SGMART - SG Mart
📢 Recent Corporate Announcements
SG Mart Limited has responded to a clarification request from the National Stock Exchange regarding a significant increase in trading volume. The company stated that all material information has been disclosed in compliance with SEBI (LODR) Regulations, 2015. They confirmed there is no pending information or announcement that could have a bearing on the price or volume behavior of the scrip. This response is a standard regulatory filing following an exchange surveillance query.
- NSE issued a surveillance query on February 9, 2026, regarding a spurt in trading volume.
- SG Mart submitted its formal response on February 10, 2026, denying any undisclosed developments.
- The company reaffirmed its commitment to Regulation 30 of SEBI (LODR) for timely disclosures.
SG Mart reported a Q3 FY26 business EBITDA of ₹40 crores, though reported EBITDA was ₹17 crores due to a ₹20 crore inventory loss from falling steel prices. The management has provided a strong growth outlook, targeting a business EBITDA of ₹60 crores in Q4 FY26 and over ₹350 crores for FY27. Expansion is on track with 5 new service centers planned for FY27 and a long-term goal of 20 centers by FY29. The company maintains a healthy cash position of approximately ₹880-900 crores to fund its aggressive expansion in renewable structures and metal trading.
- Reported Q3 EBITDA of ₹17 Cr was impacted by a ₹20 Cr inventory loss; underlying business EBITDA stood at ₹40 Cr.
- Management projects FY27 EBITDA to reach ₹350 Cr+, representing a potential 150% growth over FY26 estimates.
- Service center network to expand from 5 to 10 in FY27, with a long-term goal of 20 centers by FY29.
- Renewable structures segment saw 17,000 tons in Q3, with Q4 volume expected to rise to 25,000 tons.
- Strong balance sheet with ~₹900 Cr cash and working capital maintained at 27 days.
SG Mart Limited has released the audio recording link for its investor and analyst conference call held on January 23, 2026. The call focused on the company's unaudited financial results for the third quarter and the nine-month period ending December 31, 2025. This disclosure is part of the company's regulatory compliance under SEBI Listing Obligations. Investors can access the recording on the company's website to hear management's detailed commentary on business operations.
- Conference call held on January 23, 2026, at 4:00 PM IST to discuss Q3 results.
- Recording covers financial performance for the nine-month period ended December 31, 2025.
- Link provided as per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Recording is hosted on the company's official investor relations website for public access.
SG Mart reported a 23% YoY increase in revenue to Rs 16.4 Bn for Q3FY26, though performance was weak on a sequential basis with a 4% QoQ revenue dip. Profitability faced significant pressure as Net Profit plummeted 62% YoY to Rs 107 Mn, and EBITDA margins compressed to just 1.0% from 2.3% a year ago. The company is currently in an expansion phase, targeting a 50% CAGR over the next three years by scaling its service center network and renewable structures business. Despite the margin contraction, the company maintains a strong liquidity position with Rs 7.4 Bn in net cash.
- Revenue grew 23% YoY to Rs 16.4 Bn, but EBITDA fell 40% YoY to Rs 167 Mn.
- Net Profit margin declined significantly to 0.7% compared to 2.15% in the same quarter last year.
- Network of Service Centres volume reached 164k Tons in Q3FY26, becoming a major volume driver.
- Maintains a strong net cash position of Rs 7.4 Bn as of December 31, 2025.
- Company targets adding 5-7 new service centers annually to drive a 50% CAGR over 3 years.
SG Mart reported a 23% YoY increase in revenue to Rs 16,444 million for Q3 FY26, though revenue dipped 4% on a sequential basis. Profitability faced significant pressure as EBITDA fell 40% YoY to Rs 167 million, with margins shrinking to 1.0% from 1.6% in the previous quarter. Net profit also saw a sharp decline of 62% YoY to Rs 107 million. Despite the margin compression, the company maintains a strong net cash position of Rs 7.4 billion and is targeting a 50% CAGR over the next three years through expansion in its service center network and renewable structures.
- Q3 FY26 Revenue grew 23% YoY to Rs 16,444 million, while Net Profit slumped 62% YoY to Rs 107 million.
- EBITDA margins contracted significantly to 1.0% in Q3 FY26 compared to 1.6% in Q2 FY26 and 2.4% in Q4 FY25.
- The company currently operates 7 service centers with a target to add 5-7 centers annually to reach a 50% CAGR over 3 years.
- Net cash position remains robust at Rs 7.4 billion as of December 31, 2025, providing a buffer for expansion.
- Registered customer base reached 2,340 with 438 registered vendors, indicating growing platform scale.
SG Mart Limited reported a consolidated revenue of ₹1,644.43 crore for Q3 FY26, marking a 23% growth compared to ₹1,334.71 crore in the same quarter last year. However, the company's net profit witnessed a significant decline of 61.5% YoY, falling to ₹10.78 crore from ₹28.04 crore. On a sequential basis, revenue dipped by 3.5% while profits plummeted by 65.7% from ₹31.41 crore in Q2 FY26. The sharp drop in profitability is largely due to a substantial increase in total expenses, which rose to ₹1,651.55 crore during the quarter.
