SG Finserve: Business Overview & Financial Analysis
SG Finserve Limited is a non-banking financial company (NBFC) headquartered in Delhi-NCR, India. Promoted by the SG Group (after the acquisition and rebranding of Moongipa Securities Limited in 2022), the company operates as a supply chain financing enterprise. SG Finserve Limited specializes in offering tailored credit solutions to the Indian B2B ecosystem, including dealer trade financing, vendor financing, factoring, and logistics financing. The entity leverages digital platform integrations to service anchor corporate clients, their distribution networks, and small-to-medium enterprise (SME) supply chains.
AUM & Loan Book Composition of SG Finserve (Q1 FY2027)
SG Finserve Limited structures its total Assets Under Management (AUM) across supply chain finance verticals, dealer funding, and vendor credit lines.
- Total Assets Under Management (AUM) – Rs 2,850.00 crore (+42.5% YoY vs Rs 2,000.00 crore in Q1 FY2026)
- Dealer Supply Chain Financing Share – 62.0% of Total AUM (Rs 1,767.00 crore)
- Vendor Financing & Factoring Share – 28.0% of Total AUM (Rs 798.00 crore)
- Logistics & Other Business Loans Share – 10.0% of Total AUM (Rs 285.00 crore)
Total AUM expanded 42.5% year-on-year to Rs 2,850.00 crore in Q1 FY2027, driven by dealer network onboarding across anchor corporates. Dealer supply chain financing represents over six-tenths of the total loan book, carrying short-tenure revolving credit terms.
Anchor Corporate Network & Partner Scale of SG Finserve (FY2026)
The company partners with large Indian corporate anchors to extend structured channel financing across their upstream vendors and downstream dealers.
- Active Corporate Anchors Base – 45+ enterprise anchor partners across steel, FMCG, auto, and industrial sectors
- Active Channel Partners & Dealers Base – 3,200+ onboarded dealers and suppliers
- Average Loan Ticket Size per Dealer – Rs 50.00 lakh to Rs 2.00 crore revolving facility
- Average Credit Facility Tenure – 30 to 90 days revolving working capital cycle
Partnering with 45+ corporate anchors enables SG Finserve Limited to access vetted dealer ecosystems with lower customer acquisition costs. Operating short-tenure 30-to-90-day revolving facilities supports rapid capital turnover and liquidity management.
Borrowing Mix & Funding Profile of SG Finserve (Q1 FY2027)
SG Finserve Limited finances its loan book disbursements through equity net worth, term loans from commercial banks, and capital market debt instruments.
- Bank Term Loans & Credit Lines Share – 58.0% of Total Borrowings
- Non-Convertible Debentures (NCDs) Share – 24.0% of Total Borrowings
- Commercial Paper & Short-Term Debt Share – 18.0% of Total Borrowings
- Average Weighted Cost of Borrowing Rate – 8.85% (vs 9.20% in Q1 FY2026)
Bank term loans and working capital lines constitute nearly six-tenths of total borrowing liabilities, providing funding stability. Reducing the average cost of borrowing to 8.85% expands net interest margins across supply chain lending.
Asset Quality & Yield Ratios of SG Finserve (Q1 FY2027)
The enterprise tracks net interest margins, portfolio yields, collection efficiency rates, and non-performing asset (NPA) metrics.
- Average Portfolio Yield Realisation – 13.80% per annum
- Net Interest Margin (NIM) Realisation – 5.85% (+25 bps YoY)
- Gross Non-Performing Assets (GNPA) Ratio – 0.65%
- Net Non-Performing Assets (NNPA) Ratio – 0.22%
- Provision Coverage Ratio (PCR) – 66.15%
- Collection Efficiency Rate – 99.2% overall monthly collection efficiency
Maintaining a Gross NPA ratio of 0.65% reflects credit risk controls and corporate anchor recourse mechanisms. Delivering an average portfolio yield of 13.80% alongside NIMs of 5.85% supports net spread conversion.
Latest Quarterly Financial Performance of SG Finserve (Q1 FY2027)
SG Finserve Limited recorded double-digit top-line revenue expansion and net profit growth during the first quarter of FY2027.
- Total Revenue from Operations – Rs 98.50 crore (+38.2% YoY vs Rs 71.27 crore in Q1 FY2026)
- Net Interest Income (NII) Realised – Rs 41.80 crore (+41.2% YoY vs Rs 29.60 crore in Q1 FY2026)
- Consolidated Operating Profit (PPOP) – Rs 34.20 crore (+44.0% YoY vs Rs 23.75 crore in Q1 FY2026)
- Consolidated Net Profit After Tax (PAT) – Rs 25.40 crore (+45.1% YoY vs Rs 17.50 crore in Q1 FY2026)
- Consolidated Net PAT Margin Realisation – 25.79% (+122 bps YoY)
First-quarter total revenue from operations expanded 38.2% year-on-year to Rs 98.50 crore, supported by AUM growth. Consolidated Net Profit After Tax reached Rs 25.40 crore, as net interest income surged 41.2% to Rs 41.80 crore.
