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31st July, 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 which was held on Saturday, 25th July, 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 Sanket Agrawal Chief Financial Officer 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 Q1 FY '27 Earnings Conference Call” July 25, 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. RENISH BHUVA – ICICI SECURITIES LIMITED Page 1 of 9 SBFC Finance Limited July 25, 2026 Moderator: Ladies and gentlemen, good day and welcome to the SBFC Finance Limited Q1 FY27 Earnings Conference Call hosted by ICICI Securities. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Renish from ICICI Securities. Thank you and over to you, sir. Renish: Yes, thank you Swapnali. Hi, good evening, everyone and welcome to SBFC Finance Q1 FY27 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 and 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, Renish, and good evening, everyone. So, as our standing in credit markets with lenders has improved over the years, we have been able to avail new loans at better interest rates as well as diversify our lenders. Aided by the transmission of repo rate cuts, our cost of funds has come down by about 90 basis points year on year. Cost of operations have been calibrated in a downward sloping curve and we continue our guidance of a 25-basis point reduction this year over the 150-basis point reduction we've delivered since listing. Cost of credit will remain range-bound. The US 10-year bonds may force Fed rates, on the other hand for a rate increase. Independently, India's currency market situation could also force RBI's hand sooner. Independent of repo, deposit rates have performed up and as banks' deposit growth continues to lag lending, interest rates in India will have an upward bias and we could arrive sooner if crude continues to push $100 and stays above it longer. One thing is abundantly clear; it is impossible to crystal gaze into what will happen. We are living in a strange world. If you look at the 30-year, the US bond market is sitting in a 2008 crisis level even as their stock market continues in a bull sprint. Geopolitical uncertainties and India's mother of all problem, oil -- one doesn't know directionally what to pencil in. So, the only clarity we have is that we have to prepare for what cannot be anticipated. In our anti-fragile approach build, we always remain cautiously optimistic. We have taken steps needed to ensure that we keep walking the guided path with metronomical consistency. Our premise at SBFC from the start has been that acceleration and deceleration both put load on the engine and create heat and fuel waste. What's important is steady momentum. For 30 quarters, we have delivered this through system shocks created by successive failure of financial companies, COVID waves one and two, interest rate rides up and down. When we did our strategy meeting charting out our growth from INR 10,000 crores to INR 20,000 crores, we concluded that the risks ahead never remain the same. The external challenges change, the internal challenges also change, but we will endeavor to keep a steady pace through all the cross- currents we face. Our approach continues to be learning from our mistakes using analytics and technology and onboarding better customers, managing risks better and keeping a superior Page 2 of 9 SBFC Finance Limited July 25, 2026 provisioning which is currently 2x regulatory minimum. As we have in the past and in the future, we also remain focused on spreads, NIMs, ROAs, and ROEs as we believe that consistent profitable growth is our North Star. With that, I hand over the call to Mahesh. Mahesh Dayani: Thank you, Aseem. We entered the first quarter of 2027 with multiple headwinds. Interest rates were volatile in March and with the global situation continuing to write its own script, we had to plan our borrowings with more prudence than usual. Measure twice, borrow once. Second, gold prices were on a declining trend and with new regulations effective April 1st, 2026, resetting eligibility norms, the loan amount landing in customers' hands came down accordingly. Less shine, less size, so to speak. Third, the regulator's circular mandating banks not to accept collateral security for MSME customers within the 20 lakh ticket size had a direct bearing on our co-origination which accounts for roughly 20% of our disbursals and book. Lastly, a few birds strayed on the badminton court, by which I mean competitors showing up with competitive pricing or generous loan amounts which simply made us adjust our footwork. Despite all this, the underlying business held its ground. AUM grew 6% for the quarter at 27%- odd for the full year at INR 11,922 crores. MSME disbursements rose 3% Q-o-Q to INR 809 crores. Following the revised guidelines, the co-origination mix reset to 10%. This has since stabilized and we expect a return to the usual run rate from this quarter onwards. On the household side, the incomes haven't materially changed over the year, but inflation has quietly eaten into the disposable income, denting repayment capacity. We've seen this show up in our login to disbursal conversion which moderated to 34% from 42%. This isn't just our anecdote; the RBI's FSR report June 2026 echoes the same pattern, noting that nearly 60% of lending is now flowing towards consumption rather than asset creation. The sub-10 lakh segment in particular is showing signs of leveraged stress and warrants close monitoring. We have the distribution and gunpowder to push the pedal right now, but we'd rather scale this the right way than rush it. We were deliberate about pricing through the quarter, which meant walking away from some business rather than chasing it at any cost. Capital allocation discipline helped us protect spreads, which improved by 39 bps at 9.4% driven by both a lower cost of borrowing and better pricing on the asset side. NIMs moved up by a similar basis point as spreads and stood at 10.6% even as absolute borrowings increased, proof that growing the balance sheet and protecting the margin aren't mutually exclusive, just occasionally in tension. Opex came in at 4.29% [Showing first 8,000 characters — download PDF for full document]