SG Finserve Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript SG Finserve Ltd filed with BSE on 18 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
SG Finserve reported its highest ever quarterly PBT of INR72 crores in Q1 FY27, up 27% quarter-on-quarter, with the loan book reaching INR4,552 crores, up 16% quarter-on-quarter and 82% year-on-year. Management said net worth stood at INR1,539 crores with a leverage of 2.2x and capital adequacy ratio of 32%, while asset quality remained at nil NPAs. Management said it has visibility to achieve a PBT of around INR300 crores for FY27, implying around 75% year-on-year growth.
Numbers mentioned
PBT: INR72 crores (Q1 FY27)
p. 3
“We have achieved our highest ever quarterly PBT of INR72 crores, representing 27% quarter-on-quarter growth.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Loan book: INR4,552 crores (Q1 FY27)
p. 3
“Our loan book also has reached a record INR4,552 crores, growing 16% quarter-on-quarter and 82% year-on-year basis.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Net worth: INR1,539 crores (Q1 FY27)
p. 3
“Our net worth stands strong at INR1,539 crores, supported by a moderate leverage of 2.2x and capital adequacy ratio of strong 32%.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Return on asset: 5.1% (Q1 FY27)
p. 3
“During Q1, our annualized return on asset has been 5.1% and annualized return on equity has been 14%.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Return on equity: 14% (Q1 FY27)
p. 3
“During Q1, our annualized return on asset has been 5.1% and annualized return on equity has been 14%.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Net worth: INR1,539 crores (as of 30th June)
p. 5
“INR1,539 crores already on 30th of June.”
Vinay Gupta, page 5 of the filed PDF · View the filing
Leverage: 1.9x on 31st March, 2.2x currently
p. 4
“We had 1.9x leverage on 31st March. Currently, we stand at 2.2.”
Vinay Gupta, page 4 of the filed PDF · View the filing
Equity base: INR1,460 crores (March)
p. 4
“INR1,460 crores was the equity base on March, INR20 crores we raised as a warrant conversion in April.”
Vinay Gupta, page 4 of the filed PDF · View the filing
Anchor mandates and MOU value: 52 anchors, INR7,700 crores MOU
p. 7
“There are 52 anchor mandates with INR7,700 crores worth MOU signed.”
Vinay Gupta, page 7 of the filed PDF · View the filing
Average yield on AUM: 12.5% (Q1, Q3, Q4)
p. 11
“we continue to maintain the average yield of 12.5% on our overall AUM.”
Vinay Gupta, page 11 of the filed PDF · View the filing
Factoring AUM: INR225 crores in June vs INR175 crores in March (Q1 FY27)
p. 17
“I think INR225 crores was the factoring outstanding in June. We had INR175 crores outstanding in the month of March.”
Vinay Gupta, page 17 of the filed PDF · View the filing
Factoring share of AUM: around 5%
p. 8
“Around 5% of our total AUM is around factoring today.”
Vinay Gupta, page 8 of the filed PDF · View the filing
APL Apollo ecosystem share of AUM: around one-third
p. 7
“Around one-third of our AUM, it is lower in June quarter, but historically and going forward, we see that around one-third of our overall AUM should be coming from APL Apollo ecosystem.”
Vinay Gupta, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
PBT — INR300 crores · FY27
stated conditionally by Vinay Gupta
p. 3
“We have clear visibility to achieve a PBT of around INR300 crores given the current run rate which we are operating at.”
Vinay Gupta, page 3 of the filed PDF · View the filing
AUM CAGR — 25% to 30% · three to four years
stated as an aspiration by Vinay Gupta
p. 9
“Over a period of three to four years, we plan to grow our AUM around 25% to 30% growth.”
Vinay Gupta, page 9 of the filed PDF · View the filing
Profitability CAGR — 30% to 35% · three to four years
stated as an aspiration by Vinay Gupta
p. 9
“However, profitability we are targeting to grow at 30% to 35% CAGR.”
Vinay Gupta, page 9 of the filed PDF · View the filing
AUM — INR10,000 crores · FY30
stated conditionally by Vinay Gupta
p. 10
“Excluded. FY30 is when we are targeting to reach INR10,000 crores.”
