Are SBI Cards latest results good or bad?

Jul 26 2025 07:13 PM IST
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SBI Cards' latest results show mixed performance: while net sales grew by 4.34%, Profit After Tax declined by 24.27% year-on-year, raising concerns about profitability despite strong operational efficiency. Overall, the company is facing a challenging financial environment.
SBI Cards & Payment Services has released its financial results for the quarter ending June 2025, showcasing a mixed operational landscape. The company reported net sales of Rs 4,673.95 crore, reflecting a growth of 4.34% compared to the previous quarter, indicating a consistent demand for its services over the last five quarters. This trend suggests that the company is maintaining a strong position in the market.

However, the Profit After Tax (PAT) for the latest six months was Rs 917.41 crore, which represents a year-on-year decline of 24.27%. This decline raises concerns regarding the company's profitability and may impact future performance. Additionally, while non-operating income reached a record high of Rs 157.79 crore, there are uncertainties about the sustainability of this income from non-business activities.

The company also experienced an adjustment in its evaluation, reflecting the complexities in its financial performance. The standalone net profit for the quarter ended June 2025 was Rs 534.18 crore, showing a growth of 4.08% from the previous quarter, although this is a notable reduction from prior growth rates. The operating profit margin, excluding other income, slightly improved to 28.98%, indicating some operational efficiency.

In summary, SBI Cards is navigating a challenging financial environment, with strong sales growth contrasted by declining profitability metrics.
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