SK Finance has delivered a robust performance for the fiscal year 2025-26 (FY26), with its Assets Under Management (AUM) crossing the Rs 15,755 crore mark. The non-banking financial company (NBFC) reported a significant jump in its profit after tax (PAT), which reached Rs 431 crore, reflecting strong operational efficiency and growth momentum.
Key Financial Highlights
The company's AUM grew by 18% year-on-year, driven by increased disbursements across its vehicle finance and small business loan segments. Net interest income (NII) also saw a healthy rise, supported by improved asset quality and higher yield on advances. The PAT growth of 22% over the previous fiscal was attributed to better cost management and lower credit costs.
Operational Performance
SK Finance maintained a strong focus on asset quality, with gross non-performing assets (GNPA) improving to 1.2% from 1.4% in FY25. The company expanded its branch network to 350+ locations, primarily in tier-2 and tier-3 cities, to deepen its reach. Disbursements during the year exceeded Rs 10,000 crore, marking a 15% increase from the prior year.
Management Commentary
Commenting on the results, the Managing Director of SK Finance said, "Our FY26 performance underscores the strength of our business model and our commitment to serving the financial needs of small businesses and individuals. The growth in AUM and profitability reflects our disciplined approach to risk management and customer-centric innovation."
The company also highlighted its digital transformation initiatives, which have improved customer onboarding and loan processing efficiency. SK Finance plans to continue investing in technology to enhance its service delivery and expand its product portfolio.
Outlook for FY27
Looking ahead, SK Finance aims to achieve AUM of Rs 20,000 crore by the end of FY27, driven by further branch expansion and product diversification. The company expects to maintain its asset quality metrics while targeting a return on assets (ROA) of over 2.5%. With a strong capital base and healthy liquidity position, SK Finance is well-positioned to capitalize on the growing demand for formal credit in semi-urban and rural markets.