Consolidated Annual Financial Performance of SG Finserve (FY2026)
The company achieved full-year top-line turnover growth and bottom-line earnings expansion during full financial year FY2026.
- Full Year Total Revenue from Operations – Rs 325.40 crore (+52.4% YoY vs Rs 213.50 crore in FY2025)
- Full Year Net Interest Income (NII) – Rs 138.20 crore (+55.8% YoY)
- Full Year Consolidated Net Profit After Tax (PAT) – Rs 84.50 crore (+58.2% YoY vs Rs 53.40 crore in FY2025)
- Return on Capital Employed (ROCE) Realisation – 12.80%
- Return on Equity (ROE) Realisation – 11.20%
Full-year total operating revenue crossed Rs 325.00 crore in FY2026, as consolidated Net Profit After Tax reached Rs 84.50 crore. Delivering a full-year ROE of 11.20% demonstrates capital deployment following its transition into supply chain financing.
Balance Sheet Structure & Capital Adequacy of SG Finserve (Q1 FY2027)
SG Finserve Limited maintains a capital structure supported by equity net worth and capital adequacy ratios well above regulatory minimums.
- Capital Adequacy Ratio (CRAR) – 42.50% (vs regulatory requirement of 15.00%)
- Tier-I Capital Ratio Share – 41.80%
- Total Shareholder Equity Net Worth Base – ~Rs 1,120.00 crore
- Debt-to-Equity Ratio Status – 1.55x (Conservative financial leverage profile)
- Credit Rating Profile – Reaffirmed '[CRISIL] A (Stable)' / 'CARE A (Stable)'
Operating with a Capital Adequacy Ratio of 42.50% provides balance sheet runway to expand loan disbursements without equity dilution. Reaffirming long-term credit ratings at '[CRISIL] A (Stable)' confirms credit health and bank borrowing access.
Technology Platform & Digital Integration Roadmap of SG Finserve (FY2027–FY2028)
The enterprise executes a digital technology strategy to automate loan underwriting, integrate corporate ERP systems, and scale digital invoice discounting.
- Automated ERP Integration Share – 75.0% of corporate anchor ecosystems connected via API portals
- Digital Onboarding Conversion Rate – 100% paperless digital onboarding for dealer channel partners
- Annual Technology Capex Outlay Guidance – Rs 15.00 to Rs 20.00 crore per annum for cloud infrastructure and AI underwriting models
- Target Loan Processing Turnaround Time (TAT) – Underwriting execution within 24 hours for pre-approved corporate dealers
Connecting 75.0% of anchor ecosystems via API portals enables automated invoice validation and direct disbursement. Reinvesting Rs 15–20 crore annually into tech infrastructure maintains processing turnaround times under 24 hours.
Strategic Outlook & Management Commentary of SG Finserve (Q1 FY2027 Concall)
Management guidance outlines strategic priorities centered on AUM expansion, corporate anchor additions, and asset quality maintenance.
- Management targets maintaining a 35.0% to 40.0% annual AUM CAGR over FY2027 and FY2028.
- Net interest margins are guided to sustain between the 5.5% and 6.0% target corridor.
- Active corporate anchor base is targeted to scale from 45 to 75+ enterprises over the next 18 to 24 months.
- Gross NPA ratios are guided conservatively to remain below 1.0% across economic cycles.
- Logistics financing and vendor factoring will be expanded to diversify the supply chain loan book.
- Capital allocation strategy will prioritize self-funded AUM growth while maintaining a debt-to-equity ratio below 3.00x.
Management anticipates strong demand for supply chain credit and corporate dealer financing to support full-year growth targets. Operational focus centers on onboarding new corporate anchors, expanding API tech integrations, and preserving balance sheet health.
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Sources & References
- SG Finserve Limited Q1 FY2027 Unaudited Financial Disclosures & Board Outcomes
- SG Finserve Limited Q1 FY2027 Investor Presentation & Operational Summary
- Stock Exchange Filings & Corporate Announcements for SG Finserve Limited
- BSE Limited & National Stock Exchange of India (NSE) Corporate Disclosures for SG Finserve Limited
- Ticker Finology SG Finserve Page
Disclaimer
Disclaimer: The information presented above on SG Finserve has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker SG Finserve page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.