SG Finserve Q1: standalone PAT doubles YoY to ₹53.7 Cr as interest income surges ~100%

SG Finserve delivered a strong Q1 FY27, with standalone total income of ₹136.13 Cr up ~101% year-on-year (from ₹67.59 Cr) and ~29% sequentially, and net profit of ₹53.68 Cr up ~119% YoY and ~27% QoQ. The print is clean — no exceptional or one-off items on either side — so the near-doubling of profit is underlying, driven almost entirely by the loan book: interest income rose to ₹128.86 Cr (from ₹64.46 Cr a year ago) as the supply-chain finance AUM scaled, with the loan book already reported at ₹4,551 Cr for Q1. Net profit margin improved to ~39.4% YoY (from 36.3%) but eased slightly from ~40.0% last quarter, a modest sequential compression that sits on rising finance costs (₹54.06 Cr, up ~118% YoY) as the company levers up.

Against management's own guidance from the Q4 concall, the quarter is on track: the ~100% jump in interest income is consistent with the aspired 35-40% FY27 AUM growth, and the core NIL-NPA tenet held — both Gross and Net NPA are reported NIL. Leverage is building toward the guided ~3x, visible in the finance-cost line. There is no formal quarterly PAT guidance and, for a small-cap NBFC of this size, no published street consensus on record, so the result is best read against management's stated trajectory rather than a numeric estimate. EPS of ₹8.21 (vs ₹4.39 YoY) grew ~87%, trailing the ~119% PAT rise because the share count expanded on conversion of share warrants (6,27,778 shares this quarter; paid-up capital up to ₹65.90 Cr from ₹55.90 Cr).

The stock went into the print at ₹636.55, up 4.1% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

Alongside the numbers, the board acted on capital and expansion: ₹50 Cr of NCDs were fully redeemed (Apr 6, 2026) and ₹30 Cr of commercial paper issued (Jul 3), a wholly-owned subsidiary SG Insurance Brokers was incorporated (no P&L impact yet), and in-principle approvals were granted to acquire 51% of Succesship Technologies (up to ₹20 Cr) and to explore a GIFT City finance subsidiary — signalling a push beyond the core lending book. These are early-stage and did not affect this quarter's result.