SBI Cards and Payment Services Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript SBI Cards and Payment Services Ltd filed with BSE on 30 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
SBI Cards reported Q1 FY27 PAT of Rs 664 crores, up 20% year-on-year, driven by improved credit cost, while total revenue grew 3% year-on-year to Rs 5,205 crores. Cards in force grew 7% year-on-year to around Rs 2.26 crores, with total spends reaching Rs 1,18,475 crores, up 27% year-on-year, and retail spend up 14% year-on-year. Gross NPA improved to 2.04% and net NPA fell to 0.83%, while management said receivables growth is expected to pick up from the second half of the financial year.
Numbers mentioned
PAT: INR664 crores (Q1 FY27)
p. 5
“Our PAT for Q1 FY27 has grown to INR664 crores, up 20% Y-o-Y, driven by significantly improved credit cost.”
Salila Pande, page 5 of the filed PDF · View the filing
Total revenue: INR5,205 crores (Q1 FY27)
p. 5
“The total revenue for Q1 FY27 stood at INR5,205 crores with 3% Y-o-Y growth.”
Salila Pande, page 5 of the filed PDF · View the filing
Total spends: INR1,18,475 crores (Q1 FY27)
p. 4
“Total spends have reached highest ever level of INR1,18,475 crores in Q1 of FY27, growing 27% Y-o-Y.”
Salila Pande, page 4 of the filed PDF · View the filing
Retail spend: INR94,033 crores (Q1 FY27)
p. 4
“Retail spend also reached INR94,033 crores with a 14% Y-o-Y growth.”
Salila Pande, page 4 of the filed PDF · View the filing
Cards in force: around INR2.26 crores (Q1 FY27)
p. 4
“Cards in force have grown to around INR2.26 crores, witnessing a 7% growth Y-o-Y.”
Salila Pande, page 4 of the filed PDF · View the filing
Net interest margin: 10.8% (Q1 FY27)
p. 5
“With portfolio yield at 16% for the quarter, the net interest margin for the first quarter was at 10.8%.”
Salila Pande, page 5 of the filed PDF · View the filing
Capital adequacy ratio: 25.6% (Q1 FY27)
p. 5
“Our capital adequacy ratio remained at a healthy level of 25.6%.”
Salila Pande, page 5 of the filed PDF · View the filing
ROA: 3.9% (Q1 FY27)
p. 5
“ROA for the quarter was 3.9%, 51 basis points higher Y-o-Y and 26 basis points higher quarter-over-quarter.”
Salila Pande, page 5 of the filed PDF · View the filing
ROE: 16.5% (Q1 FY27)
p. 5
“ROE for the quarter was 16.5%, higher by 72 basis points Y-o-Y and 89 basis points quarter-over-quarter.”
Salila Pande, page 5 of the filed PDF · View the filing
Gross credit cost: 6.5% (Q1 FY27)
p. 5
“Our gross credit cost has improved by 116 basis points quarter-over-quarter and 301 basis points year-over-year to 6.5%, continuing the reducing trend over the last 1 year.”
Salila Pande, page 5 of the filed PDF · View the filing
Gross NPA: 2.04% (Q1 FY27)
p. 5
“Gross NPA has reduced by 36 basis points quarter-over-quarter and 102 basis points year-over-year to 2.04%.”
Salila Pande, page 5 of the filed PDF · View the filing
Net NPA: 0.83% (Q1 FY27)
p. 5
“Net NPA is below 1% at 0.83%, which is the lowest since Q3 of FY23.”
Salila Pande, page 5 of the filed PDF · View the filing
Daily average cost of funds: 6.6% (Q1 FY27)
p. 5
“Despite volatility in interest rates in Q4 FY26 and Q1 FY27, the daily average cost of funds remained stable at 6.6% for the quarter ended June 2027.”
Salila Pande, page 5 of the filed PDF · View the filing
Market share in cards in force: 18.6%
p. 4
“Our strong market position, with 18.6% market share in cards in force and 19.5% share in card spends reinforces confidence in our strategy and our ability to deliver sustainable growth in the evolving credit card markets.”
Salila Pande, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
ROA — 4% to 4.5% · medium term
stated as an aspiration by Salila Pande
p. 5
“The improved profitability and higher ROA put us on track to achieve our stated ROA guidance of 4% to 4.5% in medium term.”
Salila Pande, page 5 of the filed PDF · View the filing
Receivables/asset growth — second half of financial year 2027
stated conditionally by Salila Pande
p. 5
“We expect asset growth to pick up from the second half of financial year 2027, given higher new acquisition from this quarter onwards and festive season in Q3.”
Salila Pande, page 5 of the filed PDF · View the filing
Cost of funds
stated conditionally by Salila Pande
p. 5
“However, we expect cost of funds to trend higher in line with the market rates.”
