Slides
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Investor Presentation Q2 FY 2027
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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 – Sep 2026 1 Profitability Profit after tax grew 27% YoY to ₹139 crore for the quarter. 2 Growth AUM grew 27% YoY and 6% QoQ to ₹12,592 crore. 3 Credit Quality Gross NPA at 2.6% with PCR of 42%. 4 Operating Efficiency Cost-to-AUM ratio improved by 33 bps YoY to 4.1%. 5 Return Ratios RoA of 4.6% and RoE of 15.0% for the quarter.
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4 Executive Summary – Q2 FY27 Gross NPA PAT Disbursement1 Yield RoAAUM Branches Opex to AAUM RoATE Asset Under Management 12,592 +27% +6% 2.6% -13 bps -2 bps 139 +27% +7% 855 5% 6% 18.0% 4.6% +2 bps +5 bps 257 +37 +1 4.1% -33 bps -22 bps 15.0% +95 bps +31 bps YoY QoQ 1Secured MSME All figures are in ₹ Cr Spread 9.6% +58 bps +15 bps+3 bps +14 bps
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5 Opportunity: Market size (₹5 lakh - ₹30 lakh MSME financing) of ₹4.61 lakh crore, growing at 23%2 5 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 18 states & 2 UTs Credit Underwriting: Understanding of segment with a tested credit underwriting and risk management framework 257 branches 202 Cities 18 States 2 UTs 1 As of Mar-26 (Source – CRIF Data); 2 CAGR period over FY18 to FY26 (Source – CRIF Data)
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6 Focus Segment CAGR2 (%)Market Size1 (₹ tn) 19.8%11.9 23.2%4.6 23.5%0.7 Segment >₹0.3 cr ₹0.05– 0.3 cr <₹0.05 cr Total 18.7%17.2 SBFC Focus Segment – Customers Borrowing ₹5 Lakh to ₹30 Lakh Large segment within MSME of ₹4.6 lakh cr and growing at CAGR 23% Source: CRIF Data; 1 As of Mar-26; 2 CAGR period over FY18 to FY26
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7 778 1,156 1,648 2,221 3,192 4,943 6,822 8,747 11,270 12,592 2018 2019 2020 2021 2022 2023 2024 2025 2026 H1 2027 Our Journey Investment by Clermont and Arpwood group AUM of INR 1,000 cr 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 65 150 237 345 451 AUM crossed INR 10,000 cr in Q3 FY26 269 ROE crossed 15% for the quarter & PAT crossed 250 cr for the Half year.
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Akruti Mashkaria Head – Internal Audit Agnivesh Kumar Head – Operations Management Experienced, cycle-tested, professional management Mahesh Dayani MD & CEO Sanket Agrawal Chief Financial Officer Ganesh Vaidya Chief Technology Officer Rajiv Thakker Chief Risk Officer Namrata Sajnani Chief Compliance Officer & CS Sumeet Ghai Chief Human Resource Officer Aseem Dhru Executive Vice Chairman
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9 Koni Uttam Nayak Ex Senior Vice President, Visa Direct Organization at Visa Aseem Dhru Executive Vice Chairman 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 MD & CEO Leroy James Langeveld Country Head - UAE Clermont Group
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10 52.23% 7.66% 5.08% 22.24% 12.80% Shareholding Pattern Promoters Foreign Portfolio Investors Foreign Companies Mutual Funds, AIF, Insurance, Banks Individuals, Bodies Corporate Shareholding # Non-diluted Status as on September 30, 2026 Category of Shareholders % Share# Promoter Clermont Group 52.23% Other Major Shareholders SBI Mutual Fund 8.05% Aditya Birla Sun Life 4.72% Amansa Capital 3.91% Franklin India 2.81% Management & Employees hold 5.7% of diluted share capital
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11 CAGR: 29% Business Momentum Delivering Consistent AUM Growth YoY : 27% All figures in ₹ Cr. AUM QoQ : 6% 9,938 11,922 12,592 83% 78% 77% 17% 22% 23% Q2 FY 26 Q1 FY 27 Q2 FY 27 Secured MSME LAG 6,822 8,747 11,270 84% 83% 79% 15% 17% 21% 1% Mar-24 Mar-25 Mar-26 Secured MSME LAG Others
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12 815 809 855 Q2 FY 26 Q1 FY 27 Q2 FY 27 AUM Secured MSME All figures in ₹ Cr Business Momentum – Secured MSME AUM Disbursement Value Disbursement Volume YoY: 18% QoQ: 4% 10.7810.5110.02 ATS in ₹ Lakhs YoY: 5% 8,130 7,700 7,939 Q2 FY 26 Q1 FY 27 Q2 FY 27 QoQ: 6% YoY: -2% QoQ: 3% 8,196 9,271 9,669 Q2 FY 26 Q1 FY 27 Q2 FY 27
