SG Finserve Ltd (SGFIN) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Q2 FY27 earnings conference call of SG Finserve, hosted by Elara Securities India Private Limited. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your
Moderator: tone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Maneesh Khimawat from Elara Securities. Thank you and over to you, sir.
Maneesh Khimawat (Elara Securities): Thank you. Good evening, everyone. We welcome you to the earnings conference call of SG Finserve to discuss the Q2 FY '27 performance of the company. I would now like to hand over the call to Mr. Vinay Gupta, CEO, for his opening remarks. Over to you, sir.
Vinay Gupta (SG Finserve Ltd): Thank you team Elara for hosting us today. Jai Hind everyone and a very good evening. My name is Vinay Gupta, CEO of your NBFC SG Finserve Limited. I have my senior colleagues Anubhav, our Group Chief Strategy Officer, Sanjay, our CFO, Lalit, our CRO, Abhishek, and Vivek, and the senior members of the team here. We have completed four years of our operations. In this four years, we have generated profits of around ₹560 crore, of which we have paid ₹145 crore in taxes, around ₹415 crore we have accumulated as part of our equity basis. We're happy to share that first half of FY '27 have been encouraging on all the efforts. We have achieved all-time high quarterly PAT of 59 crore in Q2. Our loan book is also at all-time high of high of around 5,700 crore. The PBT for H1 was 150 crore, which has doubled, if we were to compare it from the corresponding H1 of the previous year. We have been successful in implementing our widening and deepening strategy which we have taken on ourselves at the beginning of the financial year. We have added more anchors, more borrowers and more business partnerships. We have scaled our existing product shoot also. Apart from dealer financing and deep tier financing, we have started doing factoring and TReDS. We have commercialized digital lending and loan against property also during the quarter. We continue to be a supply chain focused NBFC, supply chain contributing to more than 70% of our AUM today. This is despite reduction in our dependence on the group, the group contribution to our book has come down to 25% now. Currently, we are powering the ecosystem of more than 60 brands in the country providing them supply chain financing solutions. We continue to leverage our digital infrastructure and disbursed loans of more than 16,000 crore in H1, which means 32,000 crore on an annualized basis is the kind of disbursement we are doing, which translates to more less than two months of our pay payback cycle for our loan book. This volume, if we were to compare year-on-year basis, has gone up by 46%. We have also achieved all our key operating parameters maintaining nil NPA, return on asset is more than 4.5%, and cost-to-income continued to remain less than 15%. And we plan to maintain this in quarters to come, as well. Over the last 1 year, our asset-to-equity leverage has improved from 2.8x to 3.7x and during the same time, our run rate on quarterly basis return on equity has moved up from 10% to 15%. To augment business growth, we have almost doubled our team strength in last 1 year. Today, we have a strong team of more than 100 people. However, we continue to maintain high productivity. On annualized basis, our per-employee PAT is more than ₹2 crore. We have exited the quarter with net worth of approximately ₹1,600 crore, which provides us ample headroom to augment our growth in coming quarters. Given our improved profitability, operations and a healthy capital structure and a strong parenting, CRISIL has upgraded our rating. Currently, we stand at AA- on a long term and A1+ on a short-term basis. At SG Finserve, we always believed that sustainable growth matters more than the headline growth, and our focus is continued to build business that is scalable, profitable and it maintains a strong credit quality. Today SG Finserve is among 1% NBFCs in the country who are providing supply chain financing or factoring or trades or digital lending products. With that, I would like to hand over call back to our host.
Moderator: Sir, shall we begin with the Q&A?
Vinay Gupta (SG Finserve Ltd): Sure.
Moderator: Okay. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use headsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aryan Doshi from Divitiya Investments. Please go ahead.
Aryan Doshi (Divitiya Investments): Yeah. Can you hear me?
Vinay Gupta (SG Finserve Ltd): Yes Aryan, go ahead.
Aryan Doshi (Divitiya Investments): Yeah. Congratulations on a great set of results and thanks for op-
Aryan Doshi (Divitiya Investments): My question was on leverage. Your borrowings are now, you know, close to three times net worth, right, 2.7 times. What is the ceiling you have set for yourself, and you have been saying you don't need to raise equity until the book reaches 10,000 crores. So just to ask you directly, are you looking for an equity raise this financial year?
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