SBFC Finance Ltd

ESG rating disclosure

• SBFC Finance reports ESG rating of 76.7 for FY2025-26 by SES ESG Research, based on public data.
• Company did not engage SES ESG; rating prepared independently from public data.
• Rating received on 16 August 2026 and published on SBFC's investor site.

Business Overview

• Secured MSME lending with ticket size ₹5–₹30 lakh.
• Pan-India footprint: 256 branches across 18 states and 2 UTs.
• In-house sourcing with analytics-driven underwriting.
• Promoter Clermont Group remains a major stakeholder; board governance supported by marquee investors.

Key Operational Highlights

• AUM at ₹11,922 crore, up 27% YoY and 6% QoQ.
• PAT ₹130 crore in quarter, up 29% YoY.
• Gross NPA 2.66%, PCR 42%.
• Disbursal value ₹809 crore; volume 7,700 loans.
• Branches 256; live customers 2,17,117.
• Opex/AAUM 4.29%; yield 9.48%.
• RoAAUM 4.53%; RoATE 39.07%.
• CRAR 31.95%; leverage 3.25x.
• Diversified borrowing mix across banks, NCDs, securitisation.

Financial Performance

• Total income ₹492 crore; PAT ₹130 crore.
• Interest income on loans ₹454 crore.
• Borrowings ₹8,858 crore; cash ₹1,664 crore.
• Equity & reserves ₹3,874 crore.
• NIM/Avg AUM 10.68%; spread 9.48%.
• Credit cost/Avg AUM 1.45%.
• Tax expense ₹44 crore; PAT ₹130 crore.
• GNPA 2.66%; NNPA 1.55%; PCR 42.22%.
• Leverage 3.25x; CRAR 31.95%.

Capital Structure & Liquidity

• AA- (Stable) credit rating.
• Equity listing on NSE & BSE.
• Clermont Group holds 52.31%.
• Diversified funding mix: Banks, NCDs, securitisation, DFIs.
• Cash ₹1,664 crore; borrowings ₹8,858 crore.
• CRAR 31.95%; Tangible Net Worth ₹3,613 crore.
• Live customers 217,117; AUM ₹11,922 crore.

Strategic Priorities & Outlook

• Market size for MSME financing ₹4.61 lakh crore.
• AUM CAGR 19.8%; growth ~27% YoY in Q1 FY27.
• Plan to sustain pan-India footprint and in-house sourcing.
• Rating upgrades and MSCI index inclusion enhance visibility.
• Co-origination with banks and FIs to diversify funding.

Risks & Mitigation

• Risks include earnings volatility, growth management, competition, macro headwinds.
• Mitigation: established underwriting framework, experienced management, diversified funding.

Governance & Leadership

• MD & CEO: Mahesh Dayani; CFO: Sanket Agrawal.
• Independent directors and board composition noted.
• Promoter stake: Clermont Group 52.31%.
• MSCI Global Small Cap index inclusion highlighted.

Results approved

• Board approved unaudited Q1 FY2027 results for quarter ended 30 June 2026.
• Revenue from operations 4,914.64 million; net profit after tax 1,301.23 million.
• EPS (basic/diluted) ₹1.18/₹1.17 for quarter.

Security cover and CP

• Security cover maintained for secured NCDs; 1.10x asset cover per information memo.
• Security Cover Certificate attached; confirms sufficiency.
• CP proceeds used as disclosed; CFO certificate filed.
• 8,92,544 equity shares issued to employees on option exercise.

Regulatory and auditor disclosures

• Independent Auditor's Review: no material misstatement; no audit opinion issued.
• Regulatory disclosure under Regulation 52(4) for quarter; key ratios noted.
• Certificate on use of CP proceeds and security cover filed with exchanges.
• Annexure I provides ratios including net worth, GNPA, NNPA, and CRAR.

Appointments/Resignations

• CFO Narayan Barasia resigns from SBFC Finance, effective close of business on 15 July 2026.
• Sanket Agrawal appointed as CFO and KMP, effective 16 July 2026.
• Sanket Agrawal, CSO & IR, named CFO; 13+ years' experience across audit and governance.
• Appointment approved on the recommendation of the Nomination & Remuneration and Audit Committees.
• Terms of appointment: existing full-time employment.
• Authorized officials for materiality determination identified, effective 16 July 2026.
• Sanket Agrawal profile highlights 13+ years across Deloitte, SBFC governance.

AGM details

• AGM held on 14 July 2026 at 03:00 PM IST via VC/OAVM.
• Shareholding record date: 7 July 2026.
• Total shareholders on record date: 1,36,430.

Resolutions and outcomes

• Resolution 1 (Ord): Adopt audited financial statements; passed.
• Resolution 2 (Ord): Re-appoint Executive Vice-Chairman; passed.
• Resolution 3 (Ord): Re-appoint Nominee Director Jonathan Tatur; passed.
• Resolution 4 (Special): Increase borrowing limits; passed.
• Resolution 5 (Special): Increase in charges on assets; passed.
• Resolution 6 (Special): Issuance of debt securities; passed.

Directors

• Aseem Dhru re-appointed as Executive Vice-Chairman.
• Jonathan Tatur re-appointed as Nominee Director.

AGM Details

• Date/time: 14 July 2026 at 3:00 PM IST, via VC/OAVM, concluded 4:08 PM IST.
• Remote e-voting window: 10–13 July 2026; cut-off date for eligibility: 7 July 2026.
• Quorum confirmed; meeting chaired by Independent Director.

Key Resolutions

• Ordinary: Adopt Audited Financial Statements for year ended March 31, 2026.
• Ordinary: Re-appointment of Aseem Dhru, Executive Vice-Chairman, retiring by rotation.
• Ordinary: Re-appointment of Jonathan Tatur, Nominee Director, retiring by rotation.
• Special: Increase in borrowing limits.
• Special: Increase in limit of creation of charges on assets.
• Special: Issuance of debt securities including non-convertible debentures.

Voting Status

• Voting results for all resolutions not disclosed in the filing.
• Combined results to be uploaded within two working days; displayed on exchange websites.

Director Changes

• Directors re-appointed: Aseem Dhru; Jonathan Tatur.

Dematerialisation data submission

• RTA certifies that dematerialisation/rematerialisation details were furnished to all stock exchanges.