Salila Pande, page 5 of the filed PDF · View the filing
Gross credit cost
stated conditionally by Salila Pande
p. 6
“we expect the gross credit cost to stay within the current range, subject to any adverse impact of Middle East conflict on the asset quality.”
Salila Pande, page 6 of the filed PDF · View the filing
Corporate spend share — around 20%
stated as an aspiration by Girish Budhiraja
p. 10
“So corporate spends, as we have stated earlier also, we would like it to be around 20% of our overall spend.”
Girish Budhiraja, page 10 of the filed PDF · View the filing
Cost to income ratio — 56% to 58% · FY27
stated firmly by Rashmi Mohanty
p. 15
“that should be in the range of about 56% to 58%.”
Rashmi Mohanty, page 15 of the filed PDF · View the filing
Net interest margin
stated as an aspiration by Rashmi Mohany
p. 16
“I would say NIM should be around this range only, Anand.”
Rashmi Mohany, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management expects revolvers to stay in a similar range with a slight downward bias, offset by growth in card acquisitions and EMI portfolio.
Answered by Salila Pande
Asked by Nilesh Sharma: How can we predict revolver trends in the current financial year?
p. 6
“we expect the revolver to continue to be stable where they are right now.”
Salila Pande, page 6 of the filed PDF · View the filing
Management said the product exists for some existing customers but is being withheld for new customers pending internal evaluation.
Answered by Salila Pande
Asked by Ameya Khandekar: Is there a personal loan on credit card product, and why is the company refraining from offering it broadly?
p. 8
“We are evaluating it, Ameya, as of now. It's an internal evaluation.”
Salila Pande, page 8 of the filed PDF · View the filing
Management declined to give numeric guidance but said credit cost trends will moderate further and receivables growth is expected in the second half.
Answered by Salila Pande
Asked by Rohan M: What is the guidance on credit cost by the exit quarter of FY27 and receivables growth outlook?
p. 9
“As of now, I'm not giving any guidance in terms of the numbers.”
Salila Pande, page 9 of the filed PDF · View the filing
Management said the model itself will likely only see enhancement, not relaxation, while the data refresh has already led to provision releases.
Answered by Salila Pande
Asked by Rajiv Mehta: Could the ECL model refresh provide a tailwind next year given improving delinquency trends?
p. 12
“Normally, we will not relax the model. At most, we may do some kind of an enhancement.”
Salila Pande, page 12 of the filed PDF · View the filing
Management said the portfolio overall is showing resilience with no particular cohort of concern.
Answered by Salila Pande
Asked by M.B. Mahesh: Are there any pockets of asset quality that still cause concern across ticket sizes?
p. 15
“Overall, the portfolio is showing resilience. There's no cohort per se, which is giving us concern as of now.”
Salila Pande, page 15 of the filed PDF · View the filing
Management said they analysed the portfolio including the IT sector specifically and are not seeing concerns, though they continue to monitor.
Answered by Salila Pande
Asked by Anand Dama: Is there stress being seen from job losses among salaried IT employees, particularly in Southern India?
p. 15
“there is no cohort where we see this kind of stress. And even for the IT sector, we did a separate analysis also. As of now, we are not seeing any concerns.”
Salila Pande, page 15 of the filed PDF · View the filing
Management said NIM should stay around current levels through continued interventions and cost of funds management.
Answered by Rashmi Mohany
Asked by Anand Dama: Where will margins settle given they have come off quarter-on-quarter?
p. 16
“I would say NIM should be around this range only, Anand. With the actions happening on the portfolio and smartly managing the costs of funds, we should maintain the NIM around these levels.”
Rashmi Mohany, page 16 of the filed PDF · View the filing
Risks flagged
Potential second order impact of geopolitical uncertainty on fuel prices, inflation and customer cash flows
p. 6
“We continue to remain watchful, particularly for any second order impact on fuel prices, inflation, and consequently, customer cash flows.”
Salila Pande, page 6 of the filed PDF · View the filing
Possible adverse impact of Middle East conflict on asset quality
p. 6
“we expect the gross credit cost to stay within the current range, subject to any adverse impact of Middle East conflict on the asset quality.”
Salila Pande, page 6 of the filed PDF · View the filing
Company remains carrying an overlay provision due to geopolitical uncertainties
p. 6
“However, we are still carrying forward INR70 crores of overlay, keeping in view the current geopolitical uncertainties.”
Salila Pande, page 6 of the filed PDF · View the filing
Monitoring for stress from job losses in IT sector reported anecdotally by other lenders
p. 15
“we also heard it. We also analysed our portfolio.”
Salila Pande, page 15 of the filed PDF · View the filing
Rise in cost of funds expected in line with market rates
p. 5
“we expect cost of funds to trend higher in line with the market rates.”
Salila Pande, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.