SBI Cards reports standalone Q1FY27 net profit of Rs 664.44 cr
Revenue rose to Rs 5,040.55 cr, while operating margin stood at 55.90% in the quarter ended 30 June 2026.
Filed 24 Jul 2026, 16:18 IST · after market close · SBI Cards & Payment Services Ltd (SBICARD)
Key takeaways
- Standalone net profit rose +19.51% YoY to Rs 664.44 cr even as operating margin narrowed 4.42 percentage points.
- Expenses grew +14.88% YoY against revenue growth of +3.36%, putting operating margin 16.32 percentage points below the 72.22% median for 22 reported Financial Services peers.
- The company sourced more than approximately one million new accounts in Q1FY27, while RuPay UPI spends grew more than +13% QoQ.
Price around the results
Profit growth came despite an operating squeeze
SBI Cards reported standalone net profit growth of +19.51% YoY in Q1FY27, while profit before tax rose +19.34%. Lower interest expense, down -8.40% YoY, supported the increase, and the tax rate was only 0.10 percentage points lower. Other income contributed 18.45% of profit before tax, making it a material part of reported earnings quality.
Costs widened the margin gap in Q1FY27
Expenses grew +14.88% YoY against revenue growth of +3.36%, narrowing operating margin by 4.42 percentage points. Sequentially, expenses also grew faster than revenue, +3.34% versus +2.15%, and margin fell another 0.50 percentage points. The 55.90% operating margin was below the 72.22% median of 22 Financial Services peers that had reported the quarter, placing SBI Cards seventh from the bottom.
Account sourcing and spending remained volume supports
Management said the company sourced more than approximately one million new accounts during Q1FY27. It also said retail spending increased across a broad range of categories, while RuPay UPI spends rose more than +13% QoQ. On longer-term targets, the company said it aims for 25% of cards issued to use recycled plastic by FY2029-30 and for a 50% reduction in Scope 2 emissions versus the 2019 baseline by FY2026-27.
Margin remains below last year's level after a brief recovery
Operating margin fell from 60.32% in Q1FY26 to 55.90% in Q1FY27. The quarterly trend shows a sharp decline in Q2FY26, followed by recovery in Q3FY26 and Q4FY26, before a 0.50 percentage-point sequential dip in Q1FY27. Results were filed after market close, so there is no post-result stock reaction yet; after the previous eight results, the stock fell six times and its median absolute move was 1.91%.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,041 cr | ₹4,935 cr | +2.15% | +3.36% |
| Other income | ₹165 cr | ₹253 cr | -34.74% | +4.00% |
| Expenses | ₹2,223 cr | ₹2,151 cr | +3.34% | +14.88% |
| Operating profit | ₹2,817 cr | ₹2,783 cr | +1.23% | -4.23% |
| Operating margin (%) | 55.90% | 56.40% | — | — |
| Interest | ₹745 cr | ₹714 cr | +4.33% | -8.40% |
| Depreciation | ₹31 cr | ₹32 cr | -5.60% | -12.90% |
| Profit before tax | ₹893 cr | ₹816 cr | +9.46% | +19.34% |
| Tax | ₹229 cr | ₹207 cr | +10.69% | +18.86% |
| Net profit | ₹664 cr | ₹609 cr | +9.05% | +19.51% |
| EPS (₹) | ₹6.98 | ₹6.40 | +9.06% | +19.52% |
Operating margin of 55.90% compares with a Financial Services sector median of 72.22% across 22 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company sourced more than approximately one million new accounts in Q1 FY27.
- Retail spending was higher across a broad range of categories in Q1 FY27.
- UPI spends on RuPay cards grew by more than 13% quarter over quarter in Q1 FY27.
Guidance & outlook
- The company targets 25% of credit cards issued being made of recycled plastic by FY2029-30.
- The company targets a 50% reduction in Scope 2 emissions versus the 2019 baseline by FY2026-27.
Problems & risks
- Daily weighted average cost of funds increased by 3 basis points quarter over quarter.
What to watch
- Whether expenses continue to grow faster than revenue after +14.88% YoY versus +3.36% in Q1FY27.
- Whether operating margin recovers from 55.90% toward the 60.32% recorded in Q1FY26.
- Whether new-account sourcing remains above approximately one million and RuPay UPI spends continue to show more than +13% QoQ growth.