Sg Finserve Ltd (BSE: 539199) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Vinay Gupta — Chief Executive Officer
Anubhav Gupta — Group Chief Strategy Officer
Analysts:
Unidentified Participant
Shreepal Doshi — Analyst
Sucrit Patil — Analyst
Kushal Jajodia — Analyst
Shashank Jha — Analyst
Sangeeta Purushottam — Analyst
Punit Mittal — Analyst
Daksh Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the SG Finserve Q3FY26 conference call hosted by Aquarius Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that the conference is being recorded. This conference call may contain forward looking statements about the company which are based on the beliefs, opinion and expectations of the company as on date of this call.
These statements are not the guarantee of future performance and involve risk and uncertainty that are difficult to predict. I now hand the conference over to Mr. Sripal Doshi from Aquarius Securities. Thank you. And over to you Mr. Sripal
Shreepal Doshi — Analyst
thank you Rudra. Good evening everyone. We welcome you all to the earnings. Conference call of SG Finsout to discuss the Q3FY26 performance of the company. Today we have the management of the company represented by Mr. Vinay Gupta CEO, Mrs. Sanjay Rajput, CFO and Mr. Anubhav Gupta Group Chief Strategy Officer. Without taking much time, I would now like to hand over the call to the management for their opening remarks post which we can open the forum for question and answer. Over to you sir.
Vinay Gupta — Chief Executive Officer
Hi, this is Vinay Gupta. Jai Hind everyone. I would like to first thank my predecessor Sourab Dhawan for laying a strong foundation of SG FinSO and under the guidance of our sponsors we are fully committed to taking this franchise to new heights while creating sustainable value for our stakeholders. We are also pleased to share year NBFC has delivered an excellent financial and operational performance during the Q3 and the nine month ending December 25. We have achieved all time high loan book of 3210 crore as on 31st December resisting a quarter on quarter growth of 12%. At the same time our profitability perspective profit after tax for Q3 stand at 32 crore reflecting a quarter on quarter growth of 15%.
For the nine months ended December our PAT was 85 crore with a year on year growth of 49%. Supply chain financing as you everyone know continues to remain our core strength and focus which contributes to around 70% of our AUM as of today. Recently RBA has granted us license to commence our factoring business which further strengthen our supply chain financing offering. Operationally we remain a very highly disciplined NBSP with cost to income ratio of less than 15% nil NPAs. We have delivered return on asset of 4.4% and return on equity of 10.5% on annualized basis for the first nine months.
From a balance sheet perspective we are well capitalized with equity of approximately 1100 crore and a conservative leverage of nearing 2x which provides us an ample headroom to support our growth over the next. Three to four years. From a forward looking guidance perspective, our growth is targeted very clear and focused manner on the loan book size for the next four years. As a CAGR basis we look to grow at 20% to take the book to 7,500 crore by March 2030. However, on the profitability perspective the CAGR would be around 30% during the same period so that we achieve 500 crore kind of a PBT in FY30 which will translate to return on asset of around 5% and return on equity of around 15%. Our strategy is centered around deepening and widening where we’ll strengthen our relationship with our existing anchors and customers, acquire new customers outside in the market and from the existing anchor base, expand our product offering, forge some new strategic partnerships and explore new financial services subject to regulatory approvals.
Our today board has approved the expansion plan to set up new four subsidiaries which will further augment our fee based revenue. We are looking it’s a completely the drawing board space today but the board has approved to explore these areas of arc, alternate investment fund, insurance broking business and the fintech business. At the closing I would like to sincerely thank all our stakeholders for their continued trust and support. Together we will continue to build a strong scalable and sustainable sequencer. Thank you everyone. Over to you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sukrit Deepatil from Eyesight Fintrade Private Limited. Please go ahead.
Sucrit Patil
Good evening to the team. I have two questions. My first question is to Mr. Gupta. As SG Finserv transitions under new leadership, how do you see the lending portfolio evolving over the next two to three quarters? Particularly in balancing retail, SME and supply chain finance? And what role will digital underwriting, risk analytics and partnerships play in scaling customer acquisition while maintaining asset quality? That’s my first question. I’ll ask my second Question after this. Thank you.
