Crisil Rating assigns 'AA-/A1+' rating to credit facilities of SG Finserve
SG Finserve is a group company of APL Apollo Group, whose flagship entity is APL Apollo Tubes (AATL). The rating on SG Finserve factors in the expectation of strong support from the APL Apollo Group, along with comfortable capitalisation and healthy earnings profile of the company.
However, these strengths are partially offset by ability to scale up operations while sustaining healthy asset quality and earnings profile.
As of June 30, 2026, promoters hold 56.95% of the shareholding and the promoters are expected to continue to hold the majority shareholding in the company over the medium term.
Since inception promoters and investors have infused Rs 1,159 crore in the company of which Rs 316 crore was in fiscal 2026 and Rs 21 crore in Q1 of fiscal 2027. SG Finserve is expected to benefit from the group?s managerial, operational, and financial support, including fund- raising at competitive rates.
Capitalisation of the company remains comfortable with net worth and gearing at Rs 1539 crore and 2.2 times respectively as of 30 June 2026, supported by internal accruals and regular capital infusion.
The company?s earning profile also remains healthy with profits after tax (PAT) of Rs 128 crore in fiscal 2026 and Rs 54 crore in Q1 of fiscal 2027 which translates to a return on average managed asset (RoMA) of 3.9% for fiscal 2026 and 4.7% for Q1 of fiscal 2027.
Assets under management (AUM) of the company stood at Rs 4,552 crore as on 30 June 2026, compared to Rs 3,936 crore as on 31 March 2026 and Rs 2,246 crore as on 31 March 2025.
Therefore, company?s ability to maintain its earnings profile and asset quality on a sustained basis while scaling up the operations remains monitorable.
SG Finserve is an RBI-registered, technology-enabled non-banking financial company (NBFC) focused on supply chain financing solutions for dealers, distributors, retailers, buyers, suppliers and logistics partners of Indian corporates.
The scrip had advanced 0.16% to currently trade at Rs 624 on the BSE.
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