Asset Quality Improvement
Expected: OngoingHIGH confidence
What: NPAs: NIL
“Operationally, we remain a highly disciplined NBFC, with Cost-to-Income of below 15%, and NIL NPAs.”
SG Finserve Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +62.1%Weak7w StreakRe-Entry
In , SG Finserve Ltd (Finance & Investments - MSME Lending) is outperforming Nifty 500 with +62.1% relative strength. Fundamentals: Weak. On a 7-week streak.
SG Finserve Ltd Key Facts
- PE Ratio
- 30.9x
- Market Cap
- ₹3,945 Cr
- PAT Growth YoY
- +75%
- Revenue Growth YoY
- +94%
- RS vs Nifty 500
- +62.1%
PB: Mid ContractionStrong Opportunity
What's Happening
💎PB falling while earnings hold — value emerging
🏛️DII accumulation — stake up 2.2%
💰Trading 57% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Asset Quality Improvement
OngoingHIGH
2. Management Or Ownership Change
Q3/Q4 FY26MEDIUM
3. Regulatory Approval Or License Win
March 2026MEDIUM
Key Risks
1. Past license issues caused a 6-8 month business halt and forced a run-down of th
MEDIUM2. Exposure to the steel sector through the APL Apollo group ecosystem
LOWSector-Specific Signals
Total Loan Book₹3,936 Cr+75%
Net NPAsNIL0%
Net Worth₹1,460 Cr+40%+
Return on Assets (RoA)4.8%
Key Numbers
PAT Growth YoY
+75%
Stable
Revenue YoY
+94%
Stable
Price to Book
2.7
Current Price
₹599
Fundamental Score
37/100
Weak
3Y PAT CAGR
+80%
Market Cap
3.9K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are SG Finserve Ltd's Earnings Accelerating?
Based on Q4 FY26 earnings • Updated Apr 18, 2026
Management Or Ownership Change
Expected: Q3/Q4 FY26MEDIUM confidence
What: Leadership Team: New CEO/CFO joined
“Vinay and team joined in and we, as a promoter group, don't want to pressurize the new team.”
Regulatory Approval Or License Win
Expected: March 2026MEDIUM confidence
What: Factoring License: Granted by RBI
“Recently, RBI has granted us license to commence factoring business, which will further strengthens our supply chain financing offering.”
Interest Cost Reduction Deleveraging
Expected: FY26LOW confidence
What: Credit Rating: AA (CE) / A1+
“Rated AA (CE) / A1+ by ICRA... We are currently dealing with 18 banks and two mutual funds for our borrowing.”
Loan Book growth of 75% YoY to ₹3,936 Cr.
HIGH confidence
What: Loan Book growth of 75% YoY to ₹3,936 Cr.
“We have achieved all-time high Loan Book of ₹3,936 Crore as of 31st March 2026, registering a strong QoQ growth of 23% and YoY growth of 75%.”
AUM CAGR guidance raised
HIGH confidence
What: 20% → 25-30%
“AUM: 25 - 30% CAGR... we want to give reasonable time to the new management to settle so that in aggression, we shouldn't be doing any error.”
What Are the Key Risks for SG Finserve Ltd?
Earnings deceleration risks from management commentary
Past license issues caused a 6-8 month business halt and forced a run-down of th
MEDIUMTrigger: The company had to transition to a Type II license from RBI.
Management view: Management is now being conservative with guidance and maintaining high capital adequacy.
Monitor: regulatory
Exposure to the steel sector through the APL Apollo group ecosystem
LOWTrigger: Supply chain financing is anchored around steel manufacturers and dealers.
Management view: Diversifying anchors and focusing on secured lending with hard collateral.
Monitor: commodity
What Is SG Finserve Ltd's Management Saying?
Key quotes from recent conference calls
“On the loan book size for the next four years, we look to grow at 20% CAGR to take the book to INR 7,500 crores by March 2030. [Previous AUM Growth guidance]”
“Commenced new SCF product - Factoring of receivables... The B2B trade happening between buyers and sellers, that is a segment we want to target through factoring. [Initiative: Factoring of Receivables]”
“Board has approved to explore and evaluate the areas of ARC, AIF, Insurance Broking, and FinTech business... Nothing material is going to happen in next 2, 3 years. [Initiative: New Business Verticals (ARC, AIF, Insurance Broking)]”
“One, the business got halted because of the renewal of license... which put the company behind by six to eight months. [Risk (regulatory): MEDIUM]”
What Did SG Finserve Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹105.7 Cr
YoY +95%QoQ +23%
Why: Growth was driven by a 23% QoQ increase in the loan book and a 306% surge in fee and other income.
Total income nearly doubled year-on-year, reflecting rapid scaling of the supply chain financing book.
