SG Finserv Reports 15% Loan Book Growth Amid Leadership Transition and Revised Guidance

SG Finserv Limited, a key player in MSME supply chain financing, has reported a 15% quarter-on-quarter growth in its loan book, reaching INR 2,878.00 crores. This growth has led to a 14% increase in Profit Before Tax (PBT) and a 16% rise in net profit for the quarter.

Financial Performance and Outlook

The company has maintained its zero Non-Performing Assets (NPAs) status after disbursing INR 52,000.00 crores since its inception 36 months ago. However, SG Finserv has revised its Profit After Tax (PAT) guidance downward from INR 150.00 crores to INR 120.00-125.00 crores, citing macroeconomic slowdown affecting customer businesses.

Despite the revised guidance, the management expects a 10% quarter-on-quarter earnings growth going forward. The company aims to achieve an exit loan book of around INR 3,500.00 crores, with a target to reach INR 6,000.00 crores.

Leadership Transition

SG Finserv announced significant changes in its top management:

CEO Sorabh Dhawan and CFO/COO Sahil Sikka have resigned to pursue new opportunities.
Vinay Gupta, a chartered accountant with over 20 years of banking experience, will join as the new CEO in November.
Sanjay Rajput, currently Head of Finance and Accounts, will take over as CFO.

The company assures a smooth transition, with the outgoing executives staying on for 40-50 days to facilitate the handover process.

Business Strategy and Expansion

SG Finserv continues to focus on supply chain financing, serving over 1,000 MSMEs with anchor partnerships including Tata Motors, Mahindra & Mahindra, and Tata Steel. The company is exploring expansion into retailer financing under its existing distributor networks, which is expected to improve Net Interest Margins (NIMs) by 50 to 100 basis points.

Sector-wise Exposure

The company's loan book is diversified across three main sectors:

Sector	Exposure	Partnerships
Building materials	50-60%	Saint-Gobain
Automobile segment	~20%	Tata Motors, Mahindra & Mahindra
IT and peripherals	~20%	OPPO, Redington, Ingram

Future Outlook

Despite the short-term challenges, SG Finserv remains optimistic about its long-term prospects. The company is targeting a Return on Equity (ROE) of above 15% as a first milestone, with plans to eventually reach 18-19%. This will be achieved through increased leverage and expansion into higher-yield segments like retailer financing.

As the company navigates through this transition period, it remains committed to maintaining its asset quality and prudent risk management practices while pursuing growth opportunities in the evolving supply chain finance landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.40%	-0.95%	-0.35%	+1.03%	+1.03%	+1.03%

SG Finserv , a leading tech-enabled Non-Banking Financial Company (NBFC), has reported robust financial results for the second quarter of fiscal year 2026, alongside significant changes in its leadership team.

Financial Highlights

SG Finserv demonstrated impressive growth in Q2 FY26:

Operating Income reached ₹74.72 crore, up 11% from ₹67.59 crore in Q1 FY26.
Net Interest Income (NII) increased to ₹44.39 crore from ₹42.79 crore in the previous quarter.
Profit After Tax (PAT) surged to ₹28.40 crore, marking a 16% increase from ₹24.52 crore in Q1 FY26.

The company's loan book expanded significantly, reaching ₹2,878.00 crore at the end of Q2 FY26, a 15% increase from ₹2,504.00 crore in Q1 FY26.

Half-Yearly Performance

For the first half of FY26, SG Finserv reported even more substantial year-on-year growth:

Operating Income rose by 91% to ₹142.31 crore, compared to ₹74.43 crore in H1 FY25.
PAT increased by 58% to ₹52.92 crore from ₹33.51 crore in the same period last year.
The loan book saw a remarkable 250% growth, reaching ₹2,878.00 crore from ₹822.00 crore in H1 FY25.

Key Financial Metrics

As of September 30, 2025:

Metric	Value
Net Worth	₹1,071.18 crore
Debt-to-Equity ratio	1.77
Net Profit Margin	37.87%
Capital to Risk-Weighted Assets Ratio	36.65%

Leadership Changes

The company announced several key changes to its leadership team:

Mr. Vinay Gupta will join as the new Chief Executive Officer, replacing Mr. Sorabh Dhawan.
Mr. Sanjay Rajput will be elevated to Chief Financial Officer, succeeding Mr. Sahil Sikka.
Mr. Kush Mishra has been appointed as Company Secretary and Compliance Officer.
Mr. Saurabh Mishra will join as Head of Internal Audit.

Strategic Focus

SG Finserv continues to emphasize its growth in supply chain financing and working capital solutions for MSMEs. The company has expanded its partnerships with major corporates, including Tata Group, AMNS India, and Vedanta, among others.

Future Outlook

With a strong financial performance and strategic leadership changes, SG Finserv is positioning itself for continued growth. The company aims to achieve a target loan book of ₹6,000.00 crore by FY27, supported by secured equity commitments and potential banking limit increases.

SG Finserv's focus on digital transformation, including the development of AI-driven monitoring tools and a new customer mobile app, underscores its commitment to leveraging technology for business growth and customer service enhancement.

As the company continues to expand its presence across India and strengthen its position in the NBFC sector, investors and industry observers will be watching closely to see how these strategic moves translate into long-term value creation.