SK Finance Limited – FY26 Results and P/B Valuation
· 5 min read · Written by the BuyUnlistedShares desk. Information only, not investment advice.
In FY26, SK Finance Limited's AUM crossed ₹15,755 crore, net PAT was ₹431 crore, and disbursements topped ₹9,162 crore. For investors in the unlisted share market, this report breaks down every key financial metric, analyses asset quality vs. NBFC peers, and sets out P/B figures ahead of the SEBI-approved IPO.
FY26 Result Analysis & P/B Valuation Deep-Dive
By Team BuyUnlistedShares
1: What SK Finance Does
1: What SK Finance Does
Established in 1994, SK Finance Limited is a non-deposit-taking, middle-layer Non-Banking Financial Company (NBFC-ML) regulated by the Reserve Bank of India and has its headquarters in Jaipur, Rajasthan.
Business Model
As of FY26, SK Finance operates out of a network of over 650+ branches in 11 states and one union territory, hiring more than 12,000 employees.
2: FY26 Financial Results
Analysis
Results of SK Finance for FY26 were declared on May 4, 2026. These results are a part of the consistent growth trend that the company has been experiencing since FY22. Following is an analysis of all key performance metrics for SK Finance:
Growth of AUM: Breaching the ₹15,000 Crore Mark
Assets under management of SK Finance amounted to ₹15,755.22 crore as of March 31, 2026, up from approximately ₹13,261 crore at FY25 end – resulting in growth of around 19% y-o-y. In Q1 FY26 update, AUM was reported at ₹13,668 crore (which translated into a growth of 23% y-o-y then).
What makes AUM growth all the more important is the fact that this growth happened despite the increase in number of hotels under eligibility criteria, and without any deterioration in asset quality. This has been an area of difficulty for most NBFCs.
Disbursements: Active Lending Activity
FY26 saw total disbursements of ₹9,162.27 crore by SK Finance. In Q1 FY26 itself, disbursements came in at ₹2,147 crore. Disbursement growth drives future AUM and revenue growth.
Income
The consolidated operational income for FY26 amounted to ₹2,823.60 crore. The total income from Q1 FY26 amounts to ₹652 crore (an increase of 21% YoY from ₹540 crore). Revenue comes from interest income from secured loans.
Profit: PAT Surpasses ₹431 Crore
The Net Profit After Tax (PAT) of FY26 amounts to ₹431 crore. In terms of context: Q1 FY26 PAT was ₹87.59 crore (an increase of 30% YoY), and FY25 PAT was around ₹229 crore. On these figures, PAT growth during FY26 was around 88% YoY.
Balance Sheet
SK Finance's balance sheet as of March 31, 2026 shows:
• Net Worth: ₹3,962.83 crore
• Debt-Equity Ratio: 3.23x; below the regulatory ceiling
• Capital Adequacy: The company maintains adequate capital buffers to support continued disbursement growth
3: Asset Quality
In the case of any NBFC, the most critical parameter which distinguishes a good NBFC from merely an expanding NBFC is the quality of assets. In the case of an unlisted stock holder in SK Finance, it is essential to understand what GNPA and NNPA are and how these parameters perform in comparison to their competitors.
What is GNPA and NNPA?
GNPA stands for Gross Non-Performing Assets. This ratio determines the ratio of total advances where there is a default made by the borrower, excluding any provision which has been made.
NNPA stands for Net Non-Performing Assets. It determines the ratio of bad loans after deductions of provisions made against it.
Asset Quality of SK Finance – FY26 Analysis
According to H1 FY26 financials, which were the latest data available on SK Finance’s asset quality (Gross Non-Performing Assets and Net Non-Performing Assets), the GNPA was approximately 4.77%, and NNPA was 3.27%. The GNPA figures are relatively higher compared to other NBFCs, considering SK Finance's concentration on providing finance for used commercial vehicles and MSMEs, which have inherently higher risk profiles than residential housing or corporates.
The GNPA figure has been broadly flat on a YoY basis, while AUM grew 19%-23%.
4: P/B Valuation — What Are You Actually Paying Per Share?
In the case of financial institutions – banks and NBFCs – P/B ratio is the most commonly used tool for valuation. P/B ratio is less volatile than P/E ratio as book value increases steadily year by year as earnings are added to equity, and it gives direct information about the balance sheet.
Calculation of P/B Ratio
Price/Book ratio = Market Price Per Share ÷ Book Value Per Share
Book Value Per Share = Net worth ÷ Total number of shares
For SK Finance: Net worth as of 31 March, 2026 = ₹3,962.83 crore. Paid-up Equity Capital is ₹13.37 crore (face value ₹1 per share). This implies that there are approximately 13.37 crore shares.
Book Value Per Share (BVPS) Formula
BVPS = Net Worth / Shares Outstanding
= ₹3,962.83 Cr / 13.37 Cr shares
= ₹296 per share (approx.) (book value)
This forms the basic benchmark for any P/B valuation. Any price paid by an unlisted investor for the SK Finance stock must always be in comparison to this book value.
| Item | Value | As of |
|---|---|---|
| Indicative price | ₹745 | 17 Oct 2026 |
| Lot size | 34 shares | 17 Oct 2026 |
| Minimum investment | ₹25,330 | 17 Oct 2026 |
| Market cap | ₹11,859 Cr | 17 Oct 2026 |
| Face value | ₹1 | 17 Oct 2026 |
| Book value | ₹297.19 | 17 Oct 2026 |
| P/E | 27.52 | 17 Oct 2026 |
| ISIN | INE124N01039 | 17 Oct 2026 |
| Sector | Financials | 17 Oct 2026 |
| Listing status | UNLISTED | 17 Oct 2026 |
P/B Scenario Analysis — Unlisted vs. Listed Comparable
The table below maps out what different P/B multiples imply for the unlisted share price — and how those compare against where peers trade in the listed market.
5: IPO Status
SEBI Approval — The Pathway Is Clear
The SEBI approval for SK Finance's IPO was granted on August 30, 2025. The validity period of SEBI approval is one year, implying that the time frame within which the IPO must be launched will expire by August 2026. The firm has appointed Kotak Mahindra Capital Company as the Book Running Lead Manager and Kfin Technologies as the Registrar. Listing will take place on BSE and NSE.
IPO Structure
The ₹2,200 crore IPO structure can be summarized as under:
• Fresh Issue: ₹500 crore - for expanding its capital base for future lending purposes
• Offer for Sale (OFS): ₹1,700 crore – for exiting investors
• OFS Investors: Norwest Venture Partners (₹700 Cr), TPG Growth IV (₹700 Cr), Evolvence funds (₹100 Cr), Promoters' Family (₹200 Cr)
A large OFS component means most IPO proceeds go to selling shareholders rather than the company. The fresh issue component is ₹500 crore.
Disclaimer:
This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.