PAT
₹42.3 Cr
YoY +78%QoQ +30%
Why: Profitability improved due to a disciplined cost-to-income ratio of below 15% and maintaining zero NPAs.
PAT growth of 30% QoQ aligns with the company's long-term profitability guidance targets.
Other Highlights
• Gross disbursements crossed ₹25,000 Cr during the year, registering 40% YoY growth.
• Achieved all-time high Loan Book of ₹3,936 Crore as of March 31, 2026.
• Maintained NIL NPAs throughout the fiscal year despite 75% YoY loan book growth.
What Sector Metrics Matter for SG Finserve Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total Loan Book
₹3,936 Cr
YoY +75%QoQ +23%
Why: Driven by strong demand in supply chain financing and deepening dealer engagement.
Net NPAs
NIL
YoY 0%QoQ 0%
Why: Strict adherence to secured lending and high-pedigree anchor selection.
Net Worth
₹1,460 Cr
YoY +40%+
Why: Strengthened by warrant conversion of ₹316 Cr during the quarter.
Return on Assets (RoA)
4.8%
Why: High yields in Tier 2 dealer financing and low operating costs.
Return on Equity (RoE)
12.0%
Why: Calculated on an annualized basis for the full year.
Cost-to-Income Ratio
<15%
Why: Highly disciplined operational model and digital-led acquisition.
Debt/Equity Leverage
1.9x
Why: Conservative leverage maintained to provide headroom for future growth.
Gross Disbursements
₹25,368 Cr
YoY +40%
Why: Increased velocity of invoice financing and new anchor additions.
Net Interest Income
₹199.2 Cr
YoY +44%QoQ +27%
Why: Expansion of the loan book and stable cost of funds.
Promoter Holding
~53%
YoY +5%
Why: Promoters infused funds and converted warrants to support the business.
What Is SG Finserve Ltd's Management Guidance?
Forward-looking targets from management for Long-term
Revenue Growth Target
32.5%
OPM Guidance
14–16%
Revenue Outlook
30-35% CAGR
Margin Outlook
Targeting RoA of 4.5% - 5.0% and RoE of 14% - 16%
Volume
AUM targeted to grow at 25-30% CAGR
Management Tone: BULLISH
Guidance Changes
RAISED
AUM CAGR: 20% → 25-30%
How Fast Is SG Finserve Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +94% | +80% | Stable |
| PAT (Net Profit) | +75% | +80% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: SG Finserve Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were SG Finserve Ltd's latest quarterly results?
SG Finserve Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +75.0% (stable)
- Revenue Growth YoY: +94.4%
- Net Interest Margin: 53.00%
Is SG Finserve Ltd's profit growing or declining?
SG Finserve Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +75.0% (latest quarter)
- PAT Growth QoQ: +31.3% (sequential)
- 3-Year PAT CAGR: +80.0%
- Trend: Stable — consistent growth pattern
What is SG Finserve Ltd's revenue growth trend?
SG Finserve Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +94.4%
- Revenue Growth QoQ: +22.1% (sequential)
- 3-Year Revenue CAGR: +80.0%
What is SG Finserve Ltd's asset quality trend?
SG Finserve Ltd's asset quality trend is insufficient_data.
What is SG Finserve Ltd's 3-year profit and revenue CAGR?
SG Finserve Ltd's long-term compounding rates
- 3-Year Profit CAGR: +80.0%
- 3-Year Revenue CAGR: +80.0%
Is SG Finserve Ltd's growth accelerating or decelerating?
SG Finserve Ltd's earnings growth is stable with strong momentum on a sequential basis.
- YoY Acceleration: +41.7% bps
- Sequential Acceleration: +17.0% bps
What is SG Finserve Ltd's trailing twelve month (TTM) performance?
SG Finserve Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹127 Cr
- TTM PAT Growth: +56.8% YoY
- TTM Revenue: ₹334 Cr
- TTM Revenue Growth: +95.3% YoY
Is SG Finserve Ltd overvalued or undervalued?
SG Finserve Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 30.9x
- Price-to-Book: 2.7x
What is SG Finserve Ltd's current PE ratio?
SG Finserve Ltd's current PE ratio is 30.9x.
- Current PE: 30.9x
- Market Cap: 3.9K Cr
How does SG Finserve Ltd's valuation compare to its history?
SG Finserve Ltd's current PE is 30.9x.
- Current PE: 30.9x
- Valuation Assessment: Significantly Overvalued
What is SG Finserve Ltd's price-to-book ratio?
SG Finserve Ltd's price-to-book ratio is 2.7x.
- Price-to-Book (P/B): 2.7x
- Book Value per Share: ₹224
- Current Price: ₹599
Is SG Finserve Ltd a fundamentally strong company?
