SG Finserve Ltd Q3 FY26 – ₹3,210 Cr Loan Book, 0% GNPA, 50% Financing Margins & A Post-Broking Rebirth Nobody Saw Coming

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