Jefferies has maintained its hold rating on SBI Cards while raising its target price to ₹1,010 per share after the company’s Q2FY26 results showed mixed trends. The firm reported a 10% year-on-year rise in PAT to ₹4.4 billion, which was 13% below Jefferies’ estimate, impacted by lower NIM, weaker fee income, and slightly higher opex.
The brokerage said most asset quality metrics improved sequentially, indicating that credit stress is beginning to ease. Jefferies expects credit costs to moderate further as delinquencies decline. It also anticipates NIM recovery as the revolver mix normalises, although growth in assets may remain modest and fee income pressures are likely to persist.
The brokerage has cut its FY26–27 EPS estimates by 7–14%, factoring in slower operating leverage and weaker yield growth. While it expects earnings and ROA to improve gradually, Jefferies believes valuations at 4.7x FY27 estimated book value largely reflect these positives.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
