SG Finserve (Signature Global's NBFC Arm) Reports Q1 FY27 Net Profit Up 119% YoY to ₹53.68 Crore
SG Finserve Reports Record Q1 Growth on Expanded Lending Book
SG Finserve Limited has announced its un-audited financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The company commenced the new financial year with explosive growth across all primary parameters, more than doubling its net profit year-on-year on the back of rapidly growing interest income streams and well-contained asset quality metrics.
Profit and Revenue Performance
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. On a sequential basis, the net profit has increased by 26.99 percent, from Rs. 42.27 crore in Q4 FY26.
SG Finserve recorded a total revenue from operations of ₹13,610.83 lakh (₹136.11 crore) for Q1 FY27. This represents a massive 101.65% growth year-on-year over the ₹6,749.57 lakh (₹67.50 crore) reported in the corresponding first quarter of the previous fiscal year (Q1 FY26). The top-line performance also showcased sequential momentum, expanding 29.13% compared to the ₹10,540.62 lakh (₹105.41 crore) registered in the immediate preceding March 2026 quarter (Q4 FY26).
Profitability and Asset Quality
Driven by strong revenue generation outperforming expense increments, SG Finserve's Profit Before Tax (PBT) reached ₹7,150.59 lakh, up from ₹3,385.40 lakh in the same quarter last year. 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.
Impairment charges on financial instruments-which reflect credit provisions-dropped down to ₹87.42 lakh from ₹103.33 lakh in Q1 FY26, signaling efficient asset oversight. The company boasts a best-in-class asset quality with nil NPAs, reflecting strong credit management.
Lending Growth and Balance Sheet Strength
The company's loan book reached a record INR4,552 crore, growing 16% quarter-on-quarter and 82% year-on-year. Net interest income (NII) rose 92% YoY and 31% QoQ to Rs 82.1 crore in Q1 FY27.
SG Finserve Ltd maintains a strong net worth of INR1,539 crore with a moderate leverage of 2.2x and a capital adequacy ratio of 32%.
Strategic Initiatives and Outlook
The Board has granted in-principle approval for evaluating the acquisition of a 51% stake in Succesship Technologies Private Limited, with an overall maximum investment of Rs 20 crore. The company has granted in-principle approval to explore establishing a Finance Company in GIFT City as a wholly owned subsidiary, subject to regulatory evaluations and strategic viability. The company incorporated a wholly owned subsidiary named SG Insurance Brokers Limited during the quarter.
Management shared detailed guidance during the earnings call, stating clear visibility to achieve a PBT of around INR 300 crores for FY27, representing approximately 75% year-on-year growth, which would translate to around INR 225 crores PAT. 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.
Business Model and Parent Company Context
SG Finserve is engaged in providing technology-enabled supply chain and channel financing solutions, offering working capital finance to dealers, distributors, vendors, retailers, and logistics partners. The group operates an NBFC segment alongside its core real estate division, providing in-house construction finance and equipment finance to projects. This is a reportable segment under the company's exchange filings.
The parent company, Signature Global (India) Limited, was founded in 2014 and is headquartered in Gurugram, having commenced operations in the affordable housing segment and strategically ventured into the mid-income housing market in 2017.