SG Finserve Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript SG Finserve Ltd filed with BSE on 22 Apr 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 operating income of INR 334 crores for FY26, up 96% year-on-year, with a loan book of INR 3,936 crores, up 75%, and profit after tax of INR 128 crores, up 58%. Q4 PAT was INR 42 crores, a sequential increase of 30%, and gross disbursements for the full year crossed INR 25,000 crores. Management discussed the supply chain finance business model, nil NPA guidance, leverage levels, TReDS platform onboarding, and growth plans across dealer financing, factoring, and cross-sell businesses.
Numbers mentioned
Operating income: INR 334 crores (FY26)
p. 3
“We did operating income of INR 334 crores, year-on-year growth of 96%, achieved Loan Book of INR 3,936 crores, year-on-year growth of 75% and Profit after tax was INR 128 crores, year-on-year growth of 58%.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Loan Book: INR 3,936 crores (FY26 closing)
p. 3
“Our closing Loan Book of INR 3,936 crores is at all-time high, which is backed by our core business - supply chain finance and commercialized of factoring business in the month of March.”
Vinay Gupta, page 3 of the filed PDF · View the filing
PAT: INR 42 crores (Q4 FY26)
p. 3
“In Q4, our PAT was INR 42 crores, sequential growth of 30% on quarter-on-quarter basis.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Gross disbursements: more than INR 25,000 crores (FY26)
p. 3
“Gross disbursements for the full year have crossed the benchmark of INR 25,000 crores, which shows our digital ability and invoice financing capabilities.”
Vinay Gupta, page 3 of the filed PDF · View the filing
Factoring book outstanding: INR 175 crores (as of 31st March)
p. 8
“If you look at our results closely, INR 175 crores is the factoring book outstanding on 31st March.”
Vinay Gupta, page 8 of the filed PDF · View the filing
Average AUM: INR 2,640 crores (FY26)
p. 11
“We closed our average AUM for FY26 at INR 2,640 crores against our average AUM for FY25 at INR 1,282 crores.”
Vinay Gupta, page 11 of the filed PDF · View the filing
Average AUM: INR 3,265 crore (Q4 FY26)
p. 14
“Average AUM for Q4 was INR 3,265 crore.”
Vinay Gupta, page 14 of the filed PDF · View the filing
Equity base: INR 1,481 crores
p. 6
“We are currently sitting with a INR 1,481 crores equity, added INR 21 crores incremental warrants got converted in the month of April.”
Vinay Gupta, page 6 of the filed PDF · View the filing
Leverage: 1.9x (current)
p. 6
“So it's a pool of equity. Currently we are leveraged at 1.9x on the standalone NBFC.”
Vinay Gupta, page 6 of the filed PDF · View the filing
Related party exposure: lesser than INR 100 crores (current)
p. 10
“All related party transactions are reported to the Board and declared in results. Our related party exposure would be, what, lesser than INR 100 crores currently, Sanjay?”
Vinay Gupta, page 10 of the filed PDF · View the filing
Bank lines available: INR 3,000 to INR 3,500 crores
p. 6
“It will be somewhere between INR 3,000 to INR 3,500 crores, number one.”
Vinay Gupta, page 6 of the filed PDF · View the filing
Provision balance: around INR 18 crores
p. 15
“No, Abhi, we have accumulated a provision of around INR 18 crores in our balance sheet, if you look at our capital structure.”
Vinay Gupta, page 15 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.
AUM growth — 25% to 30% · medium to long term
stated firmly by Vinay Gupta
p. 13
“Yes, 25% to 30% CAGR remain our guidance for the AUM growth.”
Vinay Gupta, page 13 of the filed PDF · View the filing
AUM growth — 35%-40% · FY27
stated as an aspiration by Vinay Gupta
p. 5
“Our aspiration on the AUM for FY '27 is around 35%-40% growth.”
Vinay Gupta, page 5 of the filed PDF · View the filing
AUM target — INR 10,000 crores · three to four years
stated firmly by Vinay Gupta
p. 7
“INR 10,000 crores is our internal target. INR 10,000 crores of AUM we can easily reach in three to four years without being dependent on any fresh equity, because we will accumulate profits also and there is a enough bank lines available and more bank lines will get added.”
Vinay Gupta, page 7 of the filed PDF · View the filing
Leverage — 3x · 2 to 3 years
stated as an aspiration by Vinay Gupta
p. 13
“Currently our leverage is 1.9, broadly let's say 2x. And our comfortable range is 2x - 3x with aspiration to achieve 3x over the next two to three years.”
Vinay Gupta, page 13 of the filed PDF · View the filing
Return on Asset — 4.5% to 5%
stated firmly by Vinay Gupta
p. 18
“On Profitability, we shall operate with return on asset of 4.5% to 5% kind of a range, with return on equity of 14% to 16% kind of a range, and cost to income between 13% to 17%.”
