SBI Cards and Payment Services Ltd. (SBICARD), India’s second-largest credit card issuer, announced its Q2 FY2026 (July–September 2025) financial results on October 24, 2025. The company reported robust revenue growth and a steadily expanding customer base, driven by strong festive season spending and higher card usage across categories.
However, profitability moderated sequentially due to increased marketing expenses and higher provisions, reflecting a cautious approach amid rising competition. On a positive note, asset quality improved slightly on a quarter-on-quarter basis, showcasing disciplined credit risk management and healthy portfolio performance.
In this article, we’ll break down SBI Cards’ Q2 FY2026 results, highlighting its key financial metrics, spending trends, and growth outlook for the rest of the fiscal year.
Key Financial Highlights
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹4,961 crore | ₹4,419 crore | +12% |
| Total Income | ₹5,136 crore | ₹4,556 crore | +13% |
| Net Profit (PAT) | ₹445 crore | ₹404 crore | +10% |
| EBITDA (Estimated) | ₹1,365 crore* | ₹1,210 crore* | +12.8%* |
| EPS (Basic) | ₹4.68 | ₹4.25 | +10.1% |
*Approximate based on available disclosures.
Sequentially, revenue grew 2% QoQ, while profit declined 20%, impacted by higher marketing and promotional expenses during the festive season.
Management Commentary
SBI Cards’ management highlighted that consumer spending momentum remained strong, particularly across e-commerce, travel, and retail segments. The company also noted a robust increase in card activation rates and continued focus on risk-calibrated portfolio growth.
“We continue to focus on expanding our customer base while maintaining prudent risk practices. Our investment in brand partnerships and digital channels will help sustain growth through FY26,” the management said in its post-results statement.
Segment Performance
- Card Spends: ₹1.07 lakh crore in Q2 FY26 — up 31% YoY, supported by robust festive and retail demand.
- Receivables: ₹59,845 crore — up 8% YoY, indicating higher credit utilization.
- New Card Additions: 9.36 lakh cards, maintaining leadership in card issuance.
- Fees & Commission Income: ₹1,468 crore, up 16% YoY, driven by increased transaction volumes.
Asset Quality
| Metric | Q2 FY26 | Q2 FY25 | QoQ Trend |
|---|---|---|---|
| Gross NPA (GNPA) | 2.85% | 3.27% | Improved |
| Net NPA (NNPA) | 1.29% | 1.19% | Improved QoQ |
| Provision Coverage Ratio | 79% | 78% | +1% YoY |
Provisions rose to ₹350 crore, up 15% YoY, reflecting cautious provisioning for standard assets. Despite higher provisions, overall asset quality strengthened, and delinquencies moderated.
Profitability and Efficiency Metrics
| Metric | Q2 FY26 | Q2 FY25 | Change |
|---|---|---|---|
| ROAA | 2.6% | 2.7% | -0.1% |
| ROAE | 12.1% | 12.5% | -0.4% |
| Cost-to-Income Ratio | 56.8% | 55.2% | +1.6% |
| NIM | 10.2% | 10.5% | -0.3% |
| Capital Adequacy Ratio (CRAR) | 22.5% | 21.8% | +0.7% |
The cost-to-income ratio increased due to marketing and reward-related costs, but the company remains well-capitalized, with CRAR comfortably above RBI norms.
Market Reaction
Following the results, SBI Cards’ shares traded flat to slightly higher, closing near ₹920 on October 24, 2025. Analysts described the results as operationally steady, with revenue growth matching expectations and profits slightly below consensus due to higher opex.
Peer Comparison
Compared to peers like HDFC Bank (Credit Card Division) and Axis Bank, SBI Cards maintained its market share of 19% in cards-in-force and 17% in overall spends. While margins were under pressure, its fee income and credit quality outperformed smaller rivals like RBL Bank and IDFC First Bank in the unsecured lending segment.
Future Outlook
- The company aims to add 3.5–4 million new cards in FY26, with a focus on co-branded and digital-first offerings.
- Management expects NIM to stabilize at 10–10.5% in H2 FY26.
- Profit growth guidance remains at 15–18% YoY, supported by rising card spends and moderate credit costs.
- Festive season and expanding merchant partnerships are expected to further boost Q3 performance.
FAQs
Q1. What was SBI Cards’ net profit in Q2 FY26?
SBI Cards reported a net profit of ₹445 crore, up 10% YoY, though down 20% QoQ.
Q2. Did SBI Cards beat market expectations?
Yes, revenue and spend growth were in line with analyst forecasts, though profit came slightly below due to higher expenses.
Q3. How did SBI Cards’ margins perform?
Margins narrowed slightly as NIM declined to 10.2%, impacted by higher funding and marketing costs.
Conclusion
SBI Cards delivered a solid Q2 FY26 performance, supported by strong card spends and customer growth, even as profits were tempered by seasonal expenses. With improving asset quality, expanding partnerships, and rising digital adoption, the company remains well-positioned for sustained growth in India’s fast-evolving credit card market.
Sources: SBI Cards Investor Presentation
