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:
Shreepal Doshi — Analyst
Sucrit Patil — Analyst
Kushal Jajodia — Analyst
Shashank Jha — Analyst
Shubham — Analyst
Sangeeta Purushottam — Analyst
Punit Mittal — Analyst
Daksh Jain — Analyst
Akhilesh Kumar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the SG Finserve Q3 FY ’26 Conference Call, hosted by Equirus Securities. [Operator Instructions]
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. Shreepal Doshi from Equirus Securities. Thank you and over to you, Mr. Shreepal.
Shreepal Doshi — Analyst
Thank you, Rudra. Good evening, everyone. We welcome you all to the earnings conference call of SG Finserve to discuss the Q3 FY ’26 performance of the company. Today, we have the management of the company represented by Mr. Vinay Gupta, CEO; Mr. 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, Sorabh Dhawan, for laying a strong foundation of SG Finserve 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 your NBFC has delivered excellent financial and operational performance during the Q3 and the nine-month ending December ’25. We have achieved an all-time-high loan book of INR3,210 crores as on December 31, registering quarter-on-quarter growth of 12%. At the same time, our profitability perspective, profit after tax for Q3 stand at INR32 crores, reflecting quarter-on-quarter growth of 15%. For the nine months ended December, our PAT was INR85 crores with 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, RBI has granted us license to commence our factoring business, which further strengthen our supply chain financing offering. Operationally, we remain a very highly disciplined NBFC with cost-to-income ratio of less than 15%, nil NPAs. We have delivered return on assets 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 INR1,100 crores and a conservative leverage of nearing 2 times, which provides us 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 INR7,500 crores by March 2030. However, on the profitability perspective, the CAGR would be around 30% during the same period, so that we achieve INR500 crores kind of PBT in FY ’30, which will translate to return on assets of around 5% and return on equity of around 15%.
Our strategy is centered around deepening and widening, where we will strengthen our relationship with 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, today, the 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 completely in 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 SG Finserve. Thank you, everyone. Over to you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions]
The first question is from the line of Sucrit D. Patil 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 Finserve 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, Sucrit, 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. The 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 the Tier 2 dealer 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. 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 supply chain factoring-based business. As of today, we are not looking to enter into retail financing.
Sucrit Patil
Okay. And my second question is to Mr. Sanjay. With strong capital adequacy and a growing NBFC footprint, 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? Perfect. Yeah. Thank you.
Vinay Gupta
So, I’ll only take that question, Sucrit, if you allow. Vinay here. So, currently, our leverage is 2 times, okay, with INR1,100 crore of equity. Another equity of INR388 crore is already due, which is coming to terms. With few approvals for the Q4 put together, I think we are looking to have an equity base of somewhere between INR1,450 crore to INR1,500 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 2 times is the only leverage we have planned. However, as part of our Board approvals, we already have INR5,000 crore borrowing plans 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. From a 2 times to 3 times, 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, Sucrit.
Operator
Thank you. Our next question is from the line of Kushal Jajodia from Kushal Jajodia & Associates. Please go ahead.
Kushal Jajodia
Hi, management. Hi, team. So, my question is for Anubhav Gupta ji. 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 there 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
Anubhav, I wanted the guidance for FY ’27 and ’28. So, the thing is FY ’26-’27, you have clear cut given the guidance of INR6,000 crore AUM. And in the investor presentation which we got it today, March 30, we are predicting AUM of INR7,500 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, every year, we are predicting to add, like, INR1,000 crores AUM. So, post 2026-’27, from INR6,000 crores, why we are lowering it to INR500 crores 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 II license, which put the company behind by six to eight months, okay? So, that’s the reason that why this guidance 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 INR3,500 crores. And then, every year, we’re going to increase it by INR1,000 crores, not INR500 crores. So…
Kushal Jajodia
No, because our guidance for ’25-’26 is INR6,000 crores AUM, right?
Anubhav Gupta
’26-’27 was for INR6,000 crore.
Kushal Jajodia
’26-’27. Sorry. Sorry.
Anubhav Gupta
Yeah. So, now…
Kushal Jajodia
And in the investor presentation of March 30 is given INR7,500 crores. So, on an average, from FY ’27 onwards, basically, we are predicting on an average only INR500 crore AUM will be added.
