Any current/future new fundraising through debt or equity?

**Equity Fundraising:** - INR 338 crores additional equity expected by April 2026 via share warrants. - Total equity base expected to be around INR 1,450 - 1,500 crores beginning the new financial year. - Fundraising through share warrants is planned, with April as the due timeline, possibly earlier to strengthen the balance sheet by March 31, 2026. - No immediate plans to invest in new subsidiaries; any investment will happen after shareholder and board approvals. **Debt Fundraising:** - Borrowing plans approved for INR 5,000 crores. - Currently dealing with 18 banks and 2 mutual

Any current/future capex/capital investment/strategic investment?

Board has approved ideation for four new subsidiaries in ARC (Asset Reconstruction Company), AIF (Alternative Investment Fund), Insurance Broking, and FinTech businesses, but these are at a "drawing board" stage with no current business plan or investment. No immediate capital investment planned; no decision to put even $1 into these subsidiaries in the next 2-3 years. Expansion plans involving around INR 400 crores and approx. 30% equity for new verticals are just broad-based vision; no actual fund deployment or hiring planned currently. Share warrants pending for subsidiaries funding are exp

Future growth expectations in earnings/operating earnings/profits/EPS?

SG Finserve targets a loan book growth to INR 7,500 crores by FY 2030, implying a 20% CAGR from March 2026 to March 2030. Profit Before Tax (PBT) is projected to grow at a 30% CAGR over the same period, aiming for INR 500 crores in FY30. This translates into a targeted return on assets (ROA) of around 5% and return on equity (ROE) of approximately 15% by FY30. The company expects linear loan book additions of around INR 1,000 crores per year post FY26. Emphasis on zero NPA growth to ensure asset quality. New verticals (ARC, AIF, insurance broking, fintech) are at ideation stages; no significan

Current/ Expected Orderbook/ Pending Orders?

The current average loan book (AUM) for Q3 is approximately INR 2,925 crores. The company aims to grow the loan book to around INR 3,500 crores by March 2026. Guidance is to add about INR 1,000 crores to the AUM each year, targeting INR 4,500 crores by March 2027, reaching INR 7,500 crores by FY 2030. The aggregate Memorandum of Understanding (MOU) signed with anchors is more than INR 7,000 crores. Actual AUM will be lower than MOU due to a multi-stage process of limits approval and utilization. The MOU conversion to AUM typically takes about one year to reach meaningful stages, with additiona

Future growth expectations in sales/revenue/volumes?

SG Finserve targets a loan book growth to INR 7,500 crores by March 2030, representing a 20% CAGR from current levels. Annual loan book additions are planned at approximately INR 1,000 crores per year for the next several years. The company aims to maintain zero NPAs while growing, emphasizing disciplined growth rather than aggressive expansion. For FY '26, the loan book is expected to be around INR 3,500 crores, with a target of INR 4,500 crores by March 2027 (about 33% growth). Growth targets are conservative to allow the new management team to settle and build confidence before acce

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SG Finserve LtdQ4 FY27Finance

SG Finserve Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹586P/E: 29.9Market Cap: ₹3.8K CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Capex

1 of 5 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→SG Finserve targets a loan book growth to INR 7,500 crores by March 2030, representing a 20% CAGR from current levels.
→Annual loan book additions are planned at approximately INR 1,000 crores per year for the next several years.
→The company aims to maintain zero NPAs while growing, emphasizing disciplined growth rather than aggressive expansion.
→For FY '26, the loan book is expected to be around INR 3,500 crores, with a target of INR 4,500 crores by March 2027 (about 33% growth).
→Growth targets are conservative to allow the new management team to settle and build confidence before accelerating growth.
→Expansion into new business verticals (ARC, AIF, insurance broking, fintech) is at ideation stage, with no immediate investment or significant revenue expected in the next 2-3 years.
→Supply chain finance remains the core focus area, expected to drive the majority of growth through deepened relationships and new anchors.

Margin guidance

Category 3

→SG Finserve targets a loan book growth to INR 7,500 crores by FY 2030, implying a 20% CAGR from March 2026 to March 2030.
→Profit Before Tax (PBT) is projected to grow at a 30% CAGR over the same period, aiming for INR 500 crores in FY30.
→This translates into a targeted return on assets (ROA) of around 5% and return on equity (ROE) of approximately 15% by FY30.
→The company expects linear loan book additions of around INR 1,000 crores per year post FY26.
→Emphasis on zero NPA growth to ensure asset quality.
→New verticals (ARC, AIF, insurance broking, fintech) are at ideation stages; no significant impact on near-term profits expected.
→The strategy prioritizes sustainable, steady growth with prudent capital leverage (2x-3x) and maintaining margins by managing funding costs and credit risk.

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Fundraise plans

Yes

→**Equity Fundraising:**
→ - INR 338 crores additional equity expected by April 2026 via share warrants.
→ - Total equity base expected to be around INR 1,450 - 1,500 crores beginning the new financial year.
→ - Fundraising through share warrants is planned, with April as the due timeline, possibly earlier to strengthen the balance sheet by March 31, 2026.
→ - No immediate plans to invest in new subsidiaries; any investment will happen after shareholder and board approvals.
→**Debt Fundraising:**
→ - Borrowing plans approved for INR 5,000 crores.
→ - Currently dealing with 18 banks and 2 mutual funds for borrowing.
→ - Leverage currently at 2x with plans to grow to 2.5x or 3x conservatively for balance sheet expansion.
→ - Aim to maintain conservative leverage and strong capitalization to ensure growth with zero NPAs.

Order book

→The current average loan book (AUM) for Q3 is approximately INR 2,925 crores.
→The company aims to grow the loan book to around INR 3,500 crores by March 2026.
→Guidance is to add about INR 1,000 crores to the AUM each year, targeting INR 4,500 crores by March 2027, reaching INR 7,500 crores by FY 2030.
→The aggregate Memorandum of Understanding (MOU) signed with anchors is more than INR 7,000 crores.
→Actual AUM will be lower than MOU due to a multi-stage process of limits approval and utilization.
→The MOU conversion to AUM typically takes about one year to reach meaningful stages, with additional natural growth thereafter.
→The company plans to reach INR 10,000 crores loan book by 2030 through existing and new anchors.

Capex plans

→Board has approved ideation for four new subsidiaries in ARC (Asset Reconstruction Company), AIF (Alternative Investment Fund), Insurance Broking, and FinTech businesses, but these are at a "drawing board" stage with no current business plan or investment.
→No immediate capital investment planned; no decision to put even $1 into these subsidiaries in the next 2-3 years.
→Expansion plans involving around INR 400 crores and approx. 30% equity for new verticals are just broad-based vision; no actual fund deployment or hiring planned currently.
→Share warrants pending for subsidiaries funding are expected by April 2026 but might come earlier to strengthen the balance sheet.
→The focus remains on growing the core supply chain lending business with a 20% CAGR target and zero NPAs.
→The company aims to stay conservatively leveraged (2x to 3x) and is capitalized to grow efficiently without over-leveraging or risky investments.

How does SG Finserve Ltd rank vs peers in Finance?

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1SG Finserve Ltd

Rev 2Mar 3

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