SG Finserve FY26 results: PAT up 58%, income 96%

Strong FY26 print sets the tone

SG Finserve Ltd (BSE: 539199) reported a sharp improvement in FY26 performance, driven by higher scale in its supply chain financing-led model and a larger loan book. In its Q4 FY26 earnings call dated April 16, 2026, management highlighted operating income of ₹334 crore, up 96% year-on-year. Profit after tax (PAT) for FY26 stood at ₹128 crore, a 58% year-on-year increase. The company also ended the year with an assets under management (AUM) and loan book of ₹3,936 crore, described as an all-time high.

The FY26 numbers matter for investors tracking fast-growing NBFCs because they combine growth in income, expansion in the book, and a stronger balance sheet supported by fresh equity. The company also outlined its growth expectations for FY27, while answering questions around operating costs and the jump in fee income.

FY26 audited highlights: income nearly doubles

A separate FY26 results note said total revenue from operations nearly doubled to ₹333.41 crore (from ₹169.97 crore in FY25). Interest income was cited at ₹320.15 crore, underscoring the extent to which growth is being driven by the core lending engine. Basic EPS increased to ₹22.75 in FY26 from ₹14.54 in FY25.

Management, on the call, framed the year as a continuation of momentum built through FY26, with operating income and profitability rising alongside the larger book. It also pointed to the company’s digital and invoice-financing capability as a factor behind its scale-up.

Q4 FY26: sequential profit growth and higher income

In Q4 FY26, the company reported standalone net profit of ₹42.3 crore, compared with ₹23.8 crore in Q4 FY25, implying 78% year-on-year growth. Sequentially, net profit increased 30% from ₹32.5 crore in Q3 FY26. Management also stated Q4 profitability rose to about ₹43 crore from ₹32 crore in the previous quarter.

Total income in Q4 FY26 was ₹105.7 crore, up 95% year-on-year and 23% quarter-on-quarter (from ₹85.8 crore). Profit before tax (PBT) in Q4 FY26 was ₹56.21 crore, up 81% year-on-year and 30% quarter-on-quarter. Net interest income (NII) was reported at ₹62.8 crore, up 77% year-on-year and 27% quarter-on-quarter.

Loan book and AUM: end-FY26 at ₹3,936 crore

The company’s loan book reached ₹3,936 crore as of March 31, 2026, reflecting 75% year-on-year and 23% quarter-on-quarter growth. Management linked this to its core supply chain business, and said it commercialised a factoring business in March.

It also disclosed average AUM for FY26 at ₹2,640 crore versus ₹1,282 crore in FY25, a 106% increase. Separately, a data point in the same compilation indicated AUM of ₹3,210 crore as of December 31, 2025, suggesting continued build-up into the March quarter.

Disbursements cross ₹25,000 crore in FY26

Management stated gross disbursements for the full year crossed ₹25,000 crore. Another note described this as a 40% year-on-year increase. The company presented this as evidence of its digital execution and invoice financing capability.

While disbursements represent flow and AUM represents stock, the combination of higher disbursements and a higher year-end book indicates the company expanded origination while retaining a larger book through the year.

Costs and fee income: what investors asked

On the earnings call, a participant flagged a rise in employee benefit expense from ₹2 crore to ₹6 crore. The question referenced about ₹3.5 crore plus ₹2.54 crore on account of ESOP, adding up to roughly ₹6 crore.

Another query focused on the jump in fee income, citing ₹1.5 crore in Q3, ₹1.89 crore in the year-ago quarter, and ₹6.23 crore in the latest quarter, seeking reasons for the increase. The provided text captures the questions and the context, but does not provide a detailed numerical breakdown of fee income drivers.

Capital position: equity up, leverage at 1.9x

The company raised ₹316 crore through conversion of share warrants during the quarter, strengthening its capital base. It said it remained well-capitalised, with total equity of ₹1,460 crore and leverage of 1.9x.

In the audited results note, other equity (reserves) was stated at ₹1,394.95 crore as of March 31, 2026, compared with ₹958.88 crore in the previous year. Paid-up equity share capital was reported at ₹65.27 crore.

FY27 guidance: management targets 25%-30% CAGR

Management indicated it intends to maintain AUM growth guidance of 25% to 30% CAGR on an ongoing basis. For FY27, it suggested AUM growth could be “upward of 30%”, while also describing an aspiration of around 35% to 40%.

It also linked its FY27 optimism to the current capital structure and the fresh equity raised, stating that additional capital would support the growth engine.

Stock reaction and board update

SG Finserve shares rose 7.67% to ₹499.80 after the Q4 FY26 results, according to the provided market update. The same update also said the board approved the appointment of Deepak Kumar as an additional director (non-executive, non-independent) and chairperson, effective April 16, 2026, subject to shareholder approval.

Key numbers table

Why the FY26 result matters for NBFC investors

The FY26 disclosures show a model scaling quickly: income growth of 96% alongside loan book growth of 75%, with profitability rising in tandem. For NBFCs, the ability to expand AUM while maintaining profit growth often depends on capital availability, cost discipline, and risk management. In this case, the company explicitly tied its FY27 confidence to fresh equity and a stronger capital base.

At the same time, questions raised on the call around higher employee costs and the quarter’s fee income jump highlight what markets typically monitor next: sustainability of operating leverage, and how much of profitability is driven by recurring lending income versus more variable fee lines.

Conclusion: focus shifts to execution against FY27 AUM targets

SG Finserve closed FY26 with operating income of ₹334 crore, PAT of ₹128 crore, and a year-end loan book of ₹3,936 crore. Q4 added further momentum, with net profit of ₹42.3 crore and total income of ₹105.7 crore.

Management’s stated FY27 AUM growth aspiration of 35% to 40% and its medium-term guidance of 25% to 30% provide the next set of benchmarks. Investors will track subsequent quarterly updates for how the factoring business scales after its March commercialisation, and how costs and fee income behave as the balance sheet grows.