SBFC FINANCE Q2 CONCALL: MAINTAINS 5–7% QUARTERLY AUM GROWTH GUIDANCE, TARGETS 25 BPS OPEX REDUCTION & EXPECTS CREDIT COST STABILIZATION

• MANAGEMENT MAINTAINS OVERALL AUM GROWTH GUIDANCE AT 5–7% QOQ, SUPPORTED BY MSME LENDING & CONTROLLED GOLD LOAN EXPANSION • TOTAL AUM UP 27% YOY & 6% QOQ TO ₹12,592 CR, WITH MSME AUM GROWING 18% YOY TO ₹9,669 CR • MANAGEMENT EXPECTS MSME DISBURSEMENTS TO GROW APPROXIMATELY 5–6% SEQUENTIALLY, WITH CONSISTENT IMPROVEMENT OVER COMING QUARTERS • H2 FY27 MSME DISBURSEMENTS EXPECTED TO RECORD DOUBLE-DIGIT GROWTH VS H2 FY26, SUPPORTED BY HIGHER-TICKET LOAN DEMAND • COMPANY HAS DISCONTINUED NEW MSME LOANS BELOW ₹7 LAKH, SHIFTING FOCUS TOWARD ₹10–25 LAKH & ₹25 LAKH+ BORROWERS • GOLD LOAN CONTRIBUTION EXPECTED TO REMAIN AROUND 20–25% OF TOTAL AUM, WITH MANAGEMENT PRIORITIZING PROFITABILITY OVER AGGRESSIVE GROWTH • MANAGEMENT TARGETS PORTFOLIO YIELD AROUND 17.5% VS CURRENT 18%, WHILE LENDING SPREAD GUIDANCE REMAINS AT 9–9.25% • COMPANY INCREASED PRIME LENDING RATE BY 25 BPS IN OCTOBER TO OFFSET POTENTIAL BORROWING COST INCREASES • MANAGEMENT EXPECTS TO PROTECT LENDING SPREADS DESPITE RISING FUNDING COSTS, SUPPORTED BY VARIABLE-RATE MSME LOANS • FY27 OPERATING EXPENSE REDUCTION TARGET MAINTAINED AT APPROXIMATELY 25 BPS, WITH FURTHER IMPROVEMENT EXPECTED DURING H2 • CREDIT COST EXPECTED TO STABILIZE AROUND CURRENT 1.37% OR DECLINE MARGINALLY, WITH MANAGEMENT INDICATING Q1 FY27 MAY HAVE BEEN THE PEAK • EARLY DELINQUENCY RATIO EXPECTED TO STABILIZE AROUND 8–9% VS CURRENT APPROXIMATELY 9.2%, SUPPORTED BY STRONGER COLLECTIONS • MANAGEMENT EXPECTS RETURN ON AVERAGE AUM TO REMAIN ABOVE 4.5% IN THE NEAR TERM, WITH ROE POTENTIALLY IMPROVING AS LEVERAGE INCREASES • COMPANY EXPECTS NO FRESH EQUITY CAPITAL REQUIREMENT UNTIL AUM REACHES APPROXIMATELY ₹20,000 CR, SUPPORTED BY 31% CAPITAL ADEQUACY • AI-LED AUTOMATION, DIGITAL ONBOARDING & COLLECTION EFFICIENCY EXPECTED TO SUPPORT OPERATING LEVERAGE; RISING BORROWING COSTS, GOLD LOAN COMPETITION & ELEVATED EARLY DELINQUENCIES REMAIN KEY RISKS

SBFC FINANCE LIMITED

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