Slides
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Investor Presentation Q3 FY 2026
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2 Safe Harbor This presentation and the accompanying slides (‘Presentation”), which have been prepared by SBFC Finance Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Forward looking statements concerning the Company's future business prospects and business profitability are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of the forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
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3 Executive Summary – Dec 2025 1 Profitability Profit after tax grew 34% YoY to ₹118 crore for the quarter 2 Growth AUM grew 29% YoY and 5.4% QoQ to ₹10,478 crore. 3 Credit Quality Gross NPA at 2.71% with PCR of 46.21% 4 Operating Efficiency Cost-to-AUM ratio improved to 3.93% 5 Return Ratios RoA of 4.67% and RoE of 14.56%
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4 Executive Summary – Q3 FY26 Gross NPA PAT Disbursement1 Yield/Spread RoAAUM Branches Opex to AAUM RoATE Asset Under Management 10,478 +29% +5% 2.71% +1 bp -6 bps 118 +34% +8% 699 0% -14% 17.78% / 9.04% -3 / +54 bps -23 / -1 bps 4.67% +18 bps +11 bps 230 +33 +10 3.93% -69 bps -47 bps 14.56% +181 bps +47 bps YoY QoQ 1Secured MSME All figures are in Rs. crore
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5 Executive Summary – 9M FY26 Gross NPA PAT Disbursement1 Yield/Spread RoAAUM Branches Opex to AAUM RoATE Asset Under Management 10,478 +29% 2.71% +1 bp 328 +31% 2,323 +22% 17.92% / 8.93% +22 / +55 bps 4.58% +4 bps 230 +33 4.29% -38 bps 14.07% +149 bps YoY 1Secured MSME All figures are in Rs. crore
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6 Opportunity: Market size (₹5 lakh - ₹30 lakh MSME financing) of ₹41 lakh crore, growing at 24%2 6 Executive Summary Team: Experienced, cycle-tested, professional management with strong corporate governance backed by marquee investors Focused Segment: Offering Secured MSME loan to small businesses with focus on ₹5 lakh - ₹30 lakh ticket size Pan-India Footprint: Diversified pan-India network with presence in 17 states & 2 UTs Credit Underwriting: Understanding of segment with a tested credit underwriting and risk management framework 230 branches 181 Cities 17 States 2 UTs 1 As of Mar-25 (Source – CRIF Data); 2 CAGR period over FY18 to FY25 (Source – CRIF Data)
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7 Focus Segment CAGR2 (%)Market Size1 (₹ tn) 19.4%9.7 24.4%4.0 25.8%0.7 Segment >₹0.3 cr ₹0.05– 0.3 cr <₹0.05 cr Total 18.5%14.4 SBFC Focus Segment – Customers Borrowing ₹5 Lakh to ₹30 Lakh Large segment within MSME of ₹4 lakh cr and growing at CAGR 24% Source: CRIF Data; 1 As of Mar-25; 2 CAGR period over FY18 to FY25
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8 778 1,156 1,648 2,221 3,192 4,943 6,822 8,747 10,478 2018 2019 2020 2021 2022 2023 2024 2025 9M 2026 Our Journey Investment by Clermont and Arpwood group AUM of INR 1000cr 50,000 customers 1,00,000 customers 150 Branches 150 cr PAT Credit rating upgraded to ‘A +’ 100 Branches All figures in ₹ Cr AUM Equity Listing on NSE and BSE. India ratings upgraded us to ‘AA -’ Included in MSCI Global Small Cap Index PAT CARE, ICRA Ratings Upgraded us to ‘AA-’ in Q2 FY25. 1,50,000 customers 3 25 36 85 65 150 237 345 328 AUM crossed INR 10,000cr in Q3 FY26
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Management Experienced, cycle-tested, professional management Aseem Dhru MD & CEO Mahesh Dayani Executive Director Narayan Barasia Chief Financial Officer Rajiv Thakker Chief Risk Officer Sai Prashant Menon Chief Collection Officer Sumeet Ghai Chief Human Resource Officer Ganesh Vaidya Chief Technology Officer Namrata Sajnani Chief Compliance Officer & CS Sanket Agrawal Chief Strategy Officer, Analytics & IR Agnivesh Kumar Head - Operations