Anubhav Gupta
INR1,000 crores, no — every year, INR1,000 crores, INR1,000 crores is getting added.
Vinay Gupta
Okay. You are assuming that March ’27 continue to be INR6,000 crores. That’s why you’re calculating INR500 crore. But that’s not the case. March ’27 also, we have lowered down.
Anubhav Gupta
Right. So, we are talking about 20% CAGR, okay, from March ’26 to March ’30, we are talking about 21% CAGR, right? So, see, I mean, please understand that SG Finserve, 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, there is no harm in upgrading the guidance, right?
Now, I’m sure you’ll be following APL 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 ’26 more than INR3,500 crores, or maybe we achieve INR4,500 crores within 2026 calendar year. So, if that happens, then, I mean, it just takes like 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 AIF you are trying to open as a subsidiary? What will the AIF do?
Anubhav Gupta
So, this is a very broad based idea, right? I mean, 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 INR4,500 crore loan book in next 12 months. That’s the idea.
Kushal Jajodia
Okay. Okay. Thank you so much, Anubhav.
Operator
Thank you. [Operator Instructions] 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 previous participant. Thank you.
Operator
Thank you. Our next question is from the line of Shubham [Phonetic], an individual investor. Please go ahead.
Shubham
Hey. Hello, sir. Are you able to hear me? Hello?
Operator
Yeah. Hello?
Anubhav Gupta
Yeah, please go ahead.
Shubham
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 one and a half 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 INR1,000 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 INR1,000 crore. Either it should start from INR600 crore and then go to INR1,500 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, INR1,000 crore per year AUM, that doesn’t actually make sense, to be very honest, right? Like, size of organization will change, everything will change. And why this INR1,000 crore linear number year after year?
Anubhav Gupta
So, let’s split this question into two parts. One is that what went wrong in revising the guidances, right, continuously in last two and a half years. 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 INR2,000 crore loan book, we had to bring it down to INR1,200 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 seven, eight 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 guidance, etc. But now, it’s fairly stable, right? I mean, whether the RBI license and the new management, which has taken charge. So, the guidance, again — I mean, it’s just like two months, Vinay and 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, INR1,000 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 we are going to stick to it, okay?
First idea is that — I mean, see, growth from INR3,500 crore to INR4,500 crore is 33%, okay? If we achieve 33% loan book growth, right, by March ’27 or if we are able to achieve it, say, by December ’26, it gives us confidence, hey, next year let’s aim for INR6,000 crores or INR6,000 crores plus and then maybe INR8,000 crores and maybe INR10,000 crores, not only INR7,500 crores by FY ’30. This was our original Plan to reach INR10,000 crore by 2030 when we have started the company in 2022. So, INR10,000 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 NBFC that we have learned from 2020 to 2026 now, more than three years that INR50,000 crores, INR60,000 crores of gross disbursement what we have done, we are sitting on zero NPAs. It’s very easy to say that, hey, I can grow a INR2,000 crore, INR3,000 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 let’s…
Shubham
Then, 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…
Anubhav Gupta
Yeah, it’s a fair point that we could have given guidance for say two years. I mean, we will — I mean…
Shubham
Yeah, because it will set — yeah, it will take the maybe bar too low for your team also, right? Like, that is also one more perspective. Like…
Anubhav Gupta
Also, this is — the bar [Speech Overlap]…
Shubham
Yeah. Like, 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, 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 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 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, 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. Thanks. Yeah. Your next question, please.
Shubham
Okay. Sir, my question is, like, that factoring business, right, that is a big business that you got the license for. The industry size is big for that. And we are also in very nascent stages of that industry, right? So, does this guidance also include that factoring business? Have we thought about that, or do we — are we doing some internal planning around that factoring business? Like, what can be the profit 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. 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 baby steps and then build and learn — learn and build.
Shubham
Yes, sir. Thank you. Thank you for your answers and patience, sir. Thank you.
Vinay Gupta
Thank you, Shubham.
Operator
Thank you. Our next question is from the line of Sangeeta Purushottam from Cogito Advisors. Please go ahead.
Sangeeta Purushottam
Yeah. Hi. Am I audible?
Vinay Gupta
Yes, Sangeeta, you are.
