1. At a Glance – Blink and You’ll Miss the Transformation
Once upon a time, SG Finserve Ltd was called Moongipa Securities — a sleepy capital-markets relic doing broking, research, and other things that sound exciting but pay badly. Fast-forward to FY26, and suddenly this thing is running a ₹3,210 Cr loan book, charging 10–13%, reporting zero Gross NPAs, and pretending the past never happened.
Market cap sits around ₹2,089 Cr, CMP at ₹376, P/E ~19x, and price-to-book ~1.96x. Quarterly revenue grew 103% YoY, while Q3 PAT clocked ₹32.4 Cr, up 37% YoY. Not bad for a company that literally restarted operations in September 2022.
ROE is still a modest ~9%, ROCE ~6.8%, and debt-to-equity stands at 1.72x — meaning leverage is doing most of the heavy lifting. Promoters hold 50.3%, pledge is zero, and the Gupta brothers of APL Apollo fame are firmly in control.
This isn’t a dividend stock. This is a “let’s build scale first, optics later” NBFC. Curious yet?
2. Introduction – From Broking Graveyard to Supply-Chain Hustle
SG Finserve’s story is not linear — it’s a hard pivot. The company ceased almost all legacy operations, wiped the slate clean, changed its name in November 2022, and restarted as a supply-chain financing NBFC on September 1, 2022.
Instead of chasing retail borrowers or flashy fintech apps, SGF chose the unsexy but profitable lane: financing dealers, distributors, retailers, and buyers of large Indian corporates. Think inventory, receivables, and working capital — not weddings or iPhones.
The interest rates are boring (10–13%), but the security is not:
👉 ~80% of the book is backed by charge on inventory and receivables.
👉 Anchors include APL Apollo, Hindustan Zinc, JSPL, Vedanta, Kajaria, and others.
In short, SG Finserve doesn’t trust vibes. It trusts steel pipes, zinc cathodes, and invoices.
But here’s the
catch — the entire operating history that matters is barely 3 years old. Everything before FY23 is basically financial archaeology. So the big question is: Is this scale durable, or just leverage dressed well?
3. Business Model – WTF Do They Even Do?
Let’s explain this like you’re smart but impatient.
SG Finserve is a B2B supply-chain financier.
It lends money to channel partners of large corporates so they can buy goods, stock inventory, and sell onward without choking on working capital.
How it works (simplified):
- Anchor company sells goods (steel, wires, pipes, etc.).
- Dealer needs money to buy.
- SG Finserve funds the purchase.
- Inventory + receivables are charged to SGF.
- Dealer sells, pays back SGF.
- SGF earns interest, sleeps peacefully.
No fancy consumer apps. No BNPL nonsense. No influencer loans.
Just invoices, stock, and cash cycles.
As of FY24:
- 35 anchor partners
- 500+ borrowers
- Active in 14 states
- ₹22,600+ Cr of purchases funded historically
This is old-school NBFC lending with new-age discipline. The margins are high because operating costs are low — but don’t confuse margin with moat. This is still a competitive business.
4. Financials Overview – Numbers Don’t Lie, But They Do Flirt
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 86 | 42 | 75 | 103% | 15% |
| Financing Profit | 43 | 32 | 39 | 34% | 10% |
| PAT | 32 | 24 | 28 | 37% | 14% |
| EPS (₹) | 5.81 | 4.24 | 5.08 | 37% | 14% |
One Response
Blog does not covers reducing guidance on AUM