NBFC Stock Jumps 8% After Announcing 119% YoY Increase...

Synopsis: SG Finserve Limited reports 101.64% YoY revenue growth and a 119.01% YoY surge in net profit in Q1 FY27 results.

This Small-Cap NBFC stock, engaged in providing technology-enabled supply chain and channel financing solutions, offering working capital finance to dealers, distributors, vendors, retailers, and logistics partners, jumped 8.38 percent after the company reported June quarterly results with a 119.01 percent YoY increase in net profit.

With a market capitalization of Rs. 3,557.16 crores, the share of SG Finserve Limited has reached an intraday high of Rs. 669 per equity share, rising nearly 8.38 percent from its previous day’s close price of Rs. 617.30. Since then, the stock has retreated and is currently trading at Rs. 635 per equity share.

Q1 FY27 Result Walkthrough

Coming into the quarterly results of SG Finserve Limited, the company’s consolidated revenue from operations increased by 101.64 percent YOY, from Rs. 67.50 crore in Q1 FY26 to Rs. 136.11 crore in Q1 FY27, and grew by 29.12 percent QoQ from Rs. 105.41 crore in Q4 FY26.

In Q1 FY27, SG Finserve Limited’s consolidated net profit increased by 119.01 percent YOY, reaching Rs. 53.68 crore compared to Rs. 24.51 crore during the same period last year. As compared to Q4 FY26, the net profit has increased by 26.99 percent, from Rs. 42.27 crore. The basic earnings per share increased by 87.02 percent and stood at Rs. 8.21 as against Rs. 4.39 recorded in the same quarter in the previous year, FY2026.

Management Guidance

SG Finserve Limited has outlined an ambitious growth roadmap through FY30. The company expects profit after tax (PAT) to increase from Rs. 120 crore in FY26 to Rs. 375 crore by FY30, representing a robust CAGR of approximately 30 percent. Assets under management (AUM) are projected to grow from Rs. 3,210 crore as of December 2025 to Rs. 7,500 crore by March 2030, driven by continued expansion in its lending portfolio and increasing business activity.

The company also aims to enhance its profitability and capital efficiency over the period. Return on Assets (RoA) is expected to improve from 4.4 percent in FY26 to 5.0 percent by FY30, while Return on Equity (RoE) is projected to increase from 10 percent to 15 percent.

Additionally, Profit Before Tax (PBT) is expected to rise from Rs. 110 crore in FY25 to Rs. 500 crore by FY30. Despite its growth plans, SG Finserve intends to maintain a leverage ratio below 3x, reflecting its focus on disciplined capital management and sustainable long-term growth.

Corporate and Financing Partners

SG Finserve Limited has established strategic relationships with leading corporates, including Tata Motors, Adani Group, Vedanta Limited, and Kajaria Ceramics. These partnerships strengthen the company’s market presence and ensure consistent demand across key sectors such as infrastructure, construction, and manufacturing.

The company also maintains strong banking relationships with major financial institutions, including HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda. These partnerships enhance its access to funding, support financial flexibility, and provide the resources needed to efficiently manage operations while supporting future growth initiatives.

Shareholding Pattern

In June 2026, SG Finserve Limited had a majority stake held by the promoters at 56.95 percent, foreign institutional investors at 0.54 percent, domestic institutional investors at 2.18 percent, and the public at 40.34 percent. Ace investor Madhusudan Kela holds a 1.44 percent stake in SG Finserve Limited, valued at Rs. 61.3 crores, consisting of 951,773 shares.

Company Overview

SG Finserve Limited is an Indian non-banking financial company (NBFC) specializing in supply chain and channel financing. The company provides technology-enabled working capital solutions to dealers, distributors, vendors, retailers, and logistics partners, with a primary focus on businesses operating within the APL Apollo Group ecosystem.

Annual Performance of FY26

SG Finserve Limited’s revenue has increased from Rs. 170 crore in FY25 to Rs. 334 crore in FY26, which has grown by 96.47 percent. The net profit has also grown by 58.02 percent from Rs. 81 crore in FY25 to Rs. 128 crore in FY26.

SG Finserve Limited’s revenue and net profit have grown at a CAGR of 169 percent and 141 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 9.32 percent and 10.3 percent, respectively. SG Finserve Limited’s debt-to-equity ratio is 1.85x.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post NBFC Stock Jumps 8% After Announcing 119% YoY Increase in Net Profit appeared first on Trade Brains.