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

Introduction to SBI Card's Q3 Performance

SBI Cards and Payment Services Limited announced a strong financial performance for the third quarter of the fiscal year 2025-26. The company reported a consolidated net profit of ₹557 crore, marking a significant 45% increase from the ₹383 crore recorded in the same period of the previous year. This growth was supported by a healthy rise in revenue and robust consumer spending, highlighting a positive trend for the credit card issuer in a competitive market.

Detailed Financial Highlights

For the quarter ending December 31, 2025, SBI Card's total revenue from operations grew by 12% year-on-year, reaching ₹5,353 crore compared to ₹4,767 crore in Q3 FY25. The company's profitability metrics also showed considerable improvement. The Return on Average Assets (ROAA) improved to 3.2% from 2.4% in the corresponding quarter last year. Similarly, the Return on Average Equity (ROAE) increased to 14.7%, up from 11.5% in Q3 FY25, indicating more efficient use of its equity base to generate profits.

Analysis of Income and Expenditure

A closer look at the company's income statement reveals a diversified revenue stream. Interest income for the quarter grew by 6% to ₹2,536 crore. More notably, income from fees and other revenue sources saw a 17% jump to ₹2,591 crore, reflecting increased transaction volumes and service usage. On the expenditure side, finance costs saw a welcome decrease of 5%, amounting to ₹785 crore. However, total operating costs rose by 23% to ₹2,597 crore, a likely consequence of business expansion and increased operational activity to support higher transaction volumes.

Key Business Metrics Show Strong Growth

The company's operational metrics underscored the strong quarterly performance. Total spends on SBI cards surged by an impressive 33% year-on-year, reaching ₹1,14,702 crore. This indicates heightened consumer confidence and increased usage of credit for transactions. The number of cards-in-force grew by 8%, with the total count reaching 2.18 crore. Furthermore, the company's receivables portfolio expanded by 4% to ₹57,213 crore, reflecting a steady growth in its loan book.

Asset Quality and Balance Sheet Stability

SBI Card maintained a stable asset quality profile during the quarter. The Gross Non-Performing Assets (GNPA) ratio stood at 2.86% of gross advances, while the Net Non-Performing Assets (NNPA) were at 1.28%. These figures suggest that the company has managed its credit risk effectively despite the growth in its receivables. The total balance sheet size expanded to ₹67,365 crore, with a net worth of ₹15,424 crore. The company’s Capital Adequacy Ratio remained strong at 24.4%, well above the regulatory requirements, providing a solid foundation for future growth.

Market Reaction and Outlook

The financial results were received positively by the market. Ahead of the announcement, the shares of SBI Cards and Payment Services Ltd. closed 1.75% higher at ₹784.50 on the National Stock Exchange. The strong performance in spends, coupled with stable asset quality and healthy capital ratios, positions the company well. The sustained growth in both interest and fee-based income streams provides a balanced revenue model that can support continued profitability. The company's reaffirmed 'AAA/Stable' credit ratings from CRISIL and ICRA further attest to its strong financial standing and stable outlook.

Conclusion

In summary, SBI Card delivered a robust performance in the third quarter of FY26, characterized by a substantial increase in net profit and steady revenue growth. The impressive surge in consumer spending and a growing customer base were key drivers of this success. While operating costs have risen in line with business expansion, the company's stable asset quality and strong capital position provide a solid buffer. The results reflect both a healthy consumer credit market and the company's ability to capitalize on it effectively.