Intimation on Transcript on Earning calls

30th October, 2026 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, 21st Floor, Dalal Street, Bandra (East), Mumbai – 400051. Mumbai – 400001. NSE Symbol: SBFC BSE Equity Scrip Code: 543959 Sub: Transcript of Earnings Conference Call Dear Sir/Madam, Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the Earnings Conference Call for the quarter and half year ended 30th September, 2026 which was held on Monday, 26th October, 2026. The transcript of the Earnings Conference Call is also being uploaded on the website of the Company at https://www.sbfc.com/investors under the section ‘Investor Presentation – Call Transcripts’. Kindly take the same on your records. Thanking you, Yours faithfully, For SBFC Finance Limited Namrata Sajnani Company Secretary &Chief Compliance Officer Encl: As above SBFC Finance Limited Registered Office: Unit No. 103, 1st Floor, C&B Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri (East) Mumbai - 400 059 T. : +91-22-67875300 • F : +91-22-67875334 • www.SBFC.com • Email: complianceofficer@sbfc.com CIN No : L67190MH2008PLC178270 “SBFC Finance Limited Q2 FY27 Earnings Conference Call” October 26, 2026 MANAGEMENT: MR. ASEEM DHRU – EXECUTIVE VICE CHAIRMAN MR. MAHESH DAYANI – MD & CEO MR. SANKET AGRAWAL – CHIEF FINANCIAL OFFICER MR. RAJIV THAKKER – CHIEF RISK OFFICER MODERATOR: MR. GAURAV TOSHNIWAL – ICICI SECURITIES LIMITED Page 1 of 15 SBFC Finance Limited October 26, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the SBFC Finance Limited Q2 FY '27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Gaurav Toshniwal from ICICI Securities. Thank you, and over to you, sir. Gaurav Toshniwal: Yes. Thank you, Steve. Hi. Good morning, everyone, and welcome to SBFC Finance Q2 FY '27 Earnings Call. On behalf of ICICI Securities, I would like to thank SBFC management team for giving us the opportunity to host this call. Today, we have with us the entire top management team of SBFC, represented by Mr. Aseem Dhru, Executive Vice Chairman; Mr. Mahesh Dayani, MD & CEO; Mr. Sanket Agrawal, Chief Financial Officer; and Mr. Rajiv Thakker, Chief Risk Officer. I will now hand over the call to Aseem for his opening remarks, and then we'll open the floor for Q&A. Over to you, sir. Aseem Dhru: Thank you, Gaurav. Good morning, everyone. The world as we always knew it is in a kind of a reset. Geopolitics, geoeconomics, deglobalization, anti-immigration, and breakdown of a rules- based order that we have been used to. In addition, it is readjusting to the changes AI is bringing into everything and every domain of life. Volatility and disruption are the new normals. In India, the impact of the 3F's – fuel, fertilizer and foreign exchange on top of a super El Nino is juxtaposed with a resilient domestic demand. There are 10 major schools of economic thought in the world; classical, neoclassical, Keynesian, Austrian, Marxism, etcetera. But what we are seeing defies all things we have been taught. The Fed trying to force the 10-year down, when it succeeds even temporarily, even gold and Bitcoin both go down, which could basically mean it's a risk-off. The U.S. 10-year crossing 5%, any economic theory would tell you, would lead to a stock market crash, but that is not what we are seeing. Honestly, it's getting increasingly difficult to make sense of the macroeconomic reality of the world we live in. As we speak, economic cycles, political cycles, commodity cycles, currency, interest rate cycles, liquidity cycles are in motion. And these usually lead to an eventual credit cycle. However, the causal relationships we have been taught in economic textbooks no longer work in a world where deficits and currency printing has gone out of control. Frankly, and thankfully, for a company as small as SBFC, these questions are above our pay grade. We have to manage to keep our little boat safe in this tempestuous ocean. If you listen to the last 3 years of quarterly calls, we have always been cautious and continue to remain so. Take for example, interest rates, 10-year Indian G-Sec at 7.47% is up almost 65 basis points in this cycle and so surely, more rate hikes are coming. These aren't controllable for us. How we manage our borrowing cost and reprice our variable rate portfolio of loans is in our hands, and we will focus on the controllable. We don't have to worry so much about the health of the economy at our size. We just need to worry about choosing our customers better, using technology better, becoming more efficient producers – enabling us to deliver the ROAs, squeezing the opex and credit costs. In a world of constant flux and chaos, we are trying our best to continue to deliver boring results. Page 2 of 15 SBFC Finance Limited October 26, 2026 With this, I hand over the call to Mahesh. Mahesh Dayani: Thank you, Aseem. Good morning to all. There is never a dull moment in financial services. We began the year with a war that fueled inflation, and we ended up with a 25 basis rate increase. We are now debating the possibility of further rate increases, dealing with a deficient rainfall, watching cross-leverage buildup in gold loans, and assessing a draft regulatory circular that may impact profitability. The last couple of years have felt like a Bollywood thriller. There are moments when your heart is in your mouth, the background music gets louder and you wonder what the next twist will be. But once the dust settles, you find yourself relishing the drama. We are building SBFC to deliver consistent quarterly performance despite the noise. This is our 36th consecutive quarter of execution since inception, and we have delivered sequential AUM and profit growth within our guided range of 5% to 7% per quarter. It may not make for an exciting headline, but in lending, consistency is a competitive advantage. What made this quarter special was the 15% ROE on a low leverage of 2.3 while recognizing costs upfront and not front-loading income. For years, this number sat in a cell in our Excel model. It is satisfying to see an aspiration translate into a reported performance. Let me now return to the 3 priorities we outlined last quarter – growth, margins & efficiency, and asset quality. On growth: we are witnessing an interesting shift in the lending landscape. With a more cautious approach to risk, private and public sector banks are increasingly moving towards higher ticket prime borrowers where the credit profile is significantly stronger and pricing is in single digits. Needless to add, there's very little blood on the report card. The micro MSMEs category, which is a sub INR 7 lakh category has seen some stains on the progress report, with delinquencies touching more than 4% for the industry. This creates a meaningful headroom in the INR 10 lakh to INR 25 lakh and a INR 25+ lakh segment, which is where we have repositioned our business through our own book and co-lending. A direct co-origination model is like a large ship – it does not turn overnight, but once it changes direction the momentum can be substantial. The change is to make the turn early enough and stay the course long enough to see the benefits. MSME disbursements grew 6% in the quarter to INR 855 crores. This is the third straight quarter of growth since we repositioned our lending mix in quarter 2 last year. You cannot reliably predict every turn in the cycle, but you can prepare your business to respond to it. This is precisely what we [Showing first 8,000 characters — download PDF for full document]