Financial Performance Highlights
SG Finserve Limited reported robust FY26 results with Profit After Tax increasing 58% YoY to ₹128 crore (₹127.66 crore in detailed statements) and Assets Under Management growing 75% to ₹3,936 crore. Operating income surged 96% to ₹334 crore while maintaining zero Gross NPAs throughout the year. The company achieved Return on Assets of 4.8% and Return on Equity of 12.0%, with cost-to-income ratio below 15%.
Business Operations & Strategy
The company successfully transitioned from a broad-based NBFC to a specialized MSME supply chain financier, focusing on dealer financing, vendor financing, and factoring business. It secured RBI factoring registration (N-14.03676) in January 2026 and serves approximately 50 marquee corporate anchors including Tata Group, Adani Group, and JSW Group. The fully digital lending platform processed cumulative disbursements exceeding ₹65,000 crores through 5.15 lakh invoices.
Capital Structure & Ratings
Net worth stood at ₹1,460 crores with conservative leverage of 1.9x (well below internal ceiling of 3x). The company raised ₹316 crores through warrant conversions in March 2026 and maintained strong capital adequacy with CRAR at 36.58%. ICRA maintained ratings of AA(CE)/Stable for long-term facilities and A1+ for commercial paper.
Leadership & Governance
Significant management changes included appointment of Mr. Vinay Gupta as CEO (November 2025), Mr. Sanjay Rajput as CFO (January 2026), and Mr. Deepak Kumar as Chairperson (April 2026). The board comprises 6 directors with 5 independent members, maintaining robust corporate governance framework across multiple committees.
Risk Management & Compliance
The company identified and managed risks including cybersecurity, market risk (100 bps rate increase would impact PBT by ₹26.54 crore), credit risk (20 largest borrowers represent 38.89% of advances), and liquidity risk. It received an RBI penalty of ₹28.30 lakh in October 2024 for non-compliance with certain CoR conditions but maintained full regulatory compliance otherwise.
Related Party Transactions & CSR
Significant transactions included ₹11.17 crore in advances to entities where KMPs have influence and ₹1.96 crore office rent paid to related parties. Unspent CSR of ₹1.60 crore will be transferred to a designated account for an integrated education and skill development project in Vrindavan with APL Apollo Foundation.
Future Outlook
FY27 guidance targets 35-40% AUM growth with long-term aspirations for 25-30% AUM CAGR and 30-35% PAT CAGR. Strategic initiatives include expansion into Tier 2 markets, scaling factoring business, and proposed subsidiaries in ARC, Alternative Investment Funds, and AI-led tech platforms.