SG Finserve Q2 Results: Profit Increases 106% YoY to ₹58.5 Crore, Loan Book Jumps 98% to ₹5,694 Crore
Often, when a factory sends goods to a dealer or a vendor sends goods to a big corporation, the payment is not made for weeks or months. That gap has always pinched small and mid-sized suppliers that need cash to buy raw material and pay wages. Supply chain finance is there to close it and the lenders that do it well can grow fast while keeping risk low because the money is tied to real trade with known buyers.
The Nifty 50 traded at 23.088.85, up 0.40%, while the Sensex rose 0.34 to 74,571.19 on Friday. Meanwhile, Shares of SG Finserve were trading at Rs. 654.00, down 5.80% from previous close of Rs. 694.25. The stock opened at Rs. 699.65 and reached an intraday high of Rs. 712.00 and low of Rs. 610.00. The company currently has a market capitalization of Rs. 4,199 crores.
What's the News
SG Finserve announced its Q2 FY27 results, posting a consolidated PAT of Rs. It rose 106 per cent from a year ago and 9 per cent from the previous quarter to 58.53 crore. The first half profit was Rs. 112.20 crore, up 112%, while the loan book rose 98% to Rs. 5,694 crore. The asset quality remained good with NPAs of zero, cost-to-income ratio was kept under 15% and RoE was recorded at 14.7%.
Two board decisions in July add to the story. The board approved the studies to acquire a 51% stake in Succesship Technologies at a maximum price of Rs. 20 crore, and to delve into the idea of a wholly owned finance subsidiary in GIFT City, which both will be subjected to due diligence and viability checks. Succesship also provides the digital lending solution that was launched with BharatPe Money as a Lending Service Provider, and therefore, the stake would further strengthen their drive.
Financial & Business Analysis
Looking at the quarterly results of SG Finserve Ltd., the company’s consolidated revenue from operations increased by 115.58 percent YoY, from Rs. 74.66 crore in Q2 FY26 to Rs. 160.93 crore in Q2 FY27, and increased by 18.24 percent QoQ from Rs. 136.10 crore in Q1 FY27.
In Q2 FY27 SG Finserve Ltd., consolidated net profit increased by 107.15%, reaching Rs. 58.80 crore compared to Rs. 28.39 crore during the same period last year. As compared to Q1 FY27, the net profit increased by 9.56 percent, from Rs. 53.67 crore. The basic earnings per share stood at Rs. 8.97 as against Rs. 5.08 recorded in the same quarter in the previous year, FY2026.
The core of the business is supply chain finance, which still makes up about two-thirds of the loan book. The company has been building out factoring and TReDS, and has now taken its Loan Against Property and digital lending products to market. Because it lends against invoices from large anchor corporations, it can reach many smaller suppliers without taking on much extra risk per borrower.
NBFCs do not report an order book the way manufacturers do, so the better gauge is the anchor and borrower pipeline. Over 80% of the loan book growth came from new customers, and about 75% of the book now sits outside the APL Apollo group's own ecosystem. That lowers dependence on the parent. The company added 14 new anchor corporations and around 275 new borrowers in the half, and each anchor can bring in dozens of vendors and dealers over time. The team has crossed 100 people and the network now covers 34 locations, which suggests the model can scale without costs running ahead of income.
Industry Context
India's receivables financing market is growing quickly. The TReDS ecosystem now facilitates invoice financing of over Rs. 4 lakh crore annually, and the number of financiers has grown from 13 in FY18 to 78. Active buyers have grown from 26 to over 13,000 in FY26. One platform, M1xchange, became the first to cross Rs. 1 lakh crore in annual throughput in a single financial year (FY25-26).
The need behind this growth is large. An EY report puts the MSME credit gap at $530 billion, with only about 14% of 64 million MSMEs having access to formal credit. Smaller cities are also joining in, as 71% of MSMEs on the M1xchange platform come from Tier II and smaller centres and contribute 67% of its throughput. Policy support, including credit guarantees for invoice discounting and the integration of GeM with TReDS, adds to the momentum for lenders like SG Finserve.
Company Overview
SG Finserve is a non-banking finance company and part of APL Apollo group, whose flagship company APL Apollo Tubes is the largest manufacturer of structured steel in India. It provides vendor finance, deep tier financing, factoring and TReDS, dealer and distributor finance, invoice financing, purchase order finance, digital lending, Loan Against Property and capex funding. The company is rated CRISIL AA-/Stable/A1+ and is among the select 1% of Indian NBFCs offering supply chain finance, factoring or TReDS. It has guided for growth of 25-30% in AUM, growth of 30-35% in profits, RoA of 4.5%+, RoE of 15%+ & zero NPAs.