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13 1,593 1,719 1,746 Q2 FY 26 Q1 FY 27 Q2 FY 27 123 78 112 Q2 FY 26 Q1 FY 27 Q2 FY 27 Business Momentum Co-origination – Validates our profitable origination Co-origination Disbursement (₹ Cr) Co-origination AUM (₹ Cr) 15%%1 10% 13% 19% 19% 18% 1Percentage is on Total Secured MSME Loans
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14 33.92% 14.80% 34.91% 16.37% South East North West 79 4178 59 South East North West 6 6 21 8 32 12 26 5 18 11 12 16 40 4 27 1 3 16 1 1 Business Momentum No concentration risk & well distributed growth Present in 18 states, 2 UTs covering 202 cities via 257 branches ₹12,592 Cr AUM Mix Driven by steady rise in AUM per branch # Branches 40 56 161 257 Branch Mix >36 months>12 & <36 months<12 months ₹ Cr 8 8 10 26 24 23 65 67 68 0 10 20 30 40 50 60 70 80 Q2 FY 26 Q1 FY 27 Q2 FY 27 Vintage <=12M 12M<Vintage<36M Vintage>=36M 1 2
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15 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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16 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 • Customers with businesses in essential services - less impacted by macro down-cycles
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17 86.9% 89.2% 90.3% 5.6% 4.7% 4.3%0.8% 0.6% 0.6%6.7% 5.5% 4.8% Mar'25 Mar'26 Sep'26 > 700 > 650 & < 700 <650 0/ -1 93% AUM secured by self occupied residential / commercial property 43.0% LTV 100% co-borrower Spouse, parent acting as one 97% 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 90% AUM from customers with CIBIL >7001
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18 2.8% 2.7% 2.6% Q2 FY 26 Q1 FY 27 Q2 FY 27 Gross NPA %1 1.5% 1.6% 1.5% Q2 FY 26 Q1 FY 27 Q2 FY 27 Net NPA %2 46.2% 42.2% 42.2% Q2 FY 26 Q1 FY 27 Q2 FY 27 PCR%4 8.7% 9.2% 9.2% Q2 FY 26 Q1 FY 27 Q2 FY 27 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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19 ECL Provisions Summary As on September 30, 2026 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 10,695 390 300 11,385 ECL Provision 31 66 127 224 Net Loans Outstanding 10,664 324 173 11,161 ECL Provision % 0.3% 16.9% 42.2% 2.0% As on June 30, 2026 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 10,054 345 284 10,683 ECL Provision 28 56 120 204 Net Loans Outstanding 10,026 289 164 10,479 ECL Provision % 0.3% 16.3% 42.2% 1.9% 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 % 0.4% 4.9% 46.2% 1.8% All figures in ₹ Cr
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20 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 centre 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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21 9,938 11,922 12,592 Q2 FY 26 Q1 FY 27 Q2 FY 27 4.6% 4.5% 4.6% Q2 FY 26 Q1 FY 27 Q2 FY 27 2.8% 2.7% 2.6% Q2 FY 26 Q1 FY 27 Q2 FY 27 4.4% 4.3% 4.1% Q2 FY 26 Q1 FY 27 Q2 FY 27 9.1% 9.5% 9.6% Q2 FY 26 Q1 FY 27 Q2 FY 27 18.0% 17.9% 18.0% Q2 FY 26 Q1 FY 27 Q2 FY 27 Financial Performance Quarterly Trends in KPIs AUM Yield Spread Opex to AAUM Gross NPA RoAAUM (₹cr) 15.0%14.7%14.1% RoATE35.2%36.4%37.3%Cost/Income
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22 Financial Performance Half-yearly Trends in KPIs AUM Yield Spread Opex to AAUM Gross NPA RoAAUM (₹cr) 14.9%14.5%13.8% RoATE35.8%34.4%38.2%Cost/Income 9,938 11,270 12,592 H1 FY 26 H2 FY 26 H1 FY 27 18.0% 17.7% 18.0% H1 FY 26 H2 FY 26 H1 FY 27 8.9% 9.1% 9.6% H1 FY 26 H2 FY 26 H1 FY 27 4.5% 3.9% 4.2% H1 FY 26 H2 FY 26 H1 FY 27 2.8% 2.6% 2.6% H1 FY 26 H2 FY 26 H1 FY 27 4.5% 4.6% 4.6% H1 FY 26 H2 FY 26 H1 FY 27