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10 Koni Uttam Nayak Ex Senior Vice President, Visa Direct Organization at Visa Aseem Dhru MD & CEO Executive Directors Independent John Mescall Managing Director Clermont Group Jonathan Tatur Senior Vice President Clermont Group Surekha Marandi Ex Executive Director, RBI Neeraj Swaroop Board of Directors Strong corporate governance backed by long term investors Chairman of the Board Ex CEO – SCB, Singapore Ravi Venkatraman Ex Executive Director & CFO, Mahindra & Mahindra Financial Services Mahesh Dayani Executive Director Leroy James Langeveld Assistant General Counsel Clermont Group
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11 52.82% 6.88% 6.40% 19.53% 14.37% Shareholding Pattern Promoters Foreign Portfolio Investors Foreign Companies Mutual Funds, AIF, Insurance, Banks Individuals, Bodies Corporate Shareholding # Non-diluted Status as on December 31, 2025 Category of Shareholders % Share# Promoter Clermont Group 52.82% Other Major Shareholders SBI Mutual Fund 8.17% Amansa Capital 4.04% Malabar Funds 3.40% Aditya Birla Sun Life 3.06% Management & Employees hold 6.6% of diluted share capital
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12 CAGR: 33% Business Momentum Delivering Consistent AUM Growth YoY : 29% All figures in ₹ Cr. AUM QoQ : 5% 8,148 9,938 10,478 83% 83% 81% 16% 17% 19% 1% Q3 FY 25 Q2 FY 26 Q3 FY 26 Secured MSME LAG Others 4,943 6,822 8,747 79% 84% 83% 17% 15% 17% 3% 1% Mar-23 Mar-24 Mar-25 Secured MSME LAG Others
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13 QoQ: -15% 699 815 699 Q3 FY 25 Q2 FY 26 Q3 FY 26 AUM Secured MSME All figures in ₹ Cr Business Momentum – Secured MSME AUM Disbursement Value Disbursement Volume YoY: 25% QoQ: 4% 10.0710.029.54 ATS in ₹ Lakhs YoY: 0 % 6,781 8,196 8,497 Q3 FY 25 Q2 FY 26 Q3 FY 26 7,326 8,130 6,940 Q3 FY 25 Q2 FY 26 Q3 FY 26 QoQ: -14% YoY: -5%
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14 1,407 1,593 1,650 Q3 FY 25 Q2 FY 26 Q3 FY 26 124 123 112 Q3 FY 25 Q2 FY 26 Q3 FY 26 Business Momentum Co-origination – Validates our profitable origination Co-origination Disbursement (₹ Cr) Co-origination AUM (₹ Cr) 18%%1 15% 16% 21% 19% 19% 1Percentage is on Total Secured MSME Loans
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15 36.9% 13.7% 34.0% 15.4% South East North West 77 3369 51 South East North West 6 6 16 8 31 13 24 5 14 10 8 14 37 4 25 1 3 14 1 1 Business Momentum No concentration risk & well distributed growth Present in 17 states, 2 UTs covering 181 cities via 230 branches ₹10,478 Cr AUM Mix Driven by steady rise in AUM per branch # Branches 37 66 127 230 Branch Mix >36 months>12 & <36 months<12 months ₹ Cr 5 8 8 24 26 27 56 65 66 0 10 20 30 40 50 60 70 Q3 FY 25 Q2 FY 26 Q3 FY 26 Vintage =<12M 12M<Vintage<36M Vintage>=36M 1
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16 Technology Landscape Cloud Services Security Layer Data/DMS & Presentation Layer Monitoring & Logging API Integration Layer Web Layer Compliance & Regulatory Lead Generation • Digital Form • Feet on Street • Mobile App • Customer Reference Customer Onboarding • EKYC • PAN Verification • Legal Verification • Banking Check • Property Valuation • Bureau Check • Udyam Verification Credit Underwriting • AI enabled PD with customer • CAM Summary Assessment • Online Valuation report assessment • BRE based Customer segmentation Pre-Disbursal • E-Nach • E-Sign • BRE based system Deviations Loan Disbursal • Digital Disbursal IMPS/RTGS/NEFT • WhatsApp based welcome Kit delivery • Digital document storage Loan Servicing • Customer App • CRM Platform • Call Center • WhatsApp • Digital Collection • Collections App • Robotic Processes • BBPS enabled payments • Payment Aggregators
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17 Credit Underwriting Tailored to service underserved, underbanked informal customers Deep understanding of customer behavior & strong knowledge of local markets Most small businesses in India have challenges Partial Income Proof Limited Commercial Credit History Collateral with local nuances Bank Statements with Limited Transactions Small scale businesses lack resilience SBFC's business model, backed by experience in this segment • Credit officer spends time to understand income & cash flow (documented + non-documented) at family level • Evaluation of historical asset creation • SBFC customers are often first-time commercial borrowers with past consumer loans • Reference check from the neighbourhood, locality and their customer and suppliers • Local team with knowledge of local nuances and local collateral dynamics • Spouse or parent act as co-borrower on all loans • Analytics driven ‘customer segmentation’ • Triangulation of income sources from multiple data points • Focus on services/ trading/ retailing businesses • Customer with businesses in essential services - less impacted by macro down-cycles
