SG Finserve files BRSR for FY26 with zero regulatory fines

SG Finserve Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, disclosing zero fines, penalties, or settlement amounts imposed by regulators during the period. The non-banking financial company (NBFC) reported that it achieved 100% coverage for training and awareness programmes on responsible business conduct principles for its Board of Directors, Key Managerial Personnel, and employees. The company also confirmed that no complaints were received from customers, employees, or communities regarding its principles of operation during FY 2025-26 and FY 2024-25.

The report, submitted pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the company's environmental, social, and governance (ESG) performance. SG Finserve stated that its direct environmental footprint is limited, but it actively promotes digital financial services to minimise paper consumption. The company reported a total workforce of 76 permanent employees, with no workers on its rolls as defined under the BRSR guidance note. The gender diversity stood at 26% female representation among employees, while the Board of Directors comprised 17% women.

Environmental Performance

SG Finserve disclosed its environmental metrics for FY26, reporting a total energy consumption of 576.98 GJ, derived entirely from non-renewable sources. The energy intensity per rupee of turnover was recorded at 1.73 GJ/Crore. The company reported total water withdrawal of 4,380 kilolitres, all sourced from groundwater, resulting in a water intensity of 13.13 KL/Crores of turnover. In terms of greenhouse gas emissions, the company reported total Scope 1 emissions of 13.9 metric tonnes of CO2 equivalent and Scope 2 emissions of 76.4 metric tonnes of CO2 equivalent. The combined emission intensity was 0.2 TCO2e/Crores of turnover.

Parameter	FY 2025-26	FY 2024-25
Total Energy Consumed	576.98 GJ	468.88 GJ
Energy Intensity	1.73 GJ/Crore	2.74 GJ/Crore
Total Water Withdrawal	4,380.0 KL	5,048.0 KL
Water Intensity	13.13 KL/Crores	29.51 KL/Crores
Total Scope 1 Emissions	13.9 tCO2e	13.6 tCO2e
Total Scope 2 Emissions	76.4 tCO2e	57.6 tCO2e
Total GHG Intensity	0.2 tCO2e/Crore	0.4 tCO2e/Crore

Social and Governance Metrics

The company reported that 100% of permanent employees were covered by health and accident insurance. Spending on well-being measures accounted for 0.62% of total revenue in FY 2025-26, compared to 0.69% in the previous year. SG Finserve noted that it had successfully commercialised its Factoring business in March 2026, following RBI approval, to expand into broader B2B trade segments. The report identified material issues such as cybersecurity risks and talent development as key focus areas, with the company implementing strong cybersecurity frameworks and continuous training programs to mitigate these risks.

Governance disclosures revealed that the company has not carried out an independent assessment of its policies by an external agency, relying instead on internal evaluations. The report confirmed that no safety-related incidents, cases of sexual harassment, or instances of child or forced labour were reported during the year. SG Finserve affirmed its commitment to ethical conduct, transparency, and accountability, stating that it adheres to a zero-tolerance approach towards corruption and bribery.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.40%	-1.10%	+0.82%	+46.10%	+46.54%	+46.54%

SG Finserve Limited reported a 57.6% increase in net profit to ₹127.66 crore for the financial year ended March 31, 2026, compared to ₹80.99 crore in the previous year. Total income surged 96% to ₹333.66 crore, driven by a 94.3% rise in interest income to ₹320.15 crore. The loan book expanded 75.2% to ₹3,935.56 crore, reflecting the company's strategic shift towards MSME supply chain financing.

The company's net interest income grew 44.1% to ₹199.21 crore, while operating expenses increased 23.7% to ₹25.28 crore. Profit before tax rose 55.7% to ₹171.55 crore. The capital adequacy ratio stood at a healthy 36.58% as of March 31, 2026, significantly above the regulatory minimum of 15%.

Financial Performance

The audited financial statements for FY26 highlighted robust growth across key metrics. The company successfully transitioned from a broad-based NBFC to a precision-led MSME supply chain financier, building a platform with pre-validated risk and visible cash flows. This structural shift contributed to the substantial expansion in assets and profitability.

Particulars	FY26 (₹ crore)	FY25 (₹ crore)	Change (%)
Interest Income	320.15	164.75	94.3%
Fee & Other Income	12.67	5.18	144.6%
Total Income	333.66	170.25	96.0%
Net Interest Income	199.21	138.27	44.1%
Profit After Tax	127.66	80.99	57.6%
Loan Book (EOP)	3,935.56	2,246.05	75.2%

Operational Highlights

During the year, the company secured a Certificate of Registration from the Reserve Bank of India on January 07, 2026, permitting it to commence factoring business operations. Additionally, the company's equity shares were listed on the National Stock Exchange of India Limited with effect from August 05, 2025. The Board of Directors did not recommend a dividend for FY 2025-26, opting to retain earnings to support future growth.

The company maintained a strong asset quality with zero non-performing assets. It also redeemed its Non-Convertible Debentures aggregating to ₹50 crore on April 06, 2026, following a modification of terms approved by stakeholders.