Press Release-Q1FY26
SGFIN · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
SG Finserve, an NBFC focused on MSME supply chain financing, reported Q1FY26 PAT of INR 24.52 crore, up 3% quarter-on-quarter and 26% year-on-year. Operating income rose 25% QoQ to INR 67.59 crore and 55% YoY, supported by 86% YoY AUM growth to INR 2,630 crore. Net Interest Income grew 20% QoQ to INR 42.79 crore, though interest expenses doubled YoY, indicating margin pressure. The company maintained zero gross NPAs and targets AUM of INR 4,000 crore in FY26 and INR 6,000 crore in FY27, backed by MOUs with anchors worth INR 6,400 crore. It also has secured equity commitments of INR 450 crore via share warrants (INR 338 crore pending by April'26) and is considering raising bank lines of INR 4,500 crore for FY27 growth.
The strong AUM growth and clean asset quality (zero NPAs) are positives, but the sharp rise in interest expenses (102% YoY) versus income growth (55% YoY) signals funding cost pressure that could weigh on near-term profitability. The aggressive growth targets and INR 6,400 crore anchor pipeline support the long-term growth story, though execution and margin trajectory will be key for shareholders to watch.