Vinay Gupta, page 18 of the filed PDF · View the filing
NPA — nil
stated as an aspiration by Vinay Gupta
p. 18
“As SG Finserve, as your NBFC, we continue to remain a conservative lender and that is our philosophy. That is why our guidance on NPAs continues to be nil.”
Vinay Gupta, page 18 of the filed PDF · View the filing
TReDS platform go-live — Q1
stated firmly by Vinay Gupta
p. 8
“I think this Q1 only.”
Vinay Gupta, page 8 of the filed PDF · View the filing
PAT CAGR guidance — 30%-35%
stated firmly by Vinay Gupta
p. 17
“Future PAT guidance is on the PAT of previous financial year and not on exit run rate of Q4.”
Vinay Gupta, page 17 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 explained the supply chain finance model relies on short-term, invoice-backed loans with monitored end-use and early warning systems.
Answered by Vinay Gupta
Asked by Abhi Jain: How does the company maintain nil NPAs and what is the competitive advantage of its business model?
p. 4
“So we are giving loans which are short-term in nature, with end-use monitored, invoice backed, and the beneficiary is also locked.”
Vinay Gupta, page 4 of the filed PDF · View the filing
Management said existing bank lines are sufficient and there is no need for fresh equity in the near term.
Answered by Vinay Gupta
Asked by Kushal Jajodia: Is the company planning to fund AUM growth through fresh equity or borrowing?
p. 6
“We currently have enough bank lines available with us which are not even fully utilized.”
Vinay Gupta, page 6 of the filed PDF · View the filing
Management said leverage could rise to 3x over 2-3 years, done cautiously.
Answered by Vinay Gupta
Asked by Parin Gala: What is the comfortable debt-to-equity ratio and timeline to reach it?
p. 7
“As a management, we think we can go up to 3x. But that will happen over a period, in phase manner, maybe 2 years to 3 years.”
Vinay Gupta, page 7 of the filed PDF · View the filing
Management said the growth was broad-based across the year and not driven by one-off steel price increases.
Answered by Vinay Gupta
Asked by Raghav Bhugodia: Did rising steel prices help drive AUM growth?
p. 11
“So one-off instance like increase steel prices is not the reason for closing AUM on 31st March.”
Vinay Gupta, page 11 of the filed PDF · View the filing
Management confirmed it deliberately gave conservative guidance following a change in management and prefers under-committing and over-delivering.
Answered by Vinay Gupta
Asked by Manish: Has the company been overly conservative in its guidance given the strong quarter?
p. 11
“But under-committing, over-delivering is something which suits us best.”
Vinay Gupta, page 11 of the filed PDF · View the filing
Management said the nil NPA guidance reflects philosophy and messaging to staff, not overconfidence, while acknowledging lending carries risk.
Answered by Vinay Gupta
Asked by Abhi Jain: Should the company build in a buffer for NPA guidance given its conservatism elsewhere?
p. 15
“Abhi, I am not living in that myth our overconfidence. I know, we are in lending business and in lending business, we take risks.”
Vinay Gupta, page 15 of the filed PDF · View the filing
Management attributed the apparent decline to near-zero leverage for part of the prior year, which inflated ROA relative to ROE.
Answered by Vinay Gupta
Asked by Varun Gajaria: Why did ROA shrink by around 100 bps last year?
p. 13
“Our leverage was virtually zero for six months in last financial year, which is why the ROA appears very high.”
Vinay Gupta, page 13 of the filed PDF · View the filing
Management said the company had under-earned fees in Q3 and corrected this in Q4 by focusing on fee generation.
Answered by Vinay Gupta
Asked by Rajat: What explains the jump in fee income this quarter?
p. 14
“Honestly accepting the fact that we could have generated better fees income in Q3 given the potential we have which we have course corrected in Q4.”
Vinay Gupta, page 14 of the filed PDF · View the filing
Management said no current stress is visible but acknowledged potential impact from geopolitical issues is being monitored.
Answered by Vinay Gupta
Asked by Akhilesh Kumar: Is there stress in top sectors given ongoing geopolitical events?
p. 18
“No, we are not seeing any stress as of today, but we are not ignoring the fact that there can be a potential stress due to ongoing geopolitical issue and we are engaging our borrowers, our anchors and we are vigilant.”
Vinay Gupta, page 18 of the filed PDF · View the filing
Risks flagged
Potential indirect impact from ongoing geopolitical situation on borrower industries
p. 12
“We did prognosis of our portfolio in light of the ongoing geopolitical situation and there is no indirect impact also.”
Vinay Gupta, page 12 of the filed PDF · View the filing
Possible stress in top sectors due to geopolitical events affecting fuel and steel-related industries
p. 18
“You are right, but if I may have a liberty to ask you a counter question.”
Vinay Gupta, page 18 of the filed PDF · View the filing
Inherent risk of losing money in the lending business despite nil NPA target
p. 15
“I know, we are in lending business and in lending business, we take risks. We can lose money, and I know, we will lose money, but I am not targeting to lose money.”
Vinay Gupta, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.