Are SBI Cards latest results good or bad?

SBI Cards & Payment Services has reported its financial results for the quarter ending March 2025, showcasing a mixed operational performance. The company achieved net sales of Rs 4,673.95 crore, which represents the highest quarterly sales in the last five quarters, indicating a positive sales trend in the near term. However, the Profit After Tax (PAT) for the last six months was Rs 917.41 crore, reflecting a year-on-year decline of 24.27%, suggesting challenges in maintaining profitability.
In terms of quarterly performance, the net sales showed a growth of 1.20% compared to the previous quarter, which is a decrease from the 4.47% growth seen in December 2024. Conversely, the standalone net profit increased by 39.39% compared to the previous quarter, marking a notable turnaround from a negative growth rate in the prior period.

Additionally, SBI Cards recorded its highest non-operating income in the last five quarters at Rs 157.79 crore, although this raises questions regarding the long-term sustainability of such income sources. The operating profit margin, excluding other income, was reported at 28.98%, with a slight increase from the previous quarter.

Overall, while SBI Cards has demonstrated robust sales growth, it faces challenges in profitability and the sustainability of its non-operating income. The company saw an adjustment in its evaluation over the last three months, indicating a potential stabilization in its financial performance.