SBI Cards’ profit rose 14.06% but operating margin stayed below last year
Lower interest and other income supported earnings, while expenses grew faster than revenue and the stock fell 3.68% over five sessions.
Filed 27 Apr 2026, 14:39 IST · SBI Cards & Payment Services Ltd (SBICARD)
Key takeaways
- Standalone net profit rose +14.06% YoY even as operating profit fell -3.32%, helped by interest falling -10.27% and other income contributing 30.95% of pre-tax profit.
- Operating margin narrowed 2.45 percentage points YoY because expenses grew +9.20%, faster than revenue at +5.57%, despite a 0.36 percentage-point sequential recovery.
- The stock was down -3.68% five sessions after the results, versus a 3.03% median absolute post-results move across the last eight quarters.
Price around the results
Profit growth came below the operating line
These standalone results show net profit up +14.06% YoY, although operating profit declined -3.32%. Interest expense fell -10.27%, while other income rose +60.05% and accounted for 30.95% of pre-tax profit, making earnings quality an important part of the quarter’s reading. The tax rate also fell 0.34 percentage points YoY to support the profit conversion.
Margin recovered sequentially but remains below FY25 levels
Operating margin improved 0.36 percentage points QoQ because expenses fell -4.23%, slightly faster than revenue at -3.76%. The trend is a recovery from 24.58% in Q2FY26 to 26.17% in Q3FY26 and 26.53% in Q4FY26, but it remains below 29.48% in Q1FY26 and 28.98% in Q4FY25. Against 52 Financial Services peers that have reported, SBI Cards’ margin was 32.88 percentage points below the 59.41% median and ranked ninth from the bottom.
Management cited account sourcing and RuPay UPI growth
Management said new account sourcing exceeded 917,000 in Q4FY26. The company’s presentation also said UPI spending on RuPay cards grew by more than 10% QoQ. These operating indicators provide context for the quarter’s revenue growth of +5.57% YoY despite the pressure on operating margin.
The delayed stock reaction was weaker than the initial move
The stock was up +0.06% on the results day, but had declined -3.68% after five sessions and -6.94% after 15 sessions. That pattern is consistent with its recent history: seven of the last eight results reactions were negative, while the five-session move was larger than the 3.03% median absolute move.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,935 cr | ₹5,127 cr | -3.76% | +5.57% |
| Other income | ₹253 cr | ₹226 cr | +11.66% | +60.05% |
| Expenses | ₹3,625 cr | ₹3,785 cr | -4.23% | +9.20% |
| Operating profit | ₹1,309 cr | ₹1,342 cr | -2.43% | -3.32% |
| Operating margin (%) | 26.53% | 26.17% | — | — |
| Interest | ₹714 cr | ₹785 cr | -9.10% | -10.27% |
| Depreciation | ₹32 cr | ₹34 cr | -4.60% | — |
| Profit before tax | ₹816 cr | ₹749 cr | +8.92% | +13.55% |
| Tax | ₹207 cr | ₹192 cr | +7.35% | +12.07% |
| Net profit | ₹609 cr | ₹557 cr | +9.46% | +14.06% |
| EPS (₹) | ₹6.40 | ₹5.85 | +9.40% | +13.88% |
Operating margin of 26.53% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.06% | -0.76% |
| Next session | -3.41% | — |
| 5 sessions | -3.68% | -4.24% |
| 15 sessions | -6.94% | — |
| 30 sessions | -13.37% | — |
Volume on the results session was 1.59× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- New account sourcing exceeded 917,000 in Q4 FY26.
- UPI spends on RuPay cards grew by more than 10% quarter over quarter in Q4 FY26.
What to watch
- Whether operating margin holds above 26.53% after the YoY decline of 2.45 percentage points.
- Whether other income’s 30.95% share of pre-tax profit declines in the next quarter.
- New account sourcing relative to the 917,000-plus reported in Q4FY26 and RuPay UPI spending against the more-than-10% QoQ growth reported.