Vinay Gupta
Thank you Supreet for the question. On the retail side, as of now we are not doing any retail. We are only doing supply chain which is anchored to dealer only. Thing we are trying to do now as part of the investor presentation. I am sure you would have seen we are trying to deepen our engagement at a tier 2 level which is more strategic in nature, granular in nature and high yielding and stickiness. So retailing as of now we are not doing so. Supply chain will continue to be. Currently 70% of our AUM as I said in my opening remarks is supply chain.
And we would continue to maintain that 70% between the anchor LED or open account financing or a supply a supply chain factoring based business. As of today we are not looking to enter into retail.
Sucrit Patil
Okay. And my second question is to Mr. Mr. Sanjay. With strong capital adequacy and a growing nbsp. How are you planning to sustain margins while managing funding cost and credit risk? Looking ahead, what is your framework for balancing operating levers, disciplined capital allocation and compliance to drive ROE in the long term?
Vinay Gupta
Yeah. Thank you. So I’ll only take that answer question Suprij, if you allow. I know Vinay here. So currently our leverage is 2x. Okay. With an 1100 crore equity. Another equity of 388 crore is already due which is coming to come to terms with few approvals for the Q4 put together. I think we are looking to have a equity base of somewhere between 1450 crore to 1500 crore as we begin the new financial year and the AUM growth. As I said we are going to look only 20% CAGR. So as of today the 2x is the only leverage we have planned.
However, as part of our board approvals we already have 5,000 crore borrowing clients already approved. There are banks. We are already dealing with 18 banks and two mutual funds in the market in terms of our borrowing. So I think the room is ample for us available in terms of the existing equity base to grow our balance sheet. We from a 2x to 3x. If we were to leverage ourselves then yes, resultant return on equity will be higher. However, we would like to play little more conservative considering it’s still initial stage of our operations.
Sucrit Patil
Thank you. And I wish the entire team best of luck for the next quarter.
Vinay Gupta
Thank you so much.
operator
Thank you. Our next question is from the line of Kushal Jajodia from Kushal Jadodia and Associates. Please go ahead.
Kushal Jajodia
Hi management. Hi team. So my question is for Anubhav Guptaji. Anubhav so wanted to ask. The subsidies will be funded by the share warrant spending due, right?
Anubhav Gupta
That’s right.
Kushal Jajodia
Right. So when can we expect the money to come to the company? By March or April.
Anubhav Gupta
So April is the deadline, Right. But I mean we might do it earlier also. Although is no compulsion on the shareholders, right? To do it earlier. But yes, the idea is if it comes early so then 31st March balance sheet will appear much stronger.
Kushal Jajodia
I wanted the guidance for FY27 and 28. So the thing is FY26 27 you have clear cut. Given the guidance of 6000 crore AUM. And in the investor presentation which we got it today, March 30th we are predicting AOM of 7500 crores. So why this three years we are downgrading our run rate. Basically if you are adding something like in the previous con calls you have given key every year we are predicting to add like thousand crores AUM. So post 2026, 27 from 6000 why we are lowering it to 500 crores per per year or something like that.
Anubhav Gupta
So what had happened was that you would remember that there was this withdrawal of license from the rbi. Right? Where we could not run the business for good six, seven months on the full scale. Right. Because we had to get the type 2 license which put the company behind by six to eight months. Okay. So that’s the reason that why this guidance looks. Looks lower compared to like what we had given when we started the company. But see, I mean this year we’re going to close our AUM at 3500 crores. And then every year we’re going to increase it by thousand crores, not 500 crores.
Kushal Jajodia
So because our guidance for 2526 a 6,000 crores AUM. Right? 26, 27. Sorry. Sorry.
Anubhav Gupta
Yeah, yeah. So.
Kushal Jajodia
So now and in the Investor presentation of March 30 is given 7,500. So on an average from FY27 onwards, basically we are predicting on an average only 500 crore AUM will be added.
