SG Finserve Limited has received a CRISIL AA-/Stable rating for its long-term bank facilities and CRISIL A1+ for short-term facilities. With an AUM of Rs 4,552 crore and a net worth of Rs 1,539 crore as of June 2026, the company continues to benefit from strong strategic support from the APL Apollo Group. The firm reported a Q1 FY2027 profit of Rs 54 crore with nil 90+ days past due delinquencies, highlighting a robust initial asset quality as it expands its lending portfolio.
SG Finserve Secures CRISIL AA- Rating With Stable Outlook
SG Finserve Limited has been assigned a CRISIL AA-/Stable long-term credit rating and a CRISIL A1+ short-term rating. The company reported an AUM of Rs 4,552 crore and a net worth of Rs 1,539 crore as of June 30, 2026.
Reader Takeaway: Strong parent support bolsters the rating, though reliance on APL Apollo Group's credit profile remains a key sensitivity.
What just happened
CRISIL Ratings has issued a fresh rating rationale for SG Finserve Limited, covering Rs 800 crore in long-term bank loan facilities. The 'Stable' outlook reflects the agency's confidence in the firm’s business model and its integration within the APL Apollo Group ecosystem.
Why this matters
Credit ratings are critical for NBFCs like SG Finserve as they directly influence borrowing costs. An AA- rating suggests a high degree of safety regarding the timely servicing of financial obligations. For investors, the nil delinquency rate (90+ dpd) as of June 2026 provides comfort regarding current asset quality.
Business Model and Group Support
SG Finserve functions primarily as a channel financier for APL Apollo Tubes dealers. The rating incorporates an expectation of strong support from the APL Apollo Group, which views the company as strategically significant. This synergy allows the firm to leverage group-level data to mitigate credit risks during its ongoing expansion into external lending.
Risks to watch
Growth management is the primary challenge. As SG Finserve expands its loan book beyond the existing dealer network, it must prove it can maintain these low delinquency rates. Additionally, the company is highly sensitive to the financial health and strategic stance of the APL Apollo Group; any shift in promoter support could impact future credit ratings.
Context Metrics (As of June 30, 2026)
- Assets Under Management: Rs 4,552 crore
- Net Worth: Rs 1,539 crore
- Q1 FY2027 PAT: Rs 54 crore
- Liquidity: Rs 152 crore in cash and liquid equivalents
- Gearing Ratio: 2.2 times