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18 84.7% 86.9% 88.6% 6.6% 5.6% 4.8%1.2% 0.8% 0.7%7.5% 6.7% 5.9% Mar'24 Mar'25 Dec'25 > 700 > 650 & < 700 <650 0/ -1 94% AUM secured by self occupied residential / commercial property 42.5% LTV 100% co-borrower Spouse, parent acting as one 95% women Borrowers / co-borrowers No industry >15% Sector exposure not more than 15% of our loan portfolio > 700 > 650 & < 700 <650 0/-1 CIBIL Score Credit Underwriting Quality borrowers with credit score above 700 1Pertains to secured MSME Loans Granular loan book with high quality collateral1Over 88% AUM from customers with CIBIL >7001
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19 2.70% 2.77% 2.71% Q3 FY 25 Q2 FY 26 Q3 FY 26 Gross NPA %1 1.63% 1.51% 1.48% Q3 FY 25 Q2 FY 26 Q3 FY 26 Net NPA %2 40.22% 46.17% 46.21% Q3 FY 25 Q2 FY 26 Q3 FY 26 PCR%4 6.52% 8.72% 8.72% Q3 FY 25 Q2 FY 26 Q3 FY 26 1+ DPD %3 Credit Indicators Note: 1. Gross NPA% (Stage 3%) as per IND AS (including EIR adjustment). 2. Net NPA% is as per IND AS. 3. 1+ DPD % is for secured MSME at AUM level 4. PCR is defined as provisions made against Stage 3 loans
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20 ECL Provisions Summary As on December 31, 2025 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 8,665 318 250 9,233 ECL Provision 31 21 116 168 Net Loans Outstanding 8,634 297 134 9,065 ECL Provision % 0.36% 6.74% 46.21% 1.82% As on September 30, 2025 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 8,174 326 242 8,742 ECL Provision 30 16 112 158 Net Loans Outstanding 8,144 310 130 8,584 ECL Provision % 0.37% 4.87% 46.17% 1.81% As on December 31, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 6,701 199 191 7,091 ECL Provision 38 11 77 126 Net Loans Outstanding 6,663 188 114 6,965 ECL Provision % 0.56% 5.61% 40.22% 1.77% All figures in ₹ Cr
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21 Independent collection vertical dedicated to ensure collection efficiencies Tele Calling Field Collection Real-time mobile tracking Call centre - autodial Legal collection Collections Approach In-house, on-ground collections teams – 99% collected digitally Scalable StructureOn-ground Teams Adaptable collection strategy as per loan stage quick attention to customer issues +Branch staff from local area Branch area- limited radius In-house legal team Backed By Tech Analytics early warning E-Collect for focused efforts Loan Stage Normal • Call center autodial Initial stages of delinquency • Soft collections + SMS reminders • Initiate recovery in case of default NPA • Legal action if unable to recover
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22 8,148 9,938 10,478 Q3 FY 25 Q2 FY 26 Q3 FY 26 4.49% 4.56% 4.67% Q3 FY 25 Q2 FY 26 Q3 FY 26 2.70% 2.77% 2.71% Q3 FY 25 Q2 FY 26 Q3 FY 26 4.62% 4.40% 3.93% Q3 FY 25 Q2 FY 26 Q3 FY 26 8.50% 9.05% 9.04% Q3 FY 25 Q2 FY 26 Q3 FY 26 17.81% 18.01% 17.78% Q3 FY 25 Q2 FY 26 Q3 FY 26 Financial Performance Quarterly Trends in KPIs AUM Yield Spread Opex to AAUM Gross NPA RoAAUM (₹cr) 14.56%14.09%12.75% RoATE34.27%37.30%39.86%Cost/Income
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23 4.67% 4.29% 9M FY 25 9M FY 26 2.70% 2.71% 9M FY 25 9M FY 26 4.54% 4.58% 9M FY 25 9M FY 26 8.38% 8.93% 9M FY 25 9M FY 26 17.70% 17.92% 9M FY 25 9M FY 26 8,148 10,478 9M FY 25 9M FY 26 Financial Performance 9M - Trends in KPIs AUM Yield Spread Opex to AAUM Gross NPA RoAAUM (₹cr) 14.07%12.58% RoATE36.80%40.10%Cost/Income
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24 47.4% 19.3% 12.1% 1.8% 15.9% 3.5% Bank Rupee Loan ECB & FCNR NCD Securitisation Co-origination DFI's & FI's Sources of Borrowing Diversified Borrowing Mix – Q3 FY26 AA– (Stable) Lenders to the Company Public Sector Banks Private Sector Banks Financial Institutions (FIs) Foreign Banks Development Financial Institutions (DFIs) NCD
