SG Finserve reported a strong half-year performance with a 112% jump in profit to Rs 112.2 crore and a record loan book of Rs 5,694 crore. The company maintains zero NPAs and is successfully diversifying its portfolio away from the APL Apollo group ecosystem.
SG Finserve Reports Record Growth with Zero NPA Status
Profit After Tax for H1 FY27 reached Rs 112.2 crore, up 112% year-on-year.
Loan book expanded by 98% to hit a record high of Rs 5,694 crore.
Reader Takeaway: Robust portfolio expansion and diversification drive growth, but scaling new product lines like LAP remains crucial.
What just happened
SG Finserve has released its financial results for the quarter and half-year ended September 30, 2026. The company posted a Profit After Tax (PAT) of Rs 58.5 crore for Q2, following a total of Rs 112.2 crore for the first half of the fiscal year. This represents a significant year-on-year growth of 112%. The loan book reached an all-time high of Rs 5,694 crore, a 98% increase compared to the previous year, while the company maintained a NIL NPA status.
Why this matters
The results highlight the company's successful pivot in business strategy. Notably, 75% of the loan book is now derived from outside the APL Apollo Group ecosystem, signaling reduced dependency on promoter-linked entities. Furthermore, over 80% of the recent loan book growth was driven by 275 new borrowers and 14 new anchor corporates added during the half-year.
Strategic Developments
Beyond supply chain finance, SG Finserve has successfully scaled its Factoring and TReDS business lines. The firm has also commercialized Loan Against Property (LAP) and digital lending products. Management has set an ambitious target for FY27, aiming for 25%-30% AUM growth and 30%-35% PAT growth, while maintaining an RoA above 4.5% and an RoE above 15%.
Risks to watch
As the company scales its new product lines—specifically Loan Against Property and digital lending—the primary challenge will be maintaining the current NIL NPA status and strict asset quality. Rapid growth in a competitive lending environment may put pressure on operational efficiency and yield margins.
Context metrics
Capital Adequacy Ratio stands at approximately 27%, providing a solid buffer for future lending activities. The Cost-to-Income ratio is targeted to remain below 15% for FY27.