SBI Card Q3 Results: Profit Jumps 45% to ₹557 Crore in FY26

Introduction to Q3 Performance

SBI Cards and Payment Services Limited announced a strong financial performance for the third quarter of the financial year 2025-26, ending December 31, 2025. The company reported a consolidated net profit of ₹557 crore, marking a significant 45% year-on-year increase from ₹383.23 crore in the corresponding quarter of the previous year. This growth was primarily fueled by a substantial rise in consumer spending and an increase in fee-based income, reflecting a healthy trend in the credit card industry.

Detailed Financial Performance

The company's total revenue from operations grew by 12% year-on-year, reaching ₹5,353 crore in Q3 FY26, compared to ₹4,767 crore in Q3 FY25. This steady revenue growth underscores the company's ability to expand its business operations effectively. The robust performance also led to an improvement in key profitability metrics. The Return on Average Assets (ROAA) stood at 3.2%, a notable improvement from 2.4% in the same quarter last year. Similarly, the Return on Average Equity (ROAE) improved to 14.7%, up from 11.5% in Q3 FY25, indicating enhanced efficiency in generating profits from shareholder equity.

Operational Highlights and Business Growth

Operational metrics showed significant strength during the quarter. Total spends on SBI cards surged by an impressive 33% year-on-year to ₹1,14,702 crore. This highlights increased transaction volumes and higher consumer confidence. The company's cardholder base also expanded, with cards-in-force growing by 8% to reach 2.18 crore. Furthermore, total receivables saw a 4% increase, amounting to ₹57,213 crore. These figures point to a solid expansion in both customer acquisition and usage, reinforcing SBI Card's strong market position.

Income and Expense Analysis

A closer look at the income statement reveals a diversified revenue stream. Interest income grew by 6% to ₹2,536 crore, while fees and other revenue saw a more substantial increase of 17% to ₹2,591 crore. This indicates a successful strategy in growing both interest-earning assets and transaction-based fees. On the expense side, finance costs saw a welcome decrease of 5% to ₹785 crore. However, total operating costs rose by 23% to ₹2,597 crore, reflecting investments in business expansion and higher operational activity to support the growth in transaction volumes.

Key Financial Metrics Summary

Asset Quality and Capital Adequacy

SBI Card maintained a stable asset quality profile during the quarter. The Gross Non-Performing Assets (GNPA) were recorded at 2.86% of gross advances, while Net Non-Performing Assets (NNPA) stood at 1.28%. These figures suggest prudent risk management practices. The company's financial stability is further supported by a strong capital base. The Capital Adequacy Ratio was healthy at 24.4%, with Tier 1 capital at 19.1%, well above the regulatory requirements. The total balance sheet size reached ₹67,365 crore as of December 31, 2025, with a net worth of ₹15,424 crore.

Market Reaction and Outlook

The strong quarterly results were received positively by the market. Ahead of the announcement on January 28, 2026, shares of SBI Cards closed higher, indicating investor optimism. The company's performance, particularly the sharp rise in profits and spending, has surpassed many analyst expectations. The consistent growth in its card base and transaction volumes, coupled with stable asset quality, positions SBI Card well for future growth. The company's focus remains on expanding its customer base and leveraging digital channels to drive transaction growth while maintaining a close watch on credit quality.

Conclusion

In summary, SBI Cards and Payment Services delivered a strong performance in the third quarter of FY26, characterized by a significant 45% jump in net profit and a 12% rise in revenue. The growth was broad-based, supported by a 33% surge in consumer spending, an expanding cardholder base, and improved return ratios. While operating costs increased in line with business expansion, the company managed its finances prudently, as seen in the reduction of finance costs and stable asset quality. The results reaffirm the company's robust market position and its ability to capitalize on the growing trend of digital payments in India.