SBFC Finance has reported strong performance in the September quarter, driven by significant growth in the MSME credit sector and improved asset under management (AUM).

The company achieved a record increase in net profit for the first half of FY25, reflecting consistent AUM growth despite challenging market conditions. The firm's loan growth remains robust, with stable pre-delinquency rates and enhanced digital collections contributing to a sharp rise in return ratios. The floating loan book has also helped maintain spreads, positioning SBFC favorably in the current financial landscape.

While valuations may be high, the outlook remains positive due to strategic investments in technology and deeper market penetration. The company is well-positioned to benefit from medium-term triggers, including protectionist measures impacting the tyre industry and the ongoing "China plus" strategy. With a current market capitalization of ₹9,092 crore and an Overweight rating, SBFC Finance continues to attract investor interest.