SG Finserve Ltd Q2FY26 – When APL Apollo’s Cousins Turned NBFC Bankers & Started Printing Credit Like Chocolates
1. At a Glance
From broking desks to balance sheets — SG Finserve Ltd (formerly Moongipa Securities) has had more reincarnations than a soap opera character. Today, it’s an NBFC lending engine with a ₹2,143 crore market cap and a ₹1,847 crore loan book. Current price ₹383, P/E 21x, book value ₹192 — neat, clean, and mildly caffeinated.
FY25 PAT stands at ₹100 crore, with interest income contributing 96% of revenues. Quarterly revenue has shot up 142% YoY to ₹75 crore, while PAT doubled to ₹28 crore. Imagine your chacha’s steel empire deciding to open a finance shop — that’s SG Finserve, now run by Rahul and Rohan Gupta, the APL Apollo bros.
But wait — the CEO just resigned (Nov 2025), CFO leaving (Dec 2025), and CRISIL downgraded “positive” outlook to “stable.” So yes, business is booming, but HR is in season finale mode.
2. Introduction
Remember Moongipa Securities? No, of course you don’t. Back in the 2000s, they were dabbling in broking and research before quietly dying of irrelevance. Then in 2022, like a phoenix with a credit license, it came back as SG Finserve Ltd, led by the Guptas of APL Apollo fame.
They took a dusty shell, pumped it with capital, and built an NBFC that lends to distributors, retailers, and supply-chain dealers of India Inc. It’s not your usual consumer-loan circus — it’s channel financing for corporates, the boring but lucrative part of finance.
They claim to have funded ₹22,600+ crore in purchases across 14 states, with zero NPAs. If that’s true, they deserve a Padma Shri for risk management — or a Padma Bhushan for Excel-level storytelling.
But hey, the ambition is real: a hybrid digital lender powering Indian MSMEs through tech, backed by steel money. The result? A company that looks like Bajaj Finance’s introvert cousin — disciplined, data-heavy, and still learning to smile.
3. Business Model – WTF Do They Even Do?
SG Finserve is basically a B2B money machine for India’s supply chain ecosystem. Think of it as the friendly financier for APL Apollo dealers, Kajaria distributors, or Bajaj Electricals’ retailers who need 90-day funding.
They provide short-term working capital loans (10–13% per annum) to partners of big corporates. The magic word here: “Anchor-based Financing” — they tie up with large brands (anchors) and lend to their supply chains using transaction data and receivable flows as security.
Their portfolio is 80% secured — backed by funded inventory and receivables — meaning they lend against goods already sold or soon to be sold. It’s a low-NPA model if executed right, and they claim nil GNPA as of FY24.
Essentially, SG Finserve is what happens when APL Apollo’s steel pipes meet fintech algorithms — a clean, interest-spinning supply chain lender wrapped in NBFC regulation.
4. Financials Overview
Source table
Metric
Latest Qtr (Sep 25)
YoY Qtr
Prev Qtr
YoY %
QoQ %
Revenue
₹74.7 Cr
₹31 Cr
₹68 Cr
+142%
+9.8%
Operating Profit
₹65 Cr
₹29 Cr
₹60 Cr
+124%
+8.3%
PAT
₹28.4 Cr
₹14.1 Cr
₹25 Cr
+101%
+13.6%
EPS (₹)
5.08
2.53
4.39
+101%
+15.7%
Commentary: Revenues are up 142% — and that’s not a typo. PAT doubled, EPS jumped. The loan book expanded 71% YoY to ₹1,673 crore. The only thing that hasn’t expanded is the CEO’s tenure.
Margins are juicy — NIM near 8%, OPM 87%, and net margins 47%. That’s a dream ratio until you remember they’re funding at double-digit rates and the business just restarted two years ago.
P/B Method: Book Value ₹192 × Industry multiple 2.2 = ₹422.
EV/EBITDA: EV/EBITDA (18.6x). Sector median 15x → Fair EV ≈ ₹3,150 Cr → Fair equity value ≈ ₹2,300 Cr → ₹410 per share.
DCF (Discounted Cash Flow): Assume PAT grows 25% CAGR for 5 years, terminal growth 4%, discount 12%. Fair range: ₹370–₹440.
👉 Educational Fair Value Range: ₹370–₹440/share. CMP ₹383 sits right in the middle — the Goldilocks zone of “not cheap, not expensive, just mildly leveraged.”
(This range is for educational purposes only and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
The last quarter was a management musical chairs session. CEO resigning Nov 3, CFO leaving Dec 31, new faces joining in Jan 2026. Either HR’s hiring spree is on steroids or there’s some Apollo-style reorganization ahead.
CRISIL reaffirmed rating AA(CE) with Stable outlook. ICRA gave A1+ for short-term papers. Translation: banks like them, but not enough to give them cheaper loans yet.
In FY25, the company crossed ₹1,600 crore AUM and now reports ₹2,325 crore as of Apr 2025. They’re planning NCD issuances of ₹500 crore to fuel the next leg. If executed well, this could be the NBFC sector’s dark horse — a stealth lender with industrial bloodline and fintech ambitions.
