Margin expansion drives SBI Cards' Q2FY27 profit up 74.83% YoY
Expenses fell 8.16% YoY against 3.62% revenue growth, lifting operating margin to 33.16% despite higher interest costs.
Filed 23 Oct 2026, 14:37 IST · SBI Cards & Payment Services Ltd (SBICARD)
Key takeaways
- Standalone net profit rose 74.83% YoY to Rs 777.60 cr as expenses fell 8.16% while revenue grew 3.62%.
- Operating margin expanded 3.33 percentage points QoQ to 33.16%, extending its rise across five successive reported quarters.
- Other income contributed 15.41% of pre-tax profit, while the tax rate was 25.64%, only 0.20 percentage points below last year.
Price around the results
Expense control widened the operating spread
SBI Cards reported standalone net profit growth of 74.83% YoY and 17.03% QoQ. The main operating driver was expense control: costs fell 8.16% YoY and 2.86% QoQ, while revenue rose 3.62% and 1.98%, respectively. That combination lifted operating margin by 8.58 percentage points YoY and 3.33 percentage points QoQ.
Margin recovery has continued for five quarters
Operating margin has risen in every reported quarter from Q2FY26 through Q2FY27, moving from 24.58% to 33.16%. The sequential improvement came despite interest expense rising 5.74%; management said daily weighted average cost of funds increased by 18 basis points QoQ. The tax rate was broadly stable, so the profit increase was not primarily a tax-rate benefit.
Profit quality and sector position remain mixed
Other income was 15.41% of pre-tax profit, making it a meaningful contributor, although it fell 8.18% YoY and 2.23% QoQ. Among 25 Financial Services peers that have reported, SBI Cards' 33.16% operating margin was 31.34 percentage points below the 64.50% median and ranked fifth from the bottom.
New account sourcing and UPI activity supported momentum
Management said the company sourced around one million or more new accounts in Q1 and Q2, with this metric growing 18% YoY. The company told investors that UPI spends grew by more than 17% in Q2FY27 versus Q1FY27. The presentation also said SBI Card launched the Google Pay Flex SBI Card.
No current market reaction is available yet
The results are too fresh for a reported stock reaction. Across the last eight result reactions, the stock rose three times and fell five times, with a median absolute move of 3.03%, indicating that the current response will need to be judged against a mixed history.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,141 cr | ₹5,041 cr | +1.98% | +3.62% |
| Other income | ₹161 cr | ₹165 cr | -2.23% | -8.18% |
| Expenses | ₹3,436 cr | ₹3,537 cr | -2.86% | -8.16% |
| Operating profit | ₹1,704 cr | ₹1,503 cr | +13.37% | +39.78% |
| Operating margin (%) | 33.16% | 29.83% | — | — |
| Interest | ₹787 cr | ₹745 cr | +5.74% | +3.58% |
| Depreciation | ₹33 cr | ₹31 cr | +6.65% | -7.06% |
| Profit before tax | ₹1,046 cr | ₹893 cr | +17.08% | +74.35% |
| Tax | ₹268 cr | ₹229 cr | +17.24% | +72.98% |
| Net profit | ₹778 cr | ₹664 cr | +17.03% | +74.83% |
| EPS (₹) | ₹8.17 | ₹6.98 | +17.05% | +74.95% |
Operating margin of 33.16% compares with a Financial Services sector median of 64.50% across 25 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Around one million or more new accounts were sourced in Q1 and Q2, growing 18% year-on-year.
- UPI spends grew by more than 17% in Q2 FY27 compared with Q1 FY27.
New products
- SBI Card launched the Google Pay Flex SBI Card.
Problems & risks
- Daily weighted average cost of funds increased by 18 basis points quarter-on-quarter.
What to watch
- Whether operating margin holds above 33.16% after the five-quarter improvement streak.
- Whether interest expense remains controlled after rising 5.74% QoQ and management's reported 18-basis-point increase in cost of funds.
- Whether other income remains near 15.41% of pre-tax profit.