SG Finserve delivered exceptional financial results for Q1 FY27, with standalone net profit surging 119% year-on-year to ₹53.7 crore, compared with ₹24.5 crore in the corresponding quarter last year. On a sequential basis, net profit increased 27% from ₹42.3 crore reported in Q4 FY26. The company's total income jumped 102% year-on-year to ₹136.2 crore in Q1 FY27, compared with ₹67.4 crore in the year-ago quarter, while profit before tax climbed 111% YoY and 27% QoQ to ₹71.6 crore. Net interest income (NII) rose 92% YoY and 31% QoQ to ₹82.1 crore during the quarter, as reported by Business Standard.
SG Finserve achieved a record loan book of ₹4,552 crore as of June 30, 2026, registering 16% quarter-on-quarter and 82% year-on-year growth. The company reported its highest-ever loan book of ₹3,936 crore as of March 31, 2026, with gross disbursements crossing ₹25,000 crore during the year, reflecting a 40% growth over the previous year. The company maintained operational efficiency with a cost-to-income ratio below 15% and reported nil NPAs. Return on assets (RoA) stood at 5.10% and annualised return on equity (RoE) was 14% for the quarter. The company demonstrated strong business diversification with supply chain financing continuing to be its core business, further strengthened by the commercialisation of its factoring and TReDS business.
The company maintained a strong capital position with total equity of ₹1,539 crore as of June 30, 2026, and a debt-to-tangible net worth ratio of 2.2x, providing sufficient headroom for future growth. Looking ahead, SG Finserve announced it will focus on deepening relationships with existing customers, expanding its customer base, broadening its product portfolio, forging strategic partnerships, and exploring adjacent financial services. The board granted in-principle approval to evaluate the acquisition of a 51% stake in Succesship Technologies with a maximum investment of ₹20 crore, subject to due diligence and independent valuation. Additionally, the board approved exploring the establishment of a finance company in GIFT City as a wholly owned subsidiary.
Prominent investors Ashish Kacholia and Madhusudan Kela have reduced their stakes in SG Finserve during the first quarter of FY27, cashing in on the company's impressive performance. According to reports from The Economic Times, Kacholia's holding dropped below the 1% disclosure threshold from 2.37% at the end of March 2026 quarter, indicating a likely exit from the company. Meanwhile, Madhusudan Kela marginally reduced his holding to 1.44% from 1.46% in the previous quarter. The stake reduction comes after a sharp rally in SG Finserve's shares, which have surged 52% year-to-date, significantly outperforming the broader market. Over the same period, the Nifty and Sensex have declined by more than 7% and 9%, respectively, highlighting SG Finserve's exceptional performance in the current market environment.
