SBI Cards Q2 FY27 Results: Profit Rises 75% on Lower Costs

SBI Cards and Payment Services reported a sharp improvement in profitability for the second quarter of FY27, with profit after tax rising 75% year-on-year to ₹778 crore. The company attributed the increase mainly to improved credit costs, while revenue from operations grew 4% to ₹5,141 crore. SBI Card also posted better asset-quality indicators and continued to add new customers during the quarter. The company discussed these developments in its Q2 FY27 earnings call held on October 23, 2026. It subsequently disclosed that the audio recording of the call had been posted under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Earnings call recording posted after Q2 results

The earnings call was scheduled for 3:00 pm IST on October 23, 2026, for analysts and investors to discuss the quarterly performance. SBI Card said the audio recording of the Q2 FY27 call was posted on the same date. The disclosure falls under the requirements for analyst and investor meeting outcomes. The call was led by Salila Pandey, Managing Director and Chief Executive Officer of SBI Cards and Payment Services. Management focused on customer acquisition, engagement, operating efficiency and portfolio quality. These areas were central to the company’s stated approach of building a sustainable and balanced card portfolio.

Profit growth was led by lower credit costs

Profit after tax for the quarter stood at ₹778 crore, compared with the corresponding level a year earlier, representing a 75% increase. SBI Card said the improvement was mainly driven by lower credit costs. Gross credit cost improved to 5.6%, down 98 basis points sequentially, according to the earnings-call details. Lower credit costs supported profit growth even as revenue expansion remained moderate. The quarterly result shows how credit performance can materially affect profitability for a card issuer, where provisions and write-offs are significant operating variables.

Revenue growth remained measured

Revenue from operations increased 4% year-on-year to ₹5,141 crore in Q2 FY27. This was substantially slower than the growth in net profit, underlining the importance of the reduction in credit costs during the period. The provided results update also referred to revenue of ₹5,302 crore, while the company’s earnings-call financial metric specified revenue from operations of ₹5,141 crore. Revenue from operations is therefore used for the operating comparison in this report. Management also noted pressure from rising funding costs, an important factor for lenders and card issuers that rely on borrowed funds to finance receivables.

Operating costs and cost-to-income ratio increased

Operating cost rose 7% year-on-year to ₹2,649 crore during the quarter. The cost-to-income ratio was 58.7%, up 193 basis points from a year earlier. The increase indicates that operating expenses grew faster than revenue from operations in the quarter. However, the impact on earnings was offset by the improvement in credit cost. SBI Card cited operating efficiency among its strategic priorities, but the reported ratio also gives investors a measure of cost pressure alongside the company’s expansion plans.

Asset quality improved to post-pandemic low

Gross non-performing assets declined to 1.9%, described as the company’s lowest level since the pandemic. The improvement in gross NPA and gross credit cost was a key part of the quarter’s earnings recovery. Better collections and portfolio quality can reduce the amount a card issuer needs to provide for potential defaults. SBI Card said it remained focused on maintaining a healthy and well-balanced portfolio. The Q2 performance therefore combined a stronger reported profit with an improvement in the quality of outstanding customer receivables.

Customer additions supported the card base

Cards in force reached about 2.32 crore, up 8% year-on-year. SBI Card added more than 10 lakh new accounts during the quarter, an 18% year-on-year increase. Net card additions for FY27 up to August were 8.6 lakh, which management said was the highest in the industry. The company also launched the Google Pay Flex SBI Card during the quarter to expand its co-branded card offering. Customer acquisition remains relevant for future spending and receivables growth, although new-account growth also requires continued attention to underwriting and credit quality.

Spending data showed mixed momentum

Total card spends were ₹1,10,689 crore in Q2 FY27, up around 3% year-on-year. Retail spends reached a record ₹95,299 crore, increasing 6% year-on-year. SBI Card said the spending trend was affected by seasonality because festive sales fell in the third quarter this year. Based on RBI data for August 2026, the company said its spends market share had reached 19% in FY27. The difference between total spend growth and retail spend growth reflects the separate contribution of spending categories to the company’s transaction volumes.

Key Q2 FY27 operating and financial metrics

What the Q2 result means for investors

The quarter’s main financial feature was the gap between modest revenue growth and strong profit growth. Lower credit costs and improved asset quality were the primary drivers of that difference. At the same time, higher operating costs, a higher cost-to-income ratio and funding-cost pressure remain relevant to the earnings outlook. Following the call, a market report said the stock fell 3.23%, indicating investor attention remained on margins and the pace of future improvement. Management indicated that receivables growth was expected in the second half and referred to mid-teens to high-teens retail spend growth for FY27, while identifying funding costs and geopolitical uncertainty as risks.

Outlook hinges on growth quality and costs

SBI Card enters the second half of FY27 with a larger customer base, improved asset-quality indicators and a higher spends market share. The festive period falling in the third quarter may influence transaction data after the seasonally affected second quarter. The company has also maintained its focus on profitable acquisition rather than customer additions alone. For investors, the key factors to track will be receivables growth, spending growth, funding costs, operating expenses and credit-cost trends. SBI Card has made the October 23 earnings-call recording available, providing further context on management’s Q2 FY27 discussion and stated priorities.