SBI Cards and Payment Services reported a 75% jump in second-quarter net profit as lower impairment costs lifted earnings, while NDTV Profit reported two brokerages cut price targets amid margin concerns.
The company reported net profit of INR 7.78 billion (INR 777.6 crore) for the quarter ended Sept. 30, 2026. Revenue from operations rose 4% to INR 51.41 billion, while impairment and bad-debt expenses fell 37% to INR 8.19 billion from INR 12.93 billion a year earlier. The results follow EconoTimes’ earlier report on the profit increase and lower credit-related charges.
Receivables were down 2% year over year at INR 583.76 billion. Total card spending increased 3% to INR 1.10689 trillion, and retail spending rose 6% to INR 952.99 billion.
NDTV Profit reported Oct. 26 that JPMorgan lowered its target price for SBI Cards to INR 505 a share from INR 588 and kept its Underweight rating. The outlet attributed the move to muted loan growth, potential pressure on net interest margins and credit costs that may be near a floor. It also reported that Nuvama Institutional Equities retained its Hold rating but cut its target to INR 625 from INR 660. Nuvama raised its FY27 earnings estimates after a first-half beat but cited margin and asset-quality headwinds and lower return on equity, according to NDTV Profit. Kotak Securities kept its Buy rating and INR 900 target, citing lower credit costs and potential improvement in returns, the outlet said.
SBI Cards reported a gross credit cost of 5.6%, down 98 basis points from the previous quarter. Its daily weighted average cost of funds was 6.8%, up 18 basis points, while net interest margin was 10.8%. Managing Director and Chief Executive Officer Salila Pande said, “With cost of funds expected to increase over the next few quarters, we expect NIM to be range-bound.” She said the company plans to optimize its borrowing mix and expand its EMI-based portfolio to help stabilize margins.
Management expects card spending and receivables to increase in Q3 FY27 as the festive period begins. It projected FY27 gross credit costs near 6% and said geopolitical developments could affect asset quality. The company attributed some improvement in asset quality to actions taken over the prior two to three years and described nonperforming assets as the lowest since the COVID-19 period.
