SG Finserve Q2 FY27 Earnings Call Transcript Released

SG Finserve Limited has released the transcript of its Q2 FY27 earnings conference call, which was held on October 16, 2026. The call featured insights from CEO Vinay Gupta, Group Chief Strategy Officer Anubhav Gupta, and CFO Sanjay Rajput.

During the call, the company highlighted strong performance in the first half of FY27, achieving an all-time high quarterly Profit After Tax (PAT) of ₹59 crores in Q2. The loan book reached an all-time high of approximately ₹5,700 crores. Profit Before Tax (PBT) for H1 FY27 was ₹150 crores, doubling compared to the previous year's H1. The company has successfully implemented its business strategy, expanding its product offerings to include Factoring and TReDS, and commercializing digital lending and loan against property.

Supply chain financing continues to be a core focus, contributing around 70% of the Assets Under Management (AUM). The company has reduced its dependency on the group's ecosystem to 25%. Digital infrastructure has enabled disbursements of over ₹16,000 crores in H1 FY27, an annualized volume of ₹32,000 crores, representing a 46% year-on-year increase. Key operating parameters were maintained, including nil NPA, Return on Assets (ROA) above 4.5%, and a cost-to-income ratio below 15%. The asset-to-equity leverage improved from 2.8x to 3.7x over the past year, with a quarterly Return on Equity (ROE) moving up to 15% in Q2 FY27. The team strength has doubled to over 100 people, maintaining a per-employee PAT of over ₹2 crores.

CRISIL has rated the company AA- long-term and A1+ short-term. In response to investor queries, the company revised its leverage target from a debt-to-equity of 3x to 4x to support business growth. The company is also exploring setting up a finance company in GIFT City for overseas supply chain financing, which is expected to be operational in about a year after regulatory approvals. Furthermore, SG Finserve is investing in an in-house AI digital stack for data security and dependency reduction.

The company reiterated its guidance of 30%-35% CAGR for AUM and 35%-40% CAGR for profitability. The ROA is maintained at approximately 5%. The company clarified that credit cost increases are primarily due to regulatory provisioning requirements under IRAC and ECL norms, not due to specific segment stress or cash credit costs. The company also provided an update on its plans for an Alternative Investment Fund (AIF), which will be a Category III equity-based AIF managed by a wholly-owned subsidiary, serving as a fee-generating avenue.