SG Finserve LimitedQ1 FY27 Results & Financial Update
SG Finserve Limited: Q1 FY27 standalone results and company financials – revenue ₹136.13 Cr, PAT ₹53.68 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore SG Finserve Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
s, operating income more than doubled compared to the same period in the previous year, while PAT registered a substantial year-on-year expansion supported by robust loan book compounding.
The lender's total loan book crossed a new milestone to reach Rs. 4,552 crore as of June 30, 2026, marking a 16% sequential increase from Q4 FY26 and an 82% surge over Q1 FY26.
Net Interest Income (NII) for the quarter stood at Rs. 82.06 crore, reflecting solid expansion in interest-earning assets, with interest income reaching Rs. 128.86 crore against finance costs of Rs. 54.06 crore.
Asset quality remained pristine, with management reporting NIL non-performing assets (NPAs) and maintaining annualized Return on Assets (RoA) at 5.10% and Return on Equity (RoE) at 14.0% for the quarter.
Operational efficiency remained strong with operating expenses well contained, preserving a low cost-to-income profile below 15% as the company scaled its geographical footprint and product verticals.
Capital adequacy remained robust with a CRAR of 32% and total equity standing at Rs. 1,539 crore at the close of June 2026, providing comfortable balance-sheet headroom for future disbursements.
01 · Business model
What does SG Finserve do?
SG Finserve Limited operates as a specialized Non-Banking Financial Company (NBFC) embedded within the APL Apollo Group ecosystem, focusing heavily on structured supply chain financing and downstream commercial lending.
The company's core lending architecture caters to a diverse ecosystem of manufacturers, PSUs, government suppliers, distributors, dealers, and retailers, providing critical liquidity across multi-tier distribution channels.
SG Finserve offers a comprehensive suite of financial products including vendor finance, dealer and distributor financing, invoice financing, purchase order financing, deep tier financing, alongside specialized factoring and TReDs solutions.
Operating across 30 locations in India with a dedicated team, the NBFC leverages digital integration and deep corporate relationships to drive structured, risk-balanced credit expansion.
02 · Historical context
What shaped the business before this quarter
As part of the APL Apollo Group—whose flagship entity APL Apollo Tubes Limited is a prominent structured steel manufacturer—SG Finserve has historically leveraged group supply chain networks to build its lending footprint.
The company expanded from traditional lending into specialized supply chain solutions, eventually entering the select cohort of NBFCs offering commercial factoring and TReDs solutions.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Total income | ₹136.13 Cr |
| Interest income | ₹128.86 Cr |
| Other income | ₹0.00 Cr |
| Profit before tax | ₹71.60 Cr |
| Profit after tax | ₹53.68 Cr |
| EPS | ₹8.21 |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Gross loan book reached an all-time high of Rs. 4,552 crore, driven by robust quarterly gross disbursements exceeding Rs. 7,300 crore.
Interest income climbed to Rs. 128.86 crore for Q1 FY27, fueled by a larger average asset base and increased utilization across dealer and vendor finance portfolios.
Fee and other income contributed Rs. 7.30 crore to the top line during the quarter, reflecting growth in transactional supply chain services.
NIM, spread, funding cost and credit cost
Net Interest Income reached Rs. 82.06 crore, supported by effective yield management on disbursements against funding costs.
Operating expenses were maintained at Rs. 9.60 crore for the quarter, keeping the cost-to-income ratio below 15% and supporting operational leverage.
Impairment on financial assets remained exceptionally low at Rs. 0.90 crore, reflecting robust underwriting standards and a NIL NPA portfolio.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
The company actively serves a diverse buyer and supplier ecosystem, ranging from large B2B enterprises and PSUs to authorized distributors, dealers, and sub-dealers.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
Supply chain financing remained the primary growth engine, complemented by the commercialization and scaling of factoring and TReDs solutions.
Geography and market mix
Operations expanded to cover 30 locations across North, South, East, and West India, supported by an operational head count of 84 personnel.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
Management's stated strategy involves deepening relationships with existing clients, acquiring new corporate partners, expanding product offerings, and exploring adjacent financial services.
Strategic initiatives include scaling supply chain finance and deep-tier financing, strengthening factoring and TReDs offerings, and preparing to launch Loan Against Property (LAP) and digital lending programs.
08 · Reported developments
What changed operationally
Achieved all-time high quarterly PAT of Rs. 53.68 crore in Q1 FY27, representing a significant jump over the corresponding period last year.
Successfully maintained a completely clean asset book with NIL gross and net NPAs.
09 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
The company maintained a comfortable Debt to Tangible Net Worth (Debt/TNW) ratio of below 2.2x alongside a strong capital adequacy ratio (CRAR) of 32%.
The company maintains high credit visibility backed by ICRA credit ratings of AA (CE) and A1+.
10 · Management guidance & targets
What management is targeting from here
Management targets an AUM compound annual growth rate (CAGR) of 25% to 30%.
Management projects a PAT CAGR of 30% to 35%.
Target Return on Assets (RoA) of 4.5% to 5.0%, Return on Equity (RoE) of 14% to 16%, cost-to-income ratio of 13% to 17%, and maintaining NIL NPAs.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
Corporate Partnerships
The company maintains expansive financing relationships with prominent industrial and manufacturing partners across India, including marquee names in steel, automotive, consumer durables, and infrastructure.
12 · Previous-quarter changes
What changed since the previous quarter
Loan book expanded by 16% sequentially from Rs. 3,936 crore in Q4 FY26 to Rs. 4,552 crore in Q1 FY27.
13 · Key Q&A
The quarter, answered directly
What does SG Finserve do?
SG Finserve Limited operates as a specialized Non-Banking Financial Company (NBFC) embedded within the APL Apollo Group ecosystem, focusing heavily on structured supply chain financing and downstream commercial lending.
What is the clearest takeaway from Q1 FY27?
s, operating income more than doubled compared to the same period in the previous year, while PAT registered a substantial year-on-year expansion supported by robust loan book compounding.
What drove earnings or loan-book movement?
Gross loan book reached an all-time high of Rs. 4,552 crore, driven by robust quarterly gross disbursements exceeding Rs. 7,300 crore.
What mattered most for margins, funding or credit cost?
Net Interest Income reached Rs. 82.06 crore, supported by effective yield management on disbursements against funding costs.
What changed operationally beyond the headline numbers?
Management's stated strategy involves deepening relationships with existing clients, acquiring new corporate partners, expanding product offerings, and exploring adjacent financial services.
What is management guiding or targeting from here?
Management targets an AUM compound annual growth rate (CAGR) of 25% to 30%.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Disbursement Momentum: Monitor the sustained growth pace of gross disbursements against the target annual AUM compounding rate of 25% to 30%.
- 02
New Product Rollouts: Track the execution progress on upcoming specialized offerings such as Loan Against Property (LAP) and digital lending programs.
- 03
Asset Quality Stability: Observe ongoing credit performance to ensure the continuation of a zero-NPA asset book.
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