increased to 9.6% in Q1 FY26, reflecting higher provisioning for potential loan defaults. The company’s Gross Non-Performing Assets (GNPA) ratio stood at 3.07%, marking a slight increase from previous levels but remaining within manageable limits.

Asset Quality Metrics

The rise in credit costs indicates a cautious approach by SBI Cards to manage potential risks in its loan portfolio. However, the stable asset quality suggests that the company is effectively navigating the challenges posed by rising credit demand and macroeconomic uncertainties.

SBI Cards NII and fee income performance

SBI Cards reported robust growth in its net interest income (NII) and fee income during Q1 FY26, driven by higher customer spending and an expanding credit card base.

NII: Increased by 13.8% YoY, reflecting higher interest income from credit card loans.

Fee and commission income: Grew by 13% YoY, supported by increased transaction volumes and service charges.

The growth in these key revenue streams highlights SBI Cards’ strong operational performance and its ability to leverage India’s growing consumer economy.

Want to learn how to start investing? Read our guide on How to Open a Demat Account.

Outlook and strategic commentary for FY26

Looking ahead, SBI Cards’ management remains optimistic about its growth prospects for FY26. The company aims to:

Expand its customer base: By leveraging partnerships and digital channels to acquire new users.

Enhance operational efficiency: Through technology-driven solutions and cost optimisation strategies.

Manage credit costs: By maintaining a balanced approach to risk management and provisioning.

The management’s focus on innovation and customer-centric strategies positions SBI Cards as a key player in India’s credit card market.

Conclusion

SBI Cards’ Q1 FY26 results reflect a mixed performance, with strong revenue growth offset by higher credit costs and a decline in net profit. The company’s ability to sustain growth in key revenue streams, despite challenges in profitability and asset quality, underscores its resilience and strategic focus.

For investors, these results highlight the potential for long-term growth in India’s credit card market, driven by rising consumer spending and digital adoption.