SG Finserve sees strong Q2 growth, leadership change

SG Finserve Limited reported a strong Q2-FY26 performance, with its loan book growing by 15% quarter-on-quarter to INR2,878 crores as of September 2025. This growth translated into a 14% increase in profit before tax and a 16% increase in net profit for the quarter. The company maintained a zero non-performing asset level, underscoring its robust business model and anchor partnerships. Despite a slight downward revision in full-year PAT guidance to INR120-125 crores from an earlier INR150-160 crores due to a slowing macro environment, SG Finserve expects a 10-15% quarter-on-quarter EPS growth in Q3 and Q4.

The company is targeting an asset under management of INR6,000 crores by FY27, with an exit loan book for FY26 projected at INR3,500 crores. This growth will be supported by an equity base of INR1,071 crores, with an additional INR338 crores expected by April 2026. SG Finserve plans to expand its reach digitally and deepen relationships with existing anchors, while also onboarding new industry leaders.

Key leadership changes include the departure of CEO Sorabh Dhawan and COO & CFO Sahil Sikka. Vinay Gupta, a chartered accountant with over 20 years of experience, will take over as the new chief executive in November. Sanjay Rajput, formerly head of finance and accounts, has been appointed chief financial officer, and Saurabh Mishra is the new head of internal audit. The company aims for an eventual return on equity of 18-19% and expects its cost-to-income ratio to decrease to 60 basis points, and then to 55 basis points over the next two financial years.