SG Finserve incorporates wholly owned subsidiary SG Alternative Investment Fund

SG Finserve Limited has incorporated a wholly owned subsidiary, SG Alternative Investment Fund Limited, to expand its presence in the investment management sector. The new entity was incorporated on July 16, 2026, and received its Certificate of Incorporation on July 17, 2026. This strategic move allows the company to act as an investment manager and sponsor for setting up a Category III Alternate Investment Fund.

The subsidiary, SG Alternative Investment Fund Limited, is incorporated in India and will operate within the Investment Management and Financial Advisory Services industry. It will function as management consultants, investment managers, sponsors, settlors, trustees, beneficiaries, or in other professional or fiduciary capacities. The entire paid-up share capital of the subsidiary is held by SG Finserve Limited, ensuring complete control over the new venture.

Financial and Structural Details

The incorporation of SG Alternative Investment Fund Limited was completed with a cash consideration. The subsidiary has been established with an authorized capital of ₹1,00,00,000, divided into 10,00,000 equity shares of ₹10 each. As of the date of incorporation, 100% of the shareholding is held by SG Finserve Limited.

The following table outlines the key details of the newly incorporated entity:

S. No.	Particulars	Details
1	Name of the Entity	SG Alternative Investment Fund Limited
2	Date of Incorporation	July 16, 2026
3	Country of Incorporation	India
4	Industry	Investment Management and Financial Advisory Services
5	Authorized Capital	₹1,00,00,000
6	Shareholding	100% held by SG Finserve Limited

Regulatory Disclosures

The disclosure was submitted to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had initially intimated the exchanges about the proposed incorporation on January 23, 2026. The details of the subsidiary are provided in Annexure A to the letter and are available on the company's website.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.28%	-3.83%	+7.41%	+59.50%	+58.52%	+58.52%

SG Finserve Limited reported its financial results for the quarter ended June 30, 2026, demonstrating strong year-over-year growth driven by robust interest income and improved operational efficiency. The company's net profit for Q1FY27 rose to ₹53.68 crore, a 119% increase from ₹24.52 crore in Q1FY26. Operating income for the quarter stood at ₹136.13 crore, more than doubling from ₹67.50 crore in the same period last year. The company maintained a NIL NPA book and achieved a Return on Assets of 5.1%.

Q1FY27 Financial Performance

The Board of Directors approved the unaudited financial results for the quarter ended June 30, 2026. The following table summarises the key financial metrics:

Particulars (₹ Crore)	Q1FY27	Q4FY26	QoQ %	Q1FY26	YoY %
Operating Income	136.13	105.65	29%	67.50	102%
Net Interest Income	82.06	62.73	31%	42.69	92%
Profit Before Tax	71.60	56.21	27%	33.85	111%
Profit After Tax	53.68	42.27	27%	24.52	119%
Loan Book	4,552	3,936	16%	2,504	82%

The company reported a net profit margin of 39.44% for the quarter. Interest income for the quarter stood at ₹128.9 crore, while finance costs were recorded at ₹54.1 crore. The loan book reached an all-time high of ₹4,552 crore, registering a quarter-on-quarter growth of 16% and year-on-year growth of 82%.

Management Guidance and Growth Targets

Following the quarterly results, management shared detailed guidance during the concall. The company has clear visibility to achieve a PBT of around INR 300 crores for FY27, representing approximately 75% year-on-year growth, which would translate to around INR 225 crores PAT. On the returns front, management aims to maintain a Return on Assets of around 5% and expand Return on Equity from 14% to 16% by transitioning from a 2x to 3x leverage, without needing to raise additional equity up to INR 10,000 crores AUM.

The company has outlined the following medium- to long-term targets:

Parameter	Target
AUM Target — FY27	INR 5,500 crores
AUM Target — FY30	INR 10,000 crores
Long-term AUM CAGR	25% to 30%
Long-term Profitability CAGR	30% to 35% (over 3–4 years)
Cost-to-Income Ratio	Below 15%
OpEx	1% of average book
Asset Quality	NIL NPAs

On new product initiatives, the company has commercialized Factoring and TReDS solutions as of March/April, with future plans including digital lending, loan against property, and an insurance broking subsidiary. The insurance broking subsidiary is described as fee-based and B2B in nature, expected to be launched in 2–3 quarters.

Strategic Approvals and Governance Updates

During the board meeting, directors granted in-principle approval for evaluating the acquisition of a 51% stake in Succesship Technologies Private Limited, with a maximum investment of ₹20 crore. Additionally, the Board approved exploring the establishment of a wholly owned subsidiary in GIFT City as a Finance Company, subject to regulatory and viability assessments.

The Board approved the fixation of tenure for Mr. Abhishek Mahajan, Chief Risk Officer, for a period of five years effective July 14, 2026. In governance changes, the Board noted the resignation of Mr. Kush Mishra as Company Secretary & Compliance Officer effective July 18, 2026, and appointed Mr. Ankit Sharma as Company Secretary and Compliance Officer effective July 19, 2026.

Auditor and Regulatory Disclosures

The financial results were subjected to a limited review by M/s S. P. Chopra & Co., Chartered Accountants, the Statutory Auditors of the company. The Independent Auditor's Limited Review Report confirmed that the results are free from material misstatement and prepared in accordance with applicable Ind AS and RBI guidelines. The company also disclosed that it had fully repaid Secured Redeemable Non-Convertible Debentures amounting to ₹5,000 lakhs during the quarter.