SBI Cards tanks over 6% after Q4 results: Here's what brokerages say

SBI Cards stock was quoting at ₹868.50, down 6.27 per cent from the previous session's closing price of ₹926.55

SBI Cards share price today: Shares of India's largest pure-play credit card player, SBI Cards and Payment Services, fell over 6 per cent to hit an intraday low of 867.30 on Friday after the company reported its March 2025 quarter (Q4 FY25) results. 

 

At 10:38 AM on Friday, the stock was quoting at ₹868.50, down 6.27 per cent from the previous session's closing price of ₹926.55. In comparison, the benchmark NSE Nifty50 index was trading at 23,962.45, down 284.25 points or 1.17 per cent.  Read Stock Market LIVE Updates Today Here

 

SBI Cards Q4 FY25 result update

The company, backed by India's largest lender State Bank of India, reported a 19 per cent decline in profit after tax to ₹534 crore in Q4 FY25 compared to ₹663 crore in the corresponding quarter last fiscal. However, the company's total income increased 8 per cent to ₹4,832 crore from ₹4,475 crore in the year-ago period. 

 

 

SBI Cards' net interest income increased by 13 per cent to ₹2,415 crore in the reported quarter compared to ₹2,139 crore in the March 2024 quarter. On the asset quality front, its gross non-performing assets (NPA) stood at 3.08 per cent of gross advances as of March 31, 2025, compared to 2.76 per cent as of March 31, 2024. Net NPA came in at 1.46 per cent as of March 31, 2025, as against 0.99 per cent as of March 31, 2024.  The Capital Adequacy Ratio stood at 22.9 per cent.   ALSO READ | SBI Life stock rises 10% in trade today; Here's what you need to know

 

SBI Cards stock history

The stock has fallen nearly 6.5 per cent from its 52-week high of ₹930.65 touched on April 24, 2025. The company’s total market capitalisation stood at ₹83,096 crore. On a year-to-date basis, the stock has gained around 39.5 per cent compared to a 2.5 per cent increase in the Nifty50 index. 

 

Brokerage Views on SBI Cards

Axis Securities

Concerns over asset quality and elevated credit costs had been the key reasons for the SBI Cards stock to underperform. With asset quality metrics improving, credit costs are expected to continue moving downwards and driving robust earnings growth for the company, Axis Securities said. 

 

"We believe SBI Card is ripe for a re-rating supported by expectations of NIM improvement, strengthening fee income

profile, steady Cost ratios ranging between 55 to 57 per cent on a steady state and declining credit costs driven by improving asset quality parameters, however growth picking-up would drive a meaningful re-rating," the brokerage firm said in research note.  ALSO READ | Tech Mahindra shares fall 5% after Q4 results; earnings breakdown here

 

Motilal Oswal Financial Services (MOFSL)

SBI Cards reported a broadly in-line quarter, though provisions were higher, with management expecting further easing in the upcoming quarters. The revolver mix is expected to see a downtrend and EMI yields remain under pressure, the brokerage firm said in a note. However, spending growth is expected to improve, driven by a recovery in corporate spending and steady traction in retail spending. 

 

"Asset quality is projected to improve, aided by a reduction in forward flows. Net interest margins (NIMs) are expected to improve in a calibrated manner as the benefit from the lower cost of funds will get partially offset by the yield pressure," MOFSL said. The brokerage firm reiterated its "Neutral" rating on the stock with a revised target price (TP) of ₹975.

 

About SBI Cards and Payment Services

Incorporated in 1998, SBI Cards and Payment Services is the largest pure-play credit card company in India, with over 20 million cards in force, as of December 2024. It offers a wide range of products and services to a diverse range of customer segments across the country. State Bank of India is the majority stakeholder in the company. In March 2020, the company was listed on the BSE and National Stock Exchange (NSE).