Sangeeta Purushottam
Okay. So, actually my questions also relate to the guidance as well as two Slides 14 and 15. Now, 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
Sangeeta, Anubhav here. Yeah. So, you can say that yes, right, because the growth plan which the earlier team was running, right, 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 strength of our group, right? And that’s how we scaled up SG Finserve from October ’22 when we started the business, right? So, it’s 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 accelerate, maybe, like not immediately, after six months. That’s all.
Sangeeta Purushottam
Okay. So, see the first point that you mentioned about that — about the license which was revoked and which came back. That’s history, right? Whatever guidance you had given, the INR4,000 crores…
Anubhav Gupta
A year back, Sangeeta. That was only a year back.
Sangeeta Purushottam
Yeah. No, I understand. But if you look at your last two presentations, which have happened after that issue got sorted out, you were still giving a guidance of INR4,000 crores AUM and INR6,000 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, right?
Anubhav Gupta
Change in the management, yes.
Sangeeta Purushottam
So, that’s the incremental change, and because — 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
So, let me clarify, Sangeeta. It’s only because of the management. No other reason. I mean, like I said, we can still close FY ’26 — March ’26 at INR4,000 crores.
Sangeeta Purushottam
Okay. So, it’s mainly to allow the new management team to settle in?
Anubhav Gupta
Yes.
Sangeeta Purushottam
Okay. Then, in that case, 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 FY ’30 guidance of INR7,500 crores. I mean, you don’t know what’s going to happen in the next 12 months, so why are you giving a guidance for FY ’30, 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 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 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 INR300 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 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 INR450, it’s family, right, we’re going to put in through some investors, we have their commitment also, right? But three months back, the stock price was at like INR350, right? So, one would wonder, like, whether the external money would come at INR450 or not. But we know that it would and we got the commitments, okay?
So, after that money coming in like — 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 INR1,500 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 2.5 times, 3 times, okay? We don’t want to be an NBFC, which is leveraging its balance sheet 5 times, 7 times, 8 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 with the linear growth of, like, INR1,000 crore loan book edition, but with zero NPA. That is the most prime thing the old team had, the new team has, right, at the time when we conceptualized the idea of launching an NBFC, okay?
So, over-capitalization at 2 times, 3 times, we are pretty sorted. This INR300 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, whatever you saw on Slide 14, 15, it is just a broader vision. I mean, the SG Finserve management, Board think that, hey, by 2030, can we have like multiple verticals, okay? But nothing is going to move for next two years till we overachieve the targets what we have given to you.
Sangeeta Purushottam
Okay. So, in that case, Anubhav, again, I think it’s just — it’s sort of confusing the picture by having these — if the plans are not very clear at the moment. And one of your strengths has been that whatever 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 — APL Apollo tubes and what the group has, right? So, that formed the core of the business and that’s what gives you the understanding and the depth to go into this.
So, 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. Otherwise you could run the risk of becoming another generic kind of an NBFC with no special strengths, if you just diversify too much, because that’s what it kind of — which is a little concerning. So, what is your strength, for example, to look at the ARC? In AIF, what are you looking at? And why insurance broking? So, some of these questions pop up when you see this fairly disparate kind of items given on Slides 14 and 15.
Anubhav Gupta
Point well noted, Sangeeta. 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 SG Mart 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 INR10,000 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 INR500 crores, INR600 crores 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 Punit 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 these 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 FY ’26 book, which is about INR400 crore, to new businesses.
I think you — and you mentioned historically that you want to be leader in supply chain, it’s a huge market, and we have not even scratched the surface. Then, at this stage, 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 investor community with the concrete plans. So, 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, Punit, 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 teams — 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 do this, this, this, this. But for next two, three years, there is no plan to invest even $1 or to hire even one person who would try to start all of this, like, what we put in. So, I would like to reassure to each one of you that SG Finserve’s mandate is to become really big in supply chain funding, okay? Our own group requirement, which right now is INR800 crores, INR900 crore will become INR3,000 crore, INR4,000 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, 15, 20 of them, right, they have an appetite to take loan group to another INR3,000 crore, INR4,000 crore, and then there will be like new anchors which can be, like, brought in for another INR3,000 crore, INR4,000 crore of loan book. So, we have clear visibility that how this INR10,000 crore of loan book will be created. Now if it happens by 2030, ’35 or ’28, that’s difficult to say, right? But the ultimate goal is to reach at INR10,000 crore loan book in supply chain funding. I mean, now that this point has been raised again, I’m — on behalf of SG Finserve, we are saying — we are reassuring that not even $1 of investment or hiring will be done in these initiatives what you saw 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, Punit, 30% of our business is 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 direct 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 LAP, 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, Punit. 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 a 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
INR2,926 crore.