Anubhav Gupta
Thousand? No, every year thousand. Thousand is getting added. March 27 continue to be 6,000. That’s why you’re calculating 500 crore. But that’s not the case. March 27 also we are lower down, right? So. So we are talking about 20 CAGR. Okay. From March 26th to March 30th we are talking about 21 CAGR. Right? So. So see, I mean please understand that SG Finserv as a company it had two key developments in last one year one was, I mean the business got faulted because of the renewable of license, right? What we had to do. Second obviously the team which started the company, it went out and then the new team coming in. So now it’s just that we. I mean we are being a bit conservative, right? While giving guidance. Once we achieve these numbers, I mean, I mean there is no harm in upgrading the guidance. Right Now I’m sure you’ll be following Apil Apollo steel tube stock as well, right? In Q1, when things were not to great, right? We cut our guidance from 20% volume growth to 10% to 15% volume growth.
Now first nine months we did well. And yesterday only on the earnings call we upgraded the growth guidance to 20%. So that’s our group philosophy that let’s not be too aggressive on guidance. Given that two key developments just got over. New management is taking charge, right? Although the base team is same. But still we want to give some breather to the new management. So that in aggression we shouldn’t be doing any error or any mistake. So six months, I mean who knows that we may close March 26th more than 3,500 crores. Or maybe we achieve 4,500 crores within 2026 calendar year.
So if that happens then I mean it just takes like you know, one earnings call, one analyst call to say hey, I mean we are doing good and now we are upgrading our guidance.
Kushal Jajodia
Just last one more question. Can you elaborate more about the AF you are trying to open as a subsidiary? What will the AF do?
Anubhav Gupta
So, so this is a very broad based idea, right? I mean no. No development as of now. Okay. It’s just a broader vision, what we are telling the investors, right? No action is being taken as of now. And we are still like few quarters away. Right now the focus Is to achieve 4,500 crore loan book in next 12 months. That’s the idea.
Kushal Jajodia
Okay. Okay. Thank you so much.
operator
Thank you. Participants who wish to ask a question may press star and one on their touchstone telephone. Our next question is from the line of Shashank Jha from SB Capital. Please go ahead.
Shashank Jha
Yeah, my question was already questioned by. Thank you.
operator
Thank you. Our next question is from the line of Shubma and individual investor. Please go ahead.
Unidentified Participant
Hey. Hello. Sir, are you able to hear me? Hello.
operator
Yeah. Hello.
Anubhav Gupta
Yeah.
Unidentified Participant
Are you able to hear me? Yeah. So this is Shubham. So my question is regarding your guidance change, right? Like I’ve been following this company since 1 1/2 years. Like we have not been clear in our guidance, right? And the thing that I wanted to check with your team is like of course like you are giving some guidance to the investor community. But such change in your aspirations, it might also create some dissonance within your team, within your management team, right? So what are you targeting as a management team? Like what is that internal number that you are changing? If you can just share some highlight on that also like 1000 crore additionally AUM for the next four years, right? This seems very linear when you want to grow at 20% CAGR this number should also be not 1000 crore either.
It should start from 600 crore and then go to 1500 crores, right? Because your size of the organization will also increase. So have we actually calibrated this guidance? Is there some science behind this guidance? Or we have just given or we have just put some number there like 1000 crore per year. That doesn’t. Doesn’t actually make sense to be very, very honest, right? Like size of organization will change, everything will change. And why this 1000 crore linear number year year after year.
Anubhav Gupta
So let’s split this question into two parts. One is that what, what went wrong in revising the guidances, right? Continuously in last two and a half years. And now the, and now the guidance which we have given. Why we think this is fair to give as of date. And there will always be probability that it could be further upgraded. So I’ll take the first part and I’ll let Vinay take the second part. So see, I mean like I said the company went through two key situations, right? I mean as a group we were new to this business.
This RBI thing which had come in, right? It came like overnight, right? And we had to run down the business, right? From 2000 crore loan book we had to bring it down to 1200 crore within like weeks time. And we had to give money back to the banks, right? And then promoter had to infuse funds which he did. Then again we had to re initiate the process with the banks to get the limits etc. Right? So this all took almost 7, 8 months, right? Of the business operations. And when the company got on track in terms of RBI licensing then we had the exit of key management personnel, right? So I think, I mean these are the two main reasons that why we had to keep on kind of revising down our guideline etc.
But now it’s fairly stable, right? I mean whether the RBA license and the new management which has taken charge. So the guidance again I mean it’s just like two months. Vinayan team joined In. Right. We just don’t. As a promoter group, we don’t want to pressurize the new team so much. Right. That it could be. I mean thousand crore addition every year looks linear. Yes, it is. Right. But like I said, this is not something which is riding on a wall, right? Which is which we are going to stick to it. Okay. First idea is that I mean see, growth from 3,500 to 4,500 is 33%.
