SBFC Finance Limited (SBFC) AI Stock Analysis

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SBFC Finance Limited

(NSE:SBFC)

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Rating:62Neutral

Price Target:INR 93.00▲(4.00% Upside)

Action:reiterated

Date:08/27/26

Overall score is driven primarily by strong income-statement growth, tempered by a major cash-flow weakness (consistently negative operating and free cash flow) and meaningful leverage. Technicals are supportive with the stock trading above key moving averages, but overbought RSI reduces the technical contribution. Valuation is reasonable for a growth lender but not especially cheap, and no dividend yield data provides limited downside support.

Positive Factors

Revenue GrowthRapid multi-year revenue expansion, including another sharp increase in 2026, indicates strong lending growth and customer acquisition. If maintained, this scale can support greater operating leverage, broaden the asset base, and strengthen SBFC’s position in its target MSME market over coming quarters.

Negative Factors

Persistent Cash BurnConsistently negative operating and free cash flow means rapid balance-sheet expansion is consuming cash rather than funding itself. This keeps SBFC dependent on continued access to borrowings and other funding capacity, increasing liquidity sensitivity and limiting flexibility if growth or funding conditions weaken.

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

Market Cap: INR 99.66B
Dividend Yield: ―
Average Volume (3M): 351.47K
Price to Earnings (P/E): 19.3
Beta (1Y): 1.08
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 revenue and net income growth with solid recent margins supports a positive view, but persistent negative operating/free cash flow and meaningful leverage make growth appear funding-intensive and raise liquidity/funding risk.

Income Statement

82Very Positive

Balance Sheet

64Positive

Cash Flow

28Negative

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 SentimentNeutral

Last Price89.42

Price Trends

50DMA89.50Negative

100DMA91.12Negative

200DMA91.92Negative

Market Momentum

MACD0.50Negative

RSI53.89Neutral

STOCH74.27Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SBFC, the sentiment is Neutral. The current price of 89.42 is above the 20-day moving average (MA) of 86.05, below the 50-day MA of 89.50, and below the 200-day MA of 91.92, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 74.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	82Outperform	INR 28.49B	5.49	―	―	19.64%	296.19%
IN:FIVESTAR	70Outperform	INR 126.01B	11.79	―	0.45%	8.86%	0.71%
IN:SBFC	62Neutral	INR 97.86B	19.30	―	―	28.39%	28.14%
IN:MASFIN	62Neutral	INR 47.99B	11.62	―	0.75%	22.71%	23.45%
IN:PAISALO	59Neutral	INR 72.35B	26.68	―	0.13%	23.67%	26.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:INDOSTAR	48Neutral	INR 32.67B	-8.36	―	―	-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	89.42	-19.23	-17.70%
IN:FIVESTAR	Five-Star Business Finance Limited	446.35	-193.52	-30.24%
IN:INDOSTAR	IndoStar Capital Finance Limited	201.15	-39.45	-16.40%
IN:MASFIN	MAS Financial Services Ltd.	266.70	-37.02	-12.19%
IN:PAISALO	Paisalo Digital Ltd.	78.01	44.59	133.43%
IN:SATIN	Satin Creditcare Network Ltd	265.55	113.90	75.11%

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