SG Finserve's credit outlook shifts to stable by CRISIL

SG Finserve Limited announced that CRISIL Limited has converted the credit rating outlook for its Bank Loan Facilities from 'Positive' to 'Stable', while reaffirming the underlying rating. The facilities, totaling Rs. 1000 crore, were reaffirmed as Crisil AA (CE)/Stable. This adjustment follows a similar action on the credit risk profile of S Gupta Holding Pvt Ltd (SGHPL), the holding company, due to an expected reduction in SGHPL's debt cover amidst increased borrowings.

The provisional rating is primarily backed by an unconditional and irrevocable corporate guarantee from SGHPL, which holds a 26.61% stake in APL Apollo Tubes Ltd. Despite the outlook revision, SG Finserve's strategic importance to the APL Apollo group remains high, supported by Rs. 450 crore in fresh equity warrants issued in October 2024 and comfortable capitalization with a net worth of Rs. 1042 crore as of June 30, 2025. The company's loan book reached Rs. 2,504 crore as of June 30, 2025, since resuming operations in October 2024 after a license category conversion.