Okay. If we achieve 33% loan book growth, right. By March 27th or if we are able to achieve it say by December 26, it gives us confidence. Hey, next year let’s aim for 6,000 or 6,000 plus and then maybe 8,000 and maybe 10,000. Not only 7,500 by FY30. That this is was. This was our original Plan to reach 10,000 crore by 2030 when we have started the company. 2022. So, so. So 10,000 crore loan book by 2030 is possible, right? It’s just that we want to go slow. Okay. And the idea to be so transparent in giving these numbers to you so that the expectation gets set on day one.
And the new team starts working on to overachieve these numbers. Right? And again, see, I mean whatever growth numbers we have given. But I mean what we want is that the company should stand on zero NPA. Okay? We don’t want any NPA. And that’s the beauty of like running an NBSD that we have learned from 2020 to 2026, now more than three years that 50, 60,000 crores of gross disbursement. What we have done, we are sitting on 0nps. It’s very easy to say that hey, I can grow a 2000, 3000 crore loan book every month.
But what if NPAs come from there, right? For us what matters to us more than growth is no accident, okay? No npa. So if we grow loan book faster than what we have guided for without any npa, we will go aggressive next year, right? But.
Unidentified Participant
But, but then what is. What is the sense of guidance, right? Either we should. We should not then give long term guidance if we are ourselves saying that we will change it to the.
Anubhav Gupta
Yeah, it’s a fair point. It’s a fair point that we could have given guidance for say two years. I mean we will. I mean.
Unidentified Participant
Yeah, because it will set.
Anubhav Gupta
Yeah.
Unidentified Participant
Yeah. It will take the maybe bar too low for your team also, right? Like that is also one more perspective.
Anubhav Gupta
Like also this is.
Unidentified Participant
Yeah. Like you won’t. You won’t get any Questions here. Then again, right, like if investors, either the high growth investors will leave or they will say that this is the expectation. So don’t. They won’t question you on that. Right. And nobody will be chasing you for that good metric. Also growth is also a good metric to chase. Right. So that was my point. But I understand your point sir. But better would have been like you you give some short term guidance within next one or two years and or either not give guidance and have good decent amount of targets for your team as.
As you see fit. Also sir, one follow up on this. Like does this guidance
Anubhav Gupta
fair enough just. To add to the point. Sorry. So yeah, so the guidance is given for the investors in this presentation. This is not the internal target. So what we have given to the team. So just to clarify but your point is well taken. Yes. Your next question please.
Unidentified Participant
Okay sir, my question is like does that factoring business rate that is a big business that you got the license for the industry size is big for that. And. And we are also in very innocent stages of that industry. Right. So does this guidance also include that factoring mixing us? Have we thought about that or do we, are we doing some internal planning around around that factoring business? Like what can be the profit for Pool Aum and all those things around that.
Vinay Gupta
Shubham. Hi Vinay here. So the factoring business is not going to be very significant business. We wanted to expand our product offering because they are currently we are more focused towards business to dealer business to distribution business. We as an NBFC are not present in business to business business. The B2B sales or the trade which is happening between the buyer and seller that is a segment we want to target. But factoring business, as I’m sure you would know it’s not very from a cost discipline and a credit discipline perspective. It needs a lot of recalibration. So we are not looking to grow very aggressively on the factors it will be.
We would like to start with, you know with baby steps and then build and learn, learn and build.
Unidentified Participant
Thank you. Thank you for your answers and patience. Thank you.
Vinay Gupta
Thank you.
operator
Thank you. Our next question is from the line of Sangeetha Purushottam from Cogito Advices. Please go ahead.
Sangeeta Purushottam
Yeah. Hi. Am I audible?
Vinay Gupta
Yes, you are.
Sangeeta Purushottam
Okay. So actually my questions also relate to the guidance as well as two slides 14 and 15. Now you know at one level would I be correct in saying that the primary reason that you have lowered the guidance is because of the change in the management team. Is that the main reason that you’re allowing the new team time to settle in. And that’s really the key reason. Otherwise, what has changed between last quarter and this quarter? Hello.