Vinay Gupta, page 10 of the filed PDF · View the filing
Cost-to-income ratio — below 15%
stated firmly by Vinay Gupta
p. 6
“Our guidance is to maintain cost-to-income below 15%.”
Vinay Gupta, page 6 of the filed PDF · View the filing
Return on equity — towards 16% · two-year
stated as an aspiration by Vinay Gupta
p. 5
“Over a period of two-year, if we transit from a 2x leverage to 3x leverage, our return on equity will naturally transit from present 14% to towards 16%.”
Vinay Gupta, page 5 of the filed PDF · View the filing
Quarter-on-quarter AUM growth — 15%, 16% · coming quarters
stated as an aspiration by Vinay Gupta
p. 15
“Yes, you may be right.”
Vinay Gupta, page 15 of the filed PDF · View the filing
Quarter-on-quarter PAT growth — 8% to 10% · coming quarters
stated as an aspiration by Vinay Gupta
p. 15
“So, quarter-on-quarter maybe 8% to 10% is something which we are targeting because that will be more sustainable and it will only help us maintain credit cost in check.”
Vinay Gupta, page 15 of the filed PDF · View the filing
Insurance broking business launch — at least two-three quarters away
stated conditionally by Vinay Gupta
p. 13
“So, it is subject to regulatory aspects before we commercialize this business. It is still, at least two-three quarters away from here.”
Vinay Gupta, page 13 of the filed PDF · View the filing
Return on asset — 4.5% to 5%
stated firmly by Vinay Gupta
p. 19
“We are on track to maintain our return on asset ranging from 4.5% to 5%, and we have already seen in Q1 that we already achieved 5.1%.”
Vinay Gupta, page 19 of the filed PDF · View the filing
Return on equity — 16%
stated as an aspiration by Vinay Gupta
p. 19
“Our aspiration is to grow from 14% to 16% as we move forward.”
Vinay Gupta, page 19 of the filed PDF · View the filing
Insurance broking IRDAI approval — before Q4
stated conditionally by Vinay Gupta
p. 12
“But I think I don't expect it to happen before Q4. Not even Q3.”
Vinay Gupta, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said equity growth from accumulated profit alone should reach around INR1,700 crores by FY27 close and no fresh equity raise is planned.
Answered by Vinay Gupta
Asked by Abhi Jain: Given the PBT guidance, will the company need to raise equity to reach the implied year-end net worth?
p. 5
“Abhi, we don't plan to raise any equity because we don't need to raise any equity.”
Vinay Gupta, page 5 of the filed PDF · View the filing
Management said geopolitical uncertainty has reduced incremental working capital demand but has not translated into credit cost pressure.
Answered by Vinay Gupta
Asked by Abhi Jain: Is geopolitical tension creating risks for the MSME/SME supply chain business?
p. 5
“The geopolitical uncertainty is a reality. Thankfully, we are not seeing that as a challenge to our credit cost.”
Vinay Gupta, page 5 of the filed PDF · View the filing
Management said opex is better measured as a percentage of average book (around 1%) rather than cost-to-income, and this level will be maintained.
Answered by Vinay Gupta
Asked by Daksh Jain: How will the cost-to-income ratio evolve given it is currently well below the 14-15% guidance?
p. 6
“1% is the opex cost which we envisage and we have been maintaining.”
Vinay Gupta, page 6 of the filed PDF · View the filing
Management said roughly two-thirds of the book is working capital/supply chain solutions and one-third is other cross-sell business such as LAP.
Answered by Vinay Gupta
Asked by Daksh Jain: What is the breakup of the loan book between MSME/supply chain and other segments?
p. 7
“around two-third of our business hover around working capital solutions, supply chain solutions, factoring solutions, which is a bouquet of working capital solutions across MSMEs and corporates.”
Vinay Gupta, page 7 of the filed PDF · View the filing
Management said hospitals are served through factoring of their receivables and payables.
Answered by Vinay Gupta
Asked by Kushal Jajodia: What kind of business does the company do with hospitals listed among corporates?
p. 8
“I will not be able to divulge too much detail, but hospital has receivable and payable in their balance sheet.”