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23 59.3% 13.1% 8.4% 3.0% 13.1% 3.1% Bank Rupee Loan ECB & FCNR NCD Securitisation Co-origination DFI's & FI's Sources of Borrowing Diversified Borrowing Mix – Q2 FY27 AA– (Positive) 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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24 11,698 9,023 6,483 4,852 3,209 9,473 7,938 3,485 1,496 921 Upto 5 Years Upto 3 Years Upto 1 Year Upto 6 months Upto 3 months Liabilities Asset ALM – September 2026 2,288 3,356 2,998 1,085 2,225 All figures in ₹ Cr Surplus
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25 SBFC – H1 FY27 Performance Note: All values in ₹ Cr unless stated otherwise, All metrics as of / for H1 FY27. Secured MSME Disbursal Value 1,664 Secured MSME AUM 9,669 AUM 12,592 Employees 5,618 Pan India presence 18 States & 2 UTs Sourcing 100% in-house # Branches 257 # live customers 2,33,710 Average Ticket Size: Secured MSME / LAG (Lakh)* 10.6* | 1.4* Secured MSME / LAG LTV 43.0% / 67.3% % Secured 100% Credit rating AA- (Positive) Tangible Net worth 3,789 PAT 269 Size and Growth Distribution Granular Book Asset Quality Liability Profile Profitability PCR 42.2% Cost of Borrowing 8.4% 18.0% Return on AAUM 4.6% Spread 9.6% Secured MSME Disbursal Volume 15,639 NNPA 1.5% GNPA 2.6% 1.4% Capital Adequacy CRAR 31.3% % YoY +27% YoY +18% YoY +2% YoY -7% % % YieldCredit Cost YoY +28% YoY -2 bps YoY -13 bps YoY +3 bps YoY +70 bps YoY +2 bps YoY -72 bps YoY +21 bps
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26 Summary Financial Statements – Profit & Loss Statement for Q2 FY27 Particulars Quarter Ended Growth (%) September 2026 June 2026 September 2025 Q-o-Q Y-o-Y Interest Income on Loans 485 454 375 6.9% 29.3% Interest Income other than on Loans 28 6 4 Fee & Other Income 34 32 32 Total Income 547 492 411 11.2% 33.0% Finance Cost 196 153 129 Operating Expenses 124 123 105 Pre-Provisioning Operating Profit 227 216 177 5.3% 28.5% Credit Cost 41 42 31 Tax Expense 47 44 37 Profit after Tax 139 130 109 6.7% 27.2% Basic EPS (Not Annualized) 1.25 1.18 1.00 Diluted EPS (Not Annualized) 1.25 1.17 0.99 All figures in ₹ Cr
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27 Summary Financial Statements – Profit & Loss Statement for H1 FY27 Particulars Half Year Ended Growth (%) Annual September 2026 September 2025 Y-o-Y March 2026 Interest Income on Loans 938 725 29.5% 1,532 Interest Income other than on Loans 34 9 22 Fee & Other Income 66 66 125 Total Income 1,038 800 29.9% 1,679 Finance Cost 348 254 537 Operating Expenses 247 208 413 Pre-Provisioning Operating Profit 443 338 31.3% 729 Credit Cost 83 56 125 Tax Expense 91 72 153 Profit after Tax 269 210 28.1% 451 Basic EPS (Not Annualized) 2.43 1.93 4.13 Diluted EPS (Not Annualized) 2.42 1.90 4.10 All figures in ₹ Cr
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28 ROE Tree Ratios Q2 FY27 Q1 FY27 Q2 FY26 H1 FY27 H1 FY26 Interest Income on Loans/ Average Loan Book 18.0% 17.9% 18.0% 18.0% 18.0% Fee & Other Income/ Average AUM 1.1% 1.1% 1.3% 1.1% 1.4% Borrowing Cost/ Average Borrowings 8.4% 8.4% 9.0% 8.4% 9.1% Spread 9.6% 9.5% 9.1% 9.6% 8.9% Net Interest Margin/ Average AUM 10.5% 10.7% 10.5% 10.6% 10.4% Operating Expenses/ Average AUM 4.1% 4.3% 4.4% 4.2% 4.5% Credit Cost/ Average AUM 1.4% 1.5% 1.3% 1.4% 1.2% Profit after Tax/ Average AUM 4.6% 4.5% 4.6% 4.6% 4.5% Leverage (Avg AUM/ Avg Tangible Equity) 3.3 3.3 3.1 3.3 3.1 RoATE 15.0% 14.7% 14.1% 14.9% 13.8%
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29 Balance Sheet All figures in ₹ Cr Particulars As On September 2026 June 2026 Assets Cash and Bank Balances 1,455 1,664 Derivative Assets 84 49 Receivables 24 34 Loan Assets 11,161 10,479 Investments 598 431 Other financial assets 5 5 Current & Deferred tax assets (Net) 26 22 Property, Plant and Equipment etc. 321 318 Other non-financial assets 10 9 Total Assets 13,684 13,011 Liabilities and Equity Payables 19 14 Borrowings 9,338 8,858 Other financial liabilities 265 238 Non-Financial Liabilities 13 27 Equity & Reserves 4,049 3,874 Total Liabilities and Equity 13,684 13,011
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PRIVATE & CONFIDENTIAL 30 THANK YOU!