Anubhav Gupta
Yeah, so you can say that. Yes. Right. Because the. The growth plan which the earlier team was running, right? Yeah, definitely. We thought that let new team get settled in, right. Put accelerator on and then we can definitely kind of ramp up things. And that’s been the, that’s been the strength of our group. Right. And that’s how we scaled up SGF insert from October 22 when we started the business. Right. So just that like two situations which came in last 12, 18 months. We just thought maybe four or five months, let things get back on track.
And then like things were already back on track. It’s just that new team is able to put pedal, press the pedal and, and, and accelerate maybe like you know, not immediately after six months. That’s all.
Sangeeta Purushottam
Okay, so see the first point that you mentioned, you know about that, about the license which was revoked and which came back. That’s history, right? Whatever guidance you had given the 4,000.
Anubhav Gupta
Years back, Sangeetha, there was only.
Sangeeta Purushottam
Yeah, no, no, I. I understand. But you know, if you look at your last two presentations which have happened after that issue got sorted out, you were still giving a guidance of 4000 crores AUM and 6000 crores AUM by 2027. So that was post that issue getting sorted out now. That’s why I was saying that between the last quarter and now the only major change is that there’s been a change in the management. So that’s the incremental change. And because it. So is it really because of that that you have lowered the guidance or are you also facing some challenges in growth? And the reason I’m asking that is that somewhere.
Anubhav Gupta
Let me clarify, Sangeeta. It’s only because of the management. No other reason. I mean like I said, we can still. We can still close FY26 March 26th at 4000 crores.
Sangeeta Purushottam
Okay. So it’s mainly to allow the new management team to settle.
Anubhav Gupta
Yes. Yes.
Sangeeta Purushottam
Okay then in that case, you know, Anubhav, I do agree with what the previous participants said. If that’s the reason, I think that should have been just very clearly communicated. And I don’t see again the logic like him of giving an FY30 guidance of 7 and a half thousand crores. I mean, you don’t know what’s going to happen in the next 12 months to. Why are you giving a guidance for, you know, FY30. Okay. So that is. Yeah. The second thing is that. So are you somewhat over capitalized at this point in time? And is that the reason that you’re looking at some of these new strategic initiatives? Because if I look at, you know, slide 14 and 15, I’m not able to see a very clear logic of getting into some of these things or at least it’s not evident to me.
So it would be good if you could explain. Not a factoring. I see the logic, but many of the other points which are mentioned seem a little to me all over the place. And why would you at this stage want to put in 300 crores into asset management company alternative funds, etc. When the clear focus really should be to grow the core business as much as possible and stabilize that with a new management team? So I’m not very clear about these initiatives. It’d be good if you could spend some time explaining that.
Anubhav Gupta
Sure. Sangeeta. So coming to the first point of over capitalization. Okay. See, I mean and just to tell you like, you know, the kind of uncertainty I mean the capital markets have brought, right. Although it’s like warrant conversion has to take place right in March at 450 rupees. It’s family, right? We’re gonna put in investors. We have their commitment also, right. But three months back the stock price was at like 350 bucks, right? So, so one would wonder like whether the external money would come at 450 or not. But we, we know that it goes and we got the commitments.
Okay. So yeah, so, so, so after that money coming in like and, and 99.9%, it will happen by March, within March fiscal year, okay. So that we close the balance sheet with much more stronger financials. So we will be at 1500 crore of equity now from day one. I mean you guys have been tracking us, we have been saying that we will not leverage our balance sheet beyond two and a half, three times. Okay. We don’t, we don’t want to be in nbsc, which is leveraging his balance sheet five times, seven times, eight times. And then we go aggressive in picking bad loans, I mean risky loans from the market and then they eventually come back to us with NPAs, right? We don’t want to get into that trap.
Okay? We are happy, we are happy with the linear growth of like thousand crore loan book edition. But with zero npa, that is the most prime thing the old team had. The new team has, right. Right at the time when we conceptualized the idea of launching an NBA BFC okay. So, so, so, so over capitalization at two, three times. We are pretty sorted. This 300 crore, I mean investment into like multiple new business lines. It is just a broad based vision, Sangeeta. Right. This is what we may also do, right? I mean for next two years the focus is only to build supply chain books and to overachieve or surpass the guidance what we gave to our investors.