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25 9,060 6,747 4,412 3,353 2,354 7,191 5,895 2,748 1,783 1,091 Upto 5 Years Upto 3 Years Upto 1 Year Upto 6 months Upto 3 months Liablilities Asset ALM – December 2025 1,263 1,570 1,664 852 1,869 All figures in ₹ Cr Surplus
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26 SBFC – 9M FY26 Performance Note: All values in ₹ Cr unless stated otherwise, All metrics as of / for 9M FY26. Secured MSME Disbursal Value 2,323 Secured MSME AUM 8,497 AUM 10,478 Employees 4,803 Pan India presence 17 States & 2 UTs Sourcing 100% in-house # Branches 230 # live customers 1,90,688 Average Ticket Size: Secured MSME / LAG (Lakh)* 9.80* | 1.18* Secured MSME / LAG LTV 42.5% / 56.6% % Secured 100% Credit rating AA- (Stable) Tangible Net worth 3,306 PAT 328 Size and Growth Distribution Granular Book Asset Quality Liability Profile Profitability PCR 46.21% Cost of Borrowing 8.99% 17.92% Return on AAUM 4.58% Spread 8.93% Secured MSME Disbursal Volume 23,689 NNPA 1.48% GNPA 2.71% 1.23% Capital Adequacy CRAR 31.70% % YoY +29% YoY +25% YoY +22% YoY +17% % % YieldCredit Cost YoY +31% YoY +22 bps YoY +1 bp YoY -15 bps YoY +55 bps YoY +4 bps YoY -33 bps YoY +27 bps
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27 Summary Financial Statements – Profit & Loss Statement for Q3 FY26 Particulars Quarter Ended Growth (%) December 2025 September 2025 December 2024 Q-o-Q Y-o-Y Interest Income on Loans 393 375 301 4.7% 30.4% Interest Income other than on Loans 4 4 6 Fee & Other Income 29 32 26 Total Income 426 411 333 3.6% 27.8% Finance Cost 136 129 106 Operating Expenses 99 105 90 Pre-Provisioning Operating Profit 191 177 137 7.7% 39.5% Credit Cost 33 31 19 Tax Expense 40 37 30 Profit after Tax 118 109 88 8.1% 34.0% Basic EPS (Not Annualized) 1.08 1.00 0.82 Diluted EPS (Not Annualized) 1.06 0.99 0.80 All figures in ₹ Cr
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28 Particulars Nine Month Ended Growth (%) Annual December 2025 December 2024 Y-o-Y March 2025 Interest Income on Loans 1,118 845 32.3% 1,167 Interest Income other than on Loans 14 22 29 Fee & Other Income 93 78 110 Total Income 1,225 945 29.7% 1,306 Finance Cost 390 301 419 Operating Expenses 307 258 355 Pre-Provisioning Operating Profit 528 386 36.9% 532 Credit Cost 89 53 74 Tax Expense 111 82 113 Profit after Tax 328 251 30.8% 345 Basic EPS (Not Annualized) 3.01 2.33 3.20 Diluted EPS (Not Annualized) 2.97 2.29 3.15 Summary Financial Statements – Profit & Loss Statement for 9M FY26 All figures in ₹ Cr
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29 ROE Tree Ratios Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Interest Income on Loans/ Average Loan Book 17.78% 18.01% 17.81% 17.92% 17.70% Fee & Other Income/ Average AUM 1.13% 1.32% 1.31% 1.31% 1.41% Borrowing Cost/ Average Borrowings 8.74% 8.96% 9.31% 8.99% 9.32% Spread 9.04% 9.05% 8.50% 8.93% 8.38% Net Interest Margin/ Average AUM 10.33% 10.48% 10.27% 10.36% 10.23% Operating Expenses/ Average AUM 3.93% 4.40% 4.62% 4.29% 4.67% Credit Cost/ Average AUM 1.29% 1.29% 0.97% 1.23% 0.96% Profit after Tax/ Average AUM 4.67% 4.56% 4.49% 4.58% 4.54% Leverage (Avg AUM/ Avg Tangible Equity) 3.12 3.09 2.84 3.07 2.77 RoATE 14.56% 14.09% 12.75% 14.07% 12.58%
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30 Balance Sheet All figures in ₹ Cr Particulars As On December 2025 September 2025 Assets Cash and Bank Balances 414 493 Derivative Assets - 31 Receivables 29 31 Loan Assets 9,065 8,584 Investments 966 357 Other financial assets 4 4 Current & Deferred tax assets (Net) 26 8 Property, Plant and Equipment etc. 308 309 Other non-financial assets 5 6 Total Assets 10,817 9,823 Liabilities and Equity Derivative Liabilities 6 - Payables 19 17 Borrowings 7,020 6,176 Other financial liabilities 195 188 Non-Financial Liabilities 10 8 Equity & Reserves 3.567 3,434 Total Liabilities and Equity 10,817 9,823
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PRIVATE & CONFIDENTIAL 31 THANK YOU! For further information, please contact Mr. Sanket Agrawal (Chief Strategy Officer & IR) Email - sanket.agrawal@sbfc.com