SG Finserve (SGFL), a rapidly growing RBI-registered NBFC specializing in MSME supply-chain financing, has reported another strong quarter of growth with solid gains in profitability and scale. SG Finserve Q2 FY26 performance highlights its accelerating business momentum, disciplined execution, and technology-driven lending model.
SG Finserve Q2 FY26 Performance: Uptrend in Income and Profitability
SG Finserve Q2 FY26 results reported a Profit After Tax (PAT) of INR 28.40 crore for Q2 FY26, marking a 16% QoQ increase over INR 24.52 crore in Q1 FY26. For the first half (H1 FY26), PAT stood at INR 52.92 crore, up 58% YoY from INR 33.51 crore in H1 FY25.
Operating income rose to INR 74.72 crore in Q2 FY26 (+11% QoQ) and INR 142.31 crore in H1 FY26 (+91% YoY). Net Interest Income (NII) climbed 4% quarter-on-quarter to INR 44.39 crore, reflecting a healthy lending spread.
The company maintained zero gross NPAs, underscoring strong asset quality despite rapid portfolio expansion. Return on Assets (ROA) stood at 4.5% (annualized) and Return on Equity (ROE) at 10.7% (annualized) for the quarter.
Loan Book Growth: Rapid Expansion and Diversification
SG Finserve’s loan book continues its steep trajectory. The closing loan book stood at INR 2,878 crore as of 30 September 2025, up 15% QoQ and a striking 250% YoY (from INR 822 crore a year earlier). The average loan book reached INR 2,526 crore (Q2) and INR 2,386 crore (H1), indicating broad-based growth across clients and sectors.
Disbursements for SG Finserve H1 FY26 totaled INR 11,130 crore versus INR 8,022 crore in H1 FY25 (+39% YoY), fueled by rising demand from MSME clients and partnerships with marquee corporate anchors.
Notably, 87% of the portfolio is secured, backed by funded inventory and receivables, with “stop-supply” arrangements providing additional credit protection.
Strategic Developments and Financial Strength
SG Finserve is reinforcing its balance-sheet strength to sustain growth:
- The company has secured equity commitments of INR 450 crore through share warrants, of which INR 112 crore was received in October 2024. The balance INR 338 crore is expected by April 2026.
- Banking limits sanctioned by banks and FIs rose to INR 1,961 crore as of September 2025 (from INR 1,766 crore in June), with plans to raise aggregate limits to INR 4,500 crore by FY27.
- The company holds AA (CE) / A1+ credit ratings from CRISIL and ICRA, underscoring confidence in its financial prudence.
SG Finserve is targeting a loan book (AUM) of INR 6,000 crore by FY27, nearly doubling its current scale.
Technology & Digital Focus: Strengthening the Supply-Chain Finance Platform
A cornerstone of SG Finserve’s strategy is its digital lending ecosystem, designed for MSMEs and supply-chain participants:
- The company’s proprietary scoring and credit-rating model enables real-time borrower assessments tailored to each anchor’s profile.
- An AI-driven credit-monitoring tool, scheduled for launch by December 2025, will enhance risk tracking and loan performance management.
- SG Finserve recently launched its Android customer mobile app, providing clients real-time access to loan data, transaction history, and service requests.
Strategic Partnerships and Anchor Relationships
SG Finserve continues to deepen its partnerships with industry leaders such as Tata Group, JSW-MG Motors, Vedanta, APL Apollo, Ashok Leyland, Adani Group, Jindal Steel, Bajaj Electricals, and Oppo.
It has MOUs with anchors aggregating INR 6,550 crore (up INR 1,050 crore in H1 FY26), providing a strong pipeline for growth in FY27. The company focuses on expanding within existing large anchors while onboarding new corporates.
Geographical Presence and Reach
SG Finserve operates across 25 locations in India, spanning major metros and industrial hubs — including Delhi NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Jaipur, and Pune.
The loan book distribution remains well-balanced regionally:
North 41% | West 28% | South 26% | East 5%, ensuring diversification and resilience.
Leadership and Governance: Experienced Board and Management
SG Finserve’s governance is guided by a board of seasoned banking veterans, including:
- Smt. Asha Anil Aggarwal, Ex-Chief Principal Commissioner, Income Tax Dept.
- Shri Hsu Kamath, Ex-CMD Vijaya Bank & ED Canara Bank.
- Shri G. Jaganmohan Rao, Ex-Principal CGM, RBI.
- Shri Dukhabandhu Rath and Shri Rakesh Sharma, both Ex-CGMs of State Bank of India.
The executive leadership — CEO Sorabh Dhawan and COO & CFO Sahil Sikka — bring nearly two decades each of corporate-banking experience from institutions such as HDFC, Kotak, and Aditya Birla Finance.
High-Profile Shareholders Signal Confidence
SG Finserve has attracted high-conviction investors known for their successful stock-picking track records:
- Madhusudan Kela holds 9,51,773 shares (1.70% stake) valued at ~INR 38.2 crore.
- Ashish Kacholia owns 6,38,366 shares (1.14% stake) valued at ~INR 25.2 crore.
Their involvement underscores the market’s confidence in SG Finserve’s growth trajectory and management quality.
Outlook
With a robust capital base, marquee partnerships, and a digital-first approach, SG Finserve is well-positioned to ride India’s MSME-financing wave. The company’s combination of technology, credit discipline, and experienced leadership provides a strong foundation for sustainable growth.
As India’s supply-chain financing landscape matures, SG Finserve’s focus on inclusivity, efficiency, and scalability could make it one of the key NBFCs to watch in FY26–FY27.
Bottom Line: SG Finserve Q2 FY26 results highlight an agile and well-managed NBFC that is scaling rapidly yet prudently. With high-profile investors on board and an expanding nationwide footprint, the company’s trajectory reflects the evolving story of India’s digital MSME lending revolution.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.