Nothing is going to happen. Like you know whatever you saw on slide 1415 it is just a broader vision. I mean the SG Fincer management board think that hey by 2030 can we have like multiple, multiple verticals. Okay. But nothing is going to move for next two years till we over, over overachieve the the targets what we have given to you.
Sangeeta Purushottam
Okay. So in that case Anubar again, you know I think it’s just con. It’s sort of confusing the picture by having these. If the plans are at the moment and you know one of your strengths has been that whatever your you guys do, you tend to be clear about operating in your areas of strength. Right? So your supply chain business is also built upon the strength of the core. Apollo, you know, apl, Apollo tubes and the what the group has. Right. So that form the core of the business. And that’s what gives you the understanding and the depth to go into this.
So you know, when you’re looking at adjacent businesses also I think it would be important to ensure that whatever you’re doing is something that you have a right to win. You know. Otherwise you could run the risk of becoming another generic kind of an NBFC with you know, no special strengths. If you just diversify too much. Because that’s what it kind of which is a little concerning, you know. So what is your strength for example to look at the ARC in aif, what are you looking at in why insurance broking? You know. So some of these questions pop up when you see this fairly disparate kind of, you know, items given on slides 14 and 15.
Anubhav Gupta
Point well noted Sangeetha. I think it is just the, I mean so just to come to your earlier point that I mean the company was started or conceptualized to become India’s leading supply chain financier. That remains. Okay, there is no change in that. And 2030, whatever loan book growth is there like bulk of that will be coming from supply chain given the group itself. I mean you are following apl Apollo and other sgmart group companies also. So the kind of business ramp up which is happening there plus the anchors, what we added the business, what our Anchors are increasing year on year, right.
So there is ample opportunity to take supply chain funding loan book to 10,000 crores by 2030. Now that’s the universe. Whether we achieve it or not, that we’ll see. Okay, but that is achievable, doable on sidelines, right? I mean when company is going to generate 5, 600 crore worth of PAT every month, every year, right. So then I mean you tend to see that what all new verticals can be built in, right. If they make sense or not. Right. There’ll be a lot of logical discussions, meetings, debates will take place between the board, the management, the promoters, right.
Only then we’ll take any step. I think it is just out of excitement. I mean the team and everyone has put these things. But I mean nothing is going to happen in next two, three years. You can mark our words.
Sangeeta Purushottam
Okay. All right. Yeah. Okay. Thanks.
operator
Thank you. Our next question is from the line of Puneet Mittal from Ebisu Investment Advisors llp. Please go ahead.
Punit Mittal
Hi. Thank you for the opportunity. I think unfortunately I will have to harp on that point because this last two con calls and especially this one is giving a lot of really mixed signals to the investor. On one side you are saying that you have changed your guidance because you want to give management time to settle. On the other side you are venturing into new business. On one side you are saying that you’re not doing anything for two, three years. But on the other side you are allocating about 30% of FY26 book which is about 400 crore to new businesses.
I think you the, and you mentioned historically that you want to be leader in supply chains, a huge market and we have not even scratched the surface then at that stage, at this stage, why, why even think about anything else? And if you do think about something else and you do have concrete plans, maybe come back to the, to the investor community with the concrete plans. So this, this unfortunately, sorry to say that but this presentation and this con call is really confusing to investor community, I would say.
Anubhav Gupta
So let me clarify, Puneet. Okay, so see, I mean the team which came in, right, the existing management team, the new management team, that is for the supply chain business, right? Its mandate is to run the supply chain book. Now in next two, three years if at all we go into new verticals. So new teams will be brought in. Not these team, not the existing team will have to run that business. Okay. Like I said, it just came out of excitement on the slide that okay, we can, this, this, this, this. But for next 23 years.
There is no plan to invest even $1 or to hire even one person who would try to start all all of this like you know what we put in. So, so I would like to reassure to each one of you that SG fincer’s mandate is to. Is to. Is to become really big in supply chain funding. Okay. Our own group requirement which right now is 8, 900 crore will become 3, 4000 crore by 2030. Right. So we need SG Finserve to be very very strong. Secondly, the anchors who got attached to us, who are working with us closely, 1520 of them, right.