SG Finserve Ltd is rated Weak with a fundamental score of 37/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +75.0% (20% weight)
- PAT Growth QoQ: +31.3% (15% weight)
- Earnings trend: stable (5% weight)
Is SG Finserve Ltd debt free?
SG Finserve Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹3,000 Cr
What is SG Finserve Ltd's return on equity (ROE) and ROCE?
SG Finserve Ltd's return ratios over recent years
- FY2024: ROE 11.0%
- FY2025: ROE 9.0%
- FY2026: ROE 10.0%
Is SG Finserve Ltd's cash flow positive?
SG Finserve Ltd's operating cash flow is negative (FY2026).
- Cash from Operations (CFO): ₹-2,000 Cr
- Free Cash Flow (FCF): ₹-2,000 Cr
- CFO/PAT Ratio: -1227% (weak cash conversion)
What is SG Finserve Ltd's dividend yield?
SG Finserve Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹599
Who holds SG Finserve Ltd shares — promoters, FII, DII?
SG Finserve Ltd's shareholding pattern (Apr 2026)
- Promoters: 52.9%
- FII (Foreign): 0.2%
- DII (Domestic): 3.3%
- Public: 43.6%
Is promoter holding increasing or decreasing in SG Finserve Ltd?
SG Finserve Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 52.9% (Apr 2026)
- Previous Quarter: 52.9% (Mar 2026)
- Change: -0.01% (decreasing — worth monitoring)
How long has SG Finserve Ltd been outperforming Nifty 500?
SG Finserve Ltd has been outperforming Nifty 500 for 7 consecutive weeks, indicating building momentum.
Is SG Finserve Ltd a new momentum entry or an established outperformer?
SG Finserve Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for SG Finserve Ltd?
SG Finserve Ltd has 6 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — The business model relies on high-pedigree anchors and secured lending against hard collateral or shares.
- Management Or Ownership Change — New management has taken charge to drive the next phase of 'Deepening and Widening' strategy.
- Regulatory Approval Or License Win — The license allows the company to enter the B2B open account financing market.
- Interest Cost Reduction Deleveraging — High credit ratings and a strong equity base allow for competitive borrowing rates from 18 banks.
What are the key risks in SG Finserve Ltd?
SG Finserve Ltd has 2 key risks worth monitoring
- [MEDIUM] Past license issues caused a 6-8 month business halt and forced a run-down of th — The company had to transition to a Type II license from RBI.
- [LOW] Exposure to the steel sector through the APL Apollo group ecosystem — Supply chain financing is anchored around steel manufacturers and dealers.
What did SG Finserve Ltd's management say in the latest earnings call?
In Q4 FY26, SG Finserve Ltd's management highlighted
- "On the loan book size for the next four years, we look to grow at 20% CAGR to take the book to INR 7,500 crores by March 2030. [Previous AUM Growth g..."
- "Commenced new SCF product - Factoring of receivables... The B2B trade happening between buyers and sellers, that is a segment we want to target throug..."
- "Board has approved to explore and evaluate the areas of ARC, AIF, Insurance Broking, and FinTech business... Nothing material is going to happen in ne..."
What is SG Finserve Ltd's management guidance for growth?
SG Finserve Ltd's management has provided the following forward guidance for Long-term
- Revenue growth target: 32.5%
- OPM guidance: 14–16%
- Capex plan: null for Not Given
- Management tone: bullish
- Milestone: [RAISED] AUM CAGR: 20% → 25-30%
What sector-specific metrics matter most for SG Finserve Ltd?
SG Finserve Ltd's most important sub-sector-specific KPIs from the latest concall
- Total Loan Book: ₹3,936 Cr (YoY +75%) (QoQ +23%) — Driven by strong demand in supply chain financing and deepening dealer engagement.
- Net NPAs: NIL (YoY 0%) (QoQ 0%) — Strict adherence to secured lending and high-pedigree anchor selection.
- Net Worth: ₹1,460 Cr (YoY +40%+) — Strengthened by warrant conversion of ₹316 Cr during the quarter.
- Return on Assets (RoA): 4.8% — High yields in Tier 2 dealer financing and low operating costs.
- Return on Equity (RoE): 12.0% — Calculated on an annualized basis for the full year.
- Cost-to-Income Ratio: <15% — Highly disciplined operational model and digital-led acquisition.
Is SG Finserve Ltd worth studying for long term investment?
Based on quantitative research signals, here is why SG Finserve Ltd may be worth studying
- Earnings growing at +75.0% YoY
What is the investment thesis for SG Finserve Ltd?
SG Finserve Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +94.4% YoY
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Past license issues caused a 6-8 month business halt and forced a run-down of th
What is the future outlook for SG Finserve Ltd?
SG Finserve Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Asset Quality Improvement
- Key Risk: Past license issues caused a 6-8 month business halt and forced a run-down of th
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.