SBFC Finance Limited (SBFC) AI Stock Analysis

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SBFC Finance Limited

(NSE:SBFC)

Select Model

Rating:71Outperform

Price Target:INR 98.00▲(8.78% Upside)

Action:reiterated

Date:08/27/26

The company's exceptional revenue and profit growth are the primary drivers of the score, supported by a healthy balance sheet. The main risk is the negative cash flow from aggressive expansion, which is currently manageable. Technicals show bullish momentum but with caution due to an elevated RSI.

Positive Factors

Revenue and profit growthStrong multi-year revenue and net income expansion indicates meaningful scaling in the lending franchise. Solid 2024–2025 margins suggest growth is translating into earnings, supporting reinvestment, broader distribution, and stronger operating capacity over the next several quarters.

Negative Factors

Persistent cash consumptionConsistently negative operating and free cash flow means rapid loan-book expansion is consuming cash rather than internally funding growth. Continued cash usage increases dependence on external funding and balance-sheet capacity, potentially constraining expansion if funding availability or terms become less favorable.

SBFC Finance Limited (SBFC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 99.83B
Dividend Yield: ―
Average Volume (3M): 351.98K
Price to Earnings (P/E): 19.4
Beta (1Y): 1.07
Revenue Growth: 28.39%
EPS Growth: 28.14%
Country: India
Employees: 5,055
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

SBFC Finance Limited Business Overview & Revenue Model

Company Description

SBFC Finance Limited operates as a financial services provider, delivering a range of funding solutions. The company's primary offerings include secure credit facilities for Micro, Small, and Medium Enterprises (MSMEs) and loans backed by gold. Addit...

How the Company Makes Money

SBFC primarily makes money through interest income earned on loans it originates and holds on its balance sheet. The core revenue stream is the spread between (a) interest charged to borrowers on secured MSME and small business loans and (b) the comp...

SBFC Finance Limited Financial Statement Overview

Summary

Strong income statement with 55% revenue growth and 27% net margin, balanced by a solid balance sheet. However, negative operating cash flows due to rapid loan expansion weigh on the overall financial health.

Income Statement

88Very Positive

Balance Sheet

75Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	19.09B	16.60B	12.37B	9.37B	6.37B	4.10B
Gross Profit	10.34B	8.37B	6.75B	4.13B	2.24B	1.06B
EBITDA	8.09B	7.35B	5.45B	3.37B	2.19B	1.15B
Net Income	5.10B	4.51B	3.45B	2.37B	1.50B	645.21M
Balance Sheet
Total Assets	136.85B	110.85B	85.96B	70.63B	57.46B	45.15B
Cash, Cash Equivalents and Short-Term Investments	14.54B	6.45B	7.04B	7.00B	3.63B	9.21B
Total Debt	93.38B	71.62B	52.64B	39.96B	37.39B	29.40B
Total Liabilities	96.36B	73.60B	54.06B	42.85B	40.19B	32.28B
Stockholders Equity	40.49B	37.25B	31.90B	27.78B	17.27B	12.87B
Cash Flow
Free Cash Flow	0	-19.07B	-14.24B	-11.67B	-12.53B	-8.31B
Operating Cash Flow	0	-18.93B	-14.15B	-11.55B	-12.45B	-8.22B
Investing Cash Flow	0	1.31B	1.74B	1.59B	2.06B	6.52B
Financing Cash Flow	0	19.77B	12.81B	10.37B	10.71B	1.83B

SBFC Finance Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price90.09

Price Trends

50DMA89.14Positive

100DMA91.03Negative

200DMA91.76Negative

Market Momentum

MACD0.68Negative

RSI54.95Neutral

STOCH64.88Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SBFC, the sentiment is Positive. The current price of 90.09 is above the 20-day moving average (MA) of 86.11, above the 50-day MA of 89.14, and below the 200-day MA of 91.76, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 64.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SBFC.

SBFC Finance Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SBFC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SATIN	81Outperform	INR 29.69B	5.42	―	―	19.64%	296.19%
IN:SBFC	71Outperform	INR 98.64B	19.40	―	―	28.39%	28.14%
IN:FIVESTAR	70Outperform	INR 132.54B	11.69	―	0.45%	8.86%	0.71%
IN:MASFIN	62Neutral	INR 48.09B	11.57	―	0.75%	22.71%	23.45%
IN:PAISALO	59Neutral	INR 73.81B	26.45	―	0.13%	23.67%	26.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:INDOSTAR	48Neutral	INR 33.62B	-8.66	―	―	-0.48%	-153.07%

* General Sector Average

Performance Comparison

IN:SBFC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SBFC	SBFC Finance Limited	90.09	-20.61	-18.62%
IN:FIVESTAR	Five-Star Business Finance Limited	442.35	-186.86	-29.70%
IN:INDOSTAR	IndoStar Capital Finance Limited	207.90	-35.40	-14.55%
IN:MASFIN	MAS Financial Services Ltd.	266.20	-43.98	-14.18%
IN:PAISALO	Paisalo Digital Ltd.	77.29	43.17	126.54%
IN:SATIN	Satin Creditcare Network Ltd	262.85	110.15	72.13%

SBFC Finance Limited Corporate Events

SBFC Finance clears Sept-quarter unaudited results with clean review

Oct 24, 2026

SBFC Finance Limited’s board has approved the unaudited financial results for the quarter and half year ended 30 September 2026, following a meeting held on 24 October 2026. The results were prepared under Indian Accounting Standard 34 and relevant R...

SBFC Finance schedules Q2 FY27 earnings call for October 26

Oct 21, 2026

SBFC Finance Limited has scheduled an earnings conference call on Monday, October 26, 2026, at 9:30 a.m. India Standard Time to discuss its financial results for the quarter and half year ended September 30, 2026. The call will feature senior managem...

SBFC Finance Files SEBI Compliance Certificate on Demat Activity for Q2 FY27

Oct 8, 2026

SBFC Finance Limited has submitted to the stock exchanges a compliance certificate for the quarter ended 30 September 2026 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing indicates that its registrar K...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 27, 2026

SBFC Finance Limited AI Stock Analysis