They have an appetite to take loan group to another 3,4000 crore rupees and then there will be like new anchors which can be like brought in for industry. 4000 crore of loan book. So we have clear visibility that how this 10,000 crore of loan book will be created now if. If it happens by 2030, 35 or 28, that’s difficult to say. Right. But. But the ultimate goal is to. Is to reach at 10,000 crore loan book in supply chain funding. I mean now that this point has been raised again I’m on behalf of SGFINSA we are saying, we are reassuring that not even $1 of investment or hiring will be done in these initiatives.
What you so on investor slides.
Punit Mittal
Great. Thank you for assurance and as you know better than we do that the market rewards monoline leaders in NBFC a lot more than multiline. But thanks for the assurance. My second question is more on the existing business. The 30% of the non supply business. Can you give a little bit more color on that and how you plan to ramp up that business, please.
Vinay Gupta
So Puneet, 30% of our business is, you know, more on the business loans cross sell which we are doing with existing customer of ours. Because when we deal with the anchors and the dealers and the distributors their requirements in the ecosystem may not be the right borrower. But within their ecosystem the requirement comes. So when we interact with them the requirement comes in terms of financing their loan against properties, maybe business loans, maybe working capital beyond supply chain. So that is that piece.
Anubhav Gupta
So it’s within the same ecosystem. Right? Wherein the customer may not need apart from channel financing, he may require some business loan or lab. So that’s what we cater to.
Punit Mittal
How would you assure zero NPA in that segment? In that case.
Vinay Gupta
It is a highly secured business, Puneet. We either take the hard collateral or the shares. It’s a very highly secured business. In a supply chain business, natural security is the linkage between the buyer and seller. So the high pedigree anchor will be there either on the sales side or the purchase side. Here, this business, the absence of linkage is there but ecosystem is there and collateral is there. It’s highly secure business.
Punit Mittal
Okay, and my last question, if you can give us what was the average loan book for Q3?
Vinay Gupta
29, 26 crore.
Punit Mittal
Got it.
Punit Mittal
Thank you so much for all your answers and all the very best. Thank you.
Anubhav Gupta
Thank you.
operator
Thank you. Our next question is from the line of Daksh Jain from Sagun Capital. Please go ahead.
Daksh Jain
Sir, what’s the current MU standing with the anchors? And have we added any big names that this recently?
Vinay Gupta
Your voice is not very clear.
Anubhav Gupta
Sir.
Daksh Jain
What’s the current MOU standing with the anchors?
Vinay Gupta
Mou? You want to know the number A.
operator
Little more clear with the voice, Mr. Daksh Jain, please.
Daksh Jain
Am I audible now?
operator
Oh yes you are.
Daksh Jain
I’m asking what’s the MoU? The memorandum of understanding that we have in the anchors. Like the business gets promises when the. Tents get onboarded on the platform.
Vinay Gupta
The aggregate is more than 7,000 crore on a overall aggregate basis.
Daksh Jain
Okay. And sir, can you clarify like what the timeline that the MU gets converted into actual aum.
Vinay Gupta
It’s a long registration but it also depends upon the nature of the program. So it varies. But at the entire MoU may not get converted. You know it will always be lower than that because it’s a three stage. What is the MOU size then the aggregate dealer level or distributor level, limit sanction and then the overall utilization. So the three layer process. So the MOU never get consumed 100%. So that’s something I’m sure you would understand. However, any MOU once means MOU sign off.
I think the leads start getting kicked in in the first week, first fortnight itself and the build up start happening. The build up gestation generally take around a year to be at a meaningful stage of the MOU being stabilized. Then natural growth within the MOU in terms of new leads or the enhancement from the existing dealers or the enhancement of the MoU. So that’s the natural process. But the stabilization of an mou, I can say broadly it takes around a year or so.
Daksh Jain
Okay, thanks. And sir, just one request for future presentation. Can you please include the cost of. Borrowing and the yield that we are deriving the incremental, all those metrics.
Vinay Gupta
I would not be able to share that because that will give us some idea about. Because we are double A rated. Nbsp Our negotiation with our set of lenders is Different And I would not like to give that information to my peers.
Daksh Jain
Thank you.
operator
Thank you. Our next question is from the line of Kushal Jajodia from Kushal Jajodia and Associates. Please go ahead.