Vinay Gupta, page 8 of the filed PDF · View the filing
Management said nil NPA is the stated aspiration but acknowledged losses may occur in a lending business over time.
Answered by Vinay Gupta
Asked by Akash Shrivastava: Can nil NPA be sustained going forward given the company is in a lending business?
p. 9
“But we do understand that we are into a lending business. And in the lending business, the accident, losses may happen, may occur in future.”
Vinay Gupta, page 9 of the filed PDF · View the filing
Management estimated the receivables of the top 1,000 corporates in India at around INR25 lakh crores as the target market.
Answered by Vinay Gupta
Asked by Akash Shrivastava: What is the total addressable market for the factoring/channel finance business?
p. 9
“Around top 1,000 corporates in the country, their receivable on the balance sheet is around INR25 lakh crores.”
Vinay Gupta, page 9 of the filed PDF · View the filing
Management said the 25-30% AUM CAGR and 30-35% PAT CAGR guidance is unchanged, though the stronger Q1 base could mean the FY30 target is reached earlier.
Answered by Vinay Gupta
Asked by Akash Shrivastava: Is the company raising its AUM and PAT guidance for FY30 versus earlier disclosures?
p. 13
“Now, on the guidance, we have been maintaining our guidance of 25% to 30% CAGR growth on AUM and 30% to 35% CAGR on the profitability.”
Vinay Gupta, page 13 of the filed PDF · View the filing
Management said the 27% quarter-on-quarter growth was partly driven by a one-time equity infusion timing and will normalize to a lower but steady pace.
Answered by Vinay Gupta
Asked by Vipul Lamba: Will growth momentum from Q1 continue in subsequent quarters?
p. 15
“So, quarter-on-quarter maybe 8% to 10% is something which we are targeting because that will be more sustainable and it will only help us maintain credit cost in check.”
Vinay Gupta, page 15 of the filed PDF · View the filing
Management said the priority is balance sheet resilience and avoiding NPAs rather than maximizing growth speed.
Answered by Anubhav Gupta
Asked by Vipul Lamba: Why is the AUM growth guidance of 25-30% conservative given the current pace?
p. 15
“Our mission number one is not growth, but to ensure that there is no NPA.”
Anubhav Gupta, page 15 of the filed PDF · View the filing
Management said factoring outstanding grew from INR175 crores in March to INR225 crores in June.
Answered by Vinay Gupta
Asked by Vipul Lamba: How is the factoring AUM growing and what was the quarter-on-quarter change?
p. 17
“I think INR225 crores was the factoring outstanding in June. We had INR175 crores outstanding in the month of March.”
Vinay Gupta, page 17 of the filed PDF · View the filing
Management said supply chain finance requires high disbursement velocity relative to AUM and generally has stronger credit quality that is not visible in blended bank/NBFC balance sheets.
Answered by Vinay Gupta
Asked by Prince Choudhary: Why haven't more large banks and NBFCs entered the supply chain finance niche despite its growth rate?
p. 18
“For example, we did disbursement of maybe more than INR7,000 crores to build AUM of INR4,500 crores.”
Vinay Gupta, page 18 of the filed PDF · View the filing
Risks flagged
Geopolitical uncertainty reducing incremental working capital demand from traders and end users
p. 5
“it's a business risk, in a way because the kind of enhancements or incremental working capital requirements that traders and the end users needed in the past, that has come down.”
Vinay Gupta, page 5 of the filed PDF · View the filing
Possibility of future credit losses despite current nil NPA track record
p. 9
“in the lending business, the accident, losses may happen, may occur in future.”
Vinay Gupta, page 9 of the filed PDF · View the filing
Insurance broking and GIFT City businesses are subject to regulatory approval delays
p. 12
“It's a long-term plan, Akhilesh, because it's subject to dual regulatory approval from RBI and IFSCA both.”
Vinay Gupta, page 12 of the filed PDF · View the filing
Guidance could change if geopolitical and business conditions shift materially
p. 14
“Unless few things drastically change because of geopolitical and the business perspective, this is something which have a clear sight and visibility as per the current run rate.”
Vinay Gupta, page 14 of the filed PDF · View the filing
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