SG Finserve posts operating-led profit with 91.68% margin
Zero other income kept earnings tied to operations, while management highlighted new-customer growth and two recently launched lending products.
Filed 16 Oct 2026, 14:00 IST · SG Finserve Ltd (SGFIN)
Key takeaways
- Consolidated Q2FY27 profit was generated without other-income support, with Rs 58.53 cr of net profit after Rs 68.22 cr of interest.
- SG Finserve's 91.68% operating margin was 31.11 percentage points above the 60.57% median for 12 reported Financial Services peers.
- Management said more than 80% of loan-book growth came from new customers in H1 FY27, alongside launches in Loan Against Property and digital lending.
Price around the results
Operating income carried Q2FY27 earnings
SG Finserve reported consolidated Q2FY27 revenue of Rs 160.94 cr and operating profit of Rs 147.56 cr, with other income at zero. The earnings conversion was therefore operating-led rather than supported by investment or non-core income. After Rs 68.22 cr of interest and Rs 0.23 cr of depreciation, profit before tax was Rs 79.11 cr and net profit was Rs 58.53 cr.
Interest was the main charge below operating profit
The Rs 68.22 cr interest charge was the largest deduction between operating profit and pre-tax profit, while depreciation was Rs 0.23 cr. Tax of Rs 20.58 cr represented a 26.01% tax rate, so the reported tax charge was a material second step-down from pre-tax profit. With no other income, there was no non-operating contribution flattering the quarter.
Margin ranked above all 12 reported sector peers
SG Finserve's 91.68% operating margin was 31.11 percentage points above the 60.57% median among 12 Financial Services peers that had reported the same quarter. The dataset provides no year-on-year, sequential or multi-quarter comparison, so the quarter's direction cannot be assessed against prior periods.
New products and customer additions shape the growth narrative
Management said more than 80% of loan-book growth came from new customers in H1 FY27. The company said it launched a Loan Against Property product starting in Delhi-NCR and a digital lending product under an LSP partnership. Management also said it targets AUM growth of 25%-30% CAGR and PAT growth of 30%-35% CAGR, with targets of RoA above 4.5%, RoE above 15%, cost/income below 15% and nil NPAs.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹161 cr |
| Other income | ₹0 cr |
| Expenses | ₹13 cr |
| Operating profit | ₹148 cr |
| Operating margin (%) | 91.68% |
| Interest | ₹68 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹79 cr |
| Tax | ₹21 cr |
| Net profit | ₹59 cr |
| EPS (₹) | ₹8.93 |
Operating margin of 91.68% compares with a Financial Services sector median of 60.57% across 12 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- More than 80% of loan book growth was contributed by new customers in H1 FY27.
Guidance & outlook
- The company targets AUM growth of 25–30% CAGR and PAT growth of 30–35% CAGR.
- The company targets RoA above 4.5%, RoE above 15%, cost/income below 15% and nil NPAs.
Expansion
- The company plans to expand its geographical presence, with 90% progress shown in its FY27 progress bar.
New products
- The company launched Loan Against Property, starting in Delhi-NCR, and Digital Lending under an LSP partnership.
New initiatives
- The company launched a Loan Against Property product, initially in Delhi-NCR.
- The company launched a Digital Lending product under an LSP partnership.
Competition
- The company says it is among approximately 1% of Indian NBFCs offering Supply Chain Finance, Factoring or TReDS.
What to watch
- Whether operating margin remains above 91.68% in the next reported quarter.
- Whether new customers continue to contribute more than 80% of loan-book growth.
- Progress against management's stated targets of 25%-30% AUM CAGR and 30%-35% PAT CAGR.