Punit Mittal
Got it. Thank you so much for all your answers and all the very best. Thank you.
Vinay Gupta
Thank you, Punit.
Operator
Thank you. Our next question is from the line of Daksh Jain from Sagun Capital. Please go ahead.
Daksh Jain
Sir, what’s our current MOU standing with the anchors? And have we added any big names recently?
Vinay Gupta
So, Daksh, your voice is not very clear. It’s echoing.
Daksh Jain
Sir, what’s the current MOU standing with the anchors?
Vinay Gupta
MOU? You want to know the numbers?
Operator
Be a little more clear with the voice, Mr. Daksh Jain, please.
Daksh Jain
Am I audible now? Hello?
Operator
Yes, you are.
Daksh Jain
Sir, I’m asking what’s the MOU, the memorandum of understanding, that we have with the anchors. Like, the business they promised us when their brands get onboarded on the platform.
Vinay Gupta
The aggregate is more than INR7,000 crore on an overall aggregate basis.
Daksh Jain
Okay. And sir, can you clarify, like, what the timeline that the MOU gets converted into actual AUM?
Vinay Gupta
It’s a long gestation, but it also depends upon the nature of the program. So, it varies. But at the entire MOU may not get converted. 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, it’s 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 an 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, and 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 AA rated NBFC. Our negotiation with our set of lenders is different, and I would not like to give that information to my peers.
Daksh Jain
Okay, sir. Thank you.
Operator
Thank you. Our next question is from the line of Kushal Jajodia from Kushal Jajodia & 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. Kushal, Vinay here. You’re reading it through — from 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 Board meeting — when are we deciding on that?
Vinay Gupta
So, first, we will go for the shareholder approval, Kushal. Then, we’ll go to the revolution committee. Then, we’ll decide. It’s far away from here now.
Kushal Jajodia
One more question I had. I had actually checked the financials of FY ’25, okay? So, there was a fixed deposit of around INR30 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 — how much is the liquid assets to the tune of lying in the FD and the mutual fund?
Vinay Gupta
INR38 crores. INR30 crores is FD and INR8 crores is mutual fund.
Kushal Jajodia
Both of them, right, sir?
Vinay Gupta
INR38 crores total liquidity we have currently.
Kushal Jajodia
I guess, fixed deposits are lying as a margin, right?
Vinay Gupta
So, the fixed deposits are lying in the bank. However, maybe on temporary basis, we may need to use some money against that FD. But that’s not the idea. It’s not the…
Kushal Jajodia
And mutual funds are not there as 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, an individual investor. Please go ahead.
Akhilesh Kumar
I would like to know that since in the new four verticals what we have announced for INR400 crores and the approximate new equity what we are expecting by March is INR400 crores odd. So, incrementally, we are not going to have any addition of equity for lending purposes?
Vinay Gupta
Akhilesh, Vinay here. 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 — it’s 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 is going to be — a lot of brainstorming and business planning will happen. That’s long away, very difficult to say anything. As Anubhav said, we are not — we have not made up our mind to put even $1 into any of the subsidy today.
Akhilesh Kumar
Okay. But this is very confusing. Like, say, we are here 10, 20 people — shareholders on the call, what about your other, say, 8,000, 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?
Anubhav Gupta
It’s a fair point. Let us talk to our compliance team how we can course correct it, we’ll work on it.
Akhilesh Kumar
Yeah, because not me, everyone else is also interpreting the same thing, right? INR400 crores, 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 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.
Akhilesh Kumar
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 — take the next step, right? Suddenly, guidance has been changed. And before that, you were 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. We’ll be more prudent and will improve ourselves. Promise from our side.
Akhilesh Kumar
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.
Akhilesh Kumar
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.
Anubhav Gupta
Thanks everyone for joining this call. Look forward to see you again during quarter four earnings call. With all the points which were raised today, we will take care of those points and address them accordingly. Thanks.
Operator
[Operator Closing Remarks]