SBI Card Q4 FY26: Profit up 14%, NIM at 11.1%

SBI Cards and Payment Services Ltd (NSE: SBICARD) discussed its Q4 and FY26 performance in an earnings call held on April 27, 2026, with Managing Director and CEO Salila Pande outlining improved profitability and margin trends. The company said it remained focused on India’s digital payments shift while staying vigilant on the broader geopolitical and economic landscape. Management highlighted growth momentum across both POS (PASS) and online channels during the quarter. The call also addressed questions on slower additions, customer attrition, revolvers, funding costs, other income volatility, and provisioning buffers.

Key Q4 FY26 numbers management highlighted

SBI Card reported total income (revenue) of INR 5,187 crore in Q4 FY26, up 7% year-on-year. Profit after tax (PAT) for the quarter rose 14% year-on-year to INR 609 crore, compared with INR 534 crore in Q4 FY25. Management attributed the quarterly outcome to healthy spend-based income and lower credit costs versus the previous quarter. Receivables in Q4 FY26 stood at INR 56,926 crore, reflecting around 2% year-on-year growth.

Full-year FY26 performance snapshot

For FY26, SBI Card reported total income of INR 20,708 crore, up 11% year-on-year. FY26 PAT was INR 2,167 crore, up 13% year-on-year, according to management’s remarks on the call. The company said it remained optimistic on the long-term trajectory of consumer credit and digital payments, while positioning FY27 as a year to pursue profitable growth in a disciplined manner.

Margin trend: NIM ticks up sequentially

Management said the net interest margin (NIM) improved to 11.1% in Q4 FY26, compared with 11.0% in Q3 FY26. For the full year, SBI Card reported FY26 NIM of 11.2%, described as higher by 31 basis points. In response to questions on funding, management clarified that the NIM and cost-of-funds disclosures in the company’s table are based on a “13-point average,” with a separate daily average cost-of-funds metric also tracked.

Cost lines: finance costs down, operating costs up

Alongside the call transcript, the results summary shared in the provided material showed finance costs fell 10% year-on-year to INR 714 crore in Q4 FY26 from INR 795 crore in Q4 FY25. Total operating costs rose 24% year-on-year to INR 2,561 crore from INR 2,073 crore. Impairment losses and bad debts expenses were reported at INR 1,097 crore, down 12% year-on-year from INR 1,245 crore.

Fee and other income: growth, but with one-offs flagged

The material also noted fees and other revenues increased 13% year-on-year to INR 2,553 crore in Q4 FY26 from INR 2,259 crore. On the call, an analyst flagged that “other income” in recent quarters was around INR 200 crore, versus roughly INR 100 crore earlier, and asked about sustainability. Management indicated there were one-offs within other income (as referenced by an analyst who said they could be seen in notes to accounts), and the discussion framed the step-up as not purely run-rate.

Provisions and overlays discussed during Q&A

Provisioning remained a focus in the Q&A. One analyst asked about INR 220 crore of additional provisions carried by the company and the INR 100 crore increase during the quarter, including whether it was driven by an ECL refresh or incremental overlays routed through P&L. The exchange indicated management overlay was being retained to a large extent, and that profit would have been higher without the additional provisioning, as acknowledged during the discussion.

Recoveries and write-offs: management commentary

An analyst noted recoveries “nearing almost INR 190 crore” and asked about the size of the written-off book and the scope for further recoveries. Management said SBI Card does not disclose the written-off portfolio size, but that recovery efforts on written-off accounts had been intensified and were showing benefits. Management also said recoveries could remain in a similar range, while pointing to a downward trajectory in write-offs.

Market reaction and broker targets mentioned in the material

The provided material referenced that SBI Card slipped 3% after posting Q4 results. It also cited broker notes with updated targets: Emkay with a target of INR 850 (dated April 28, 2026) and Motilal Oswal with a target of INR 760 (dated April 27, 2026). These targets were presented alongside stated upsides in the source text, without further detail on assumptions.

Summary table of reported metrics

What the earnings call availability means for investors

SBI Card also disclosed that the complete audio recording of the Q4 FY26 earnings call was made available on the company’s official website. The material stated that the disclosure was made under SEBI Regulation 30 requirements for listed companies. For investors tracking credit card lenders, the call commentary adds context around margin movement, cost behaviour, provisioning buffers, and the pace of receivables growth.

Conclusion

SBI Card’s Q4 FY26 results combined mid-single-digit income growth with a stronger rise in profit, supported by improved NIM and lower finance and impairment costs year-on-year. Management indicated preparedness for FY27 with “adequate buffers” and reiterated a disciplined approach to profitable growth, while monitoring the external environment. The next key datapoints for investors will be subsequent-quarter trends in receivables growth, the trajectory of overlays and credit costs, and the stability of margins as funding conditions evolve.