Kushal Jajodia
Anubhav, I spoke to you. I have one more question. So this esop, when can we expect the vesting date? Is it near at the time of the share warrants only or it will be delayed.
Vinay Gupta
No, no. Official winner here you reading it through from the the outcome of our board meeting. Right. So there’s a new policy which has been approved by board today as a new.
Kushal Jajodia
Absolutely. Got it. But can we expect the ESOP to be devised within a year? What is the. When are we deciding on that?
Vinay Gupta
So first we will go for the shareholder approval, then the revolution committee. Then we’ll decide. You know it’s far away from here.
Kushal Jajodia
Now one more question. I had. I had actually checked the financials of FY25. Okay. So there was a fixed deposit of around 30 crores. And there were mutual funds at that time. So what is the current status of the liquid cash as on date? Basically while we are speaking to you the FDs are how much is the liquid assets to the tune of lying in the FD and the Mutual Fund
Vinay Gupta
38 PR.38. What is the total liquidity we have?
Kushal Jajodia
I guess fixed deposits are lying as a margin, right?
Vinay Gupta
So the fixed deposit are lying in. In the bank. However, maybe on temporary basis we may need to use some money against the fd. But that’s not the idea.
Kushal Jajodia
It’s not the money of now, right?
Vinay Gupta
No, it is not there.
Kushal Jajodia
Great, great. Great. Okay. Thank you.
Vinay Gupta
Thank you.
operator
Thank you. Our next question is from the line of Akhilesh Kumar and individual investor. Please go ahead.
Unidentified Participant
I would like to know that since in the new four verticals what we have announced for 400 crores and the approximate new equity what we are expecting by March is 400 odd. So incrementally we are not going to have any addition of equity for lending purposes.
Vinay Gupta
As Anubhav alluded earlier also to the earlier participants today our board has approved the drawing board stage ideation about the new businesses which is at a completely drawing board stage as of now. So there’s no business plan, there’s no investment. There is a long gestation, regulatory approval, understanding the business and then narrowing down what we need to do. So there’s no plan. This is the board approved ideation which gonna be a lot of brainstorming and business planning will happen. There’s long away very Difficult to say anything. As Anabh said, we are not. We have not made up our mind to put even $1 into any of the subsidy today.
Unidentified Participant
Okay, but this is very confusing. Like say we are here 10, 20 people shareholders on the call. What about your other 8, 9,000 shareholders? You should communicate properly. Would you mind it resending a new release where you will say that these are at idea level not on we are not going to implement or not going to put money into them for next two, three years. What you are saying here, It’s a fair point.
Anubhav Gupta
Let us talk to our compliance team how we can course correct it will work on it.
Unidentified Participant
Yeah, because not me, everyone else is also interpreting the same thing. Right? The foreign cross 30 equity is going there and you are putting new things here. And just give me one idea how is the ARC business in India is doing? Are they like aligned with your zero NPA approach running the business?
Anubhav Gupta
So definitely zero npa, I mean is for. Is for supply chain funding business and ARC is a much more risky business. So like we said and again we are rehashing, reiterating, reassuring that it is just the exploration of like what SG Finserve can do in future. Okay. I mean whatever doesn’t fit our box, we will not go with it. It’s very clear.
Unidentified Participant
Yeah, it’s very clear for you and management. But for the shareholders it’s never a visibility. Either RBI license is coming or ESOP cost is coming or venturing in ideas. But you never warn us like where you want to get go take the next step. Right. Suddenly guidance has been changed and before that you are having full confidence. So this kind of communication is not going to help. You need to improve on that so that we are better prepared for that.
Anubhav Gupta
Fair enough. Will be more prudent and will improve ourselves. Promise from our side.
Unidentified Participant
Okay, that’s it. From my side. And I would hope that you give a better communication to the exchanges so that everybody else is aware of what you are thinking.
Anubhav Gupta
Definitely. Yes. Thanks so much.
Unidentified Participant
Okay, thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for their closing comments.
Vinay Gupta
Thanks everyone for joining this call. Look forward to see you again during quarter four. With all the points which were raised today, we will take care of those points and address them accordingly. Thank you.
operator
On behalf of Aquirus Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Sam.