SG Finserve's loan book jumps 82% YoY to ₹4,551 cr in Q1
Provisional loan book up 16% QoQ, well above 25-30% CAGR guidance. Final results pending audit.
What's new
- Loan book grew 16% sequentially and 82% year-on-year to ₹4,551 crores.
- Growth driven by supply chain financing momentum, says the company.
- Figures are provisional, subject to audit committee and board approval.
Why this matters
SG Finserve has posted another quarter of blistering loan book expansion at 82% YoY, far above its steady-state guidance of 25-30% CAGR. For a small-cap NBFC with a market cap of ₹3,868 cr, this pace signals strong demand in its supply chain niche. But the provisional tag and lack of asset quality details mean the real test comes with the audited quarterly results.
What we're watching
- Q1 results: asset quality, NIMs, and cost of funds.
- Whether loan book growth translates into proportional revenue and PAT growth.
- Management commentary on sustainability of the 80%+ growth trajectory.
The full read
SG Finserve ended June with a provisional loan book of ₹4,551 crores — up 16% from March and 82% from a year ago. The supply-chain NBFC has far exceeded its 25-30% CAGR guidance. That is a clear signal of strong business momentum. But the figure is provisional, pending audit committee sign-off and a limited review. For a small-cap NBFC with a 30.3x trailing P/E, the market has built in high expectations. The real test will be whether this loan book expansion flows through to margins and asset quality when the full Q1 results are released. Until then, this is a strong data point, not a final verdict.
Questions answered
- What was SG Finserve's loan book at the end of March?
- The March closing loan book was roughly ₹3,936 crores (the prior quarter's AUM figure). The June quarter provisional figure of ₹4,551 crores represents a 16% sequential increase.
- How does this growth compare to the company's own guidance?
- Management had guided for a 25-30% CAGR loan book growth. The 82% YoY jump is far above that range, indicating a strong acceleration in business.
- Is the ₹4,551 crore figure final?
- No. It is provisional and subject to approval by the audit committee and board, and a limited review by statutory auditors before official Q1 results.
- What segment drives SG Finserve's loan book?
- The company focuses on supply chain financing, which likely drove the strong growth, though the filing does not break down the book by segment.
- How does SG Finserve's valuation look relative to this growth?
- With a market cap of ₹3,868 cr and trailing P/E of 30.3, the stock is not cheap. However, the trailing revenue growth of 94.9% and PAT growth of 77.7% suggest the high multiple may be supported if the trend continues.