- Consolidated revenue for Q3 FY26 stood at ₹1,644.43 crore, up 23% YoY but down 3.5% QoQ.
- Net profit for the quarter fell sharply to ₹10.78 crore from ₹28.04 crore in Q3 FY25.
- Total expenses surged to ₹1,651.55 crore in Q3 FY26 compared to ₹1,280.55 crore in Q3 FY25.
- Basic Earnings Per Share (EPS) declined to ₹0.85 from ₹2.11 in the year-ago period.
- For the nine-month period ended Dec 31, 2025, the company recorded a total income of ₹4,549.83 crore and a net profit of ₹71.11 crore.
SG Mart Limited has scheduled a conference call on Friday, January 23, 2026, at 4:00 PM IST to discuss its financial results for the third quarter and nine-month period ended December 31, 2025. The call will be hosted by Motilal Oswal Financial Services and will feature a broad range of senior management, including the CFO and heads of B2B Metal Trading and Renewables. This interaction provides investors with a platform to understand the company's operational performance and strategic progress. The management team will address queries regarding the Q3FY26 financial statements and future outlook.
- Conference call scheduled for January 23, 2026, at 4:00 PM IST to discuss Q3FY26 results.
- Management representation includes CFO Suraj Kumar and Group Chief Strategy Officer Anubhav Gupta.
- Discussion will cover diverse business segments including B2B Metal Trading, Renewables, and Distribution.
- International dial-in facilities are available for investors in the USA, UK, Singapore, and Hong Kong.
SG Mart Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that for the quarter ended December 31, 2025, all dematerialization requests were processed within the mandatory 15-day timeline. The company's Registrar and Share Transfer Agent, MCS Share Transfer Agent Limited, verified that physical certificates were mutilated and cancelled. This ensures that the register of members is accurately updated with the depositories as the registered owners.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Dematerialization requests were confirmed and processed within the 15-day regulatory window.
- Physical security certificates were mutilated and cancelled after due verification by the RTA.
- Registrar and Share Transfer Agent confirmed as MCS Share Transfer Agent Limited.
SG Mart Limited has officially announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the company's unaudited financial results for the quarter and nine-month period ending December 31, 2025. The restriction applies to all designated persons and their immediate relatives to prevent any potential insider trading. The window will remain closed until 48 hours after the financial results are made public.
- Trading window closure effective from Thursday, January 1, 2026
- Closure pertains to financial results for the period ending December 31, 2025
- Restriction ends 48 hours after the official declaration of unaudited financial results
- Applies to all designated persons and their immediate relatives under SEBI regulations
- Board meeting date for result approval to be announced in due course
Financial Performance
Revenue Growth by Segment
B2B Metal Trading: 30% of Q2 FY26 revenue (grew 50% QoQ); Service Center Business: 50% of Q2 FY26 revenue; International/Renewable: 17% of Q2 FY26 revenue. Total revenue for FY25 was INR 5,856.17 Cr, up 118.2% YoY from INR 2,682.90 Cr in FY24.
Geographic Revenue Split
India: ~92% of total revenue; UAE: ~8% (INR 473.84 Cr generated by Dubai-based subsidiary SG Marts FZE in FY25).
Profitability Margins
FY25 Net Profit Margin: 1.76% (INR 1,034 Mn PAT on INR 58,561 Mn revenue). PAT grew 69.8% YoY from INR 609 Mn in FY24. Q2 FY26 PAT was INR 265 Mn, up 66% YoY but down 18% QoQ due to steel price declines and upfront branding costs.
EBITDA Margin
EBITDA Margin: 1.8% in FY25, down from 2.3% in FY24. The moderation was driven by lower steel prices and increased expenses related to business expansion. H1 FY26 EBITDA increased 61% YoY despite margin pressure.
Capital Expenditure
Planned Capex: INR 170-200 Cr for the expansion of service centers and the newly started renewable structures business.
Credit Rating & Borrowing
Credit Rating: CRISIL Stable. Interest coverage ratio: 8.04x in FY24. Sanctioned bank limits of INR 600 Cr were only 26% utilized as of June 2024.
Operational Drivers
Raw Materials
Steel (HR coils, CTL HR coils, and TMT bars) represents the primary cost of goods sold, estimated at >90% of revenue for the trading segment.
Import Sources
UAE (Dubai) via SG Marts FZE; approximately 20% of products are imported to serve international and domestic demand.
Key Suppliers
Major steel companies (specific names not disclosed in available documents). Top supplier accounts for ~15% of total purchases.
Capacity Expansion
Current: 7 operational service centers (5 owned, 2 leased). Planned: Adding 1 in Jaipur in Q4 FY26 and 4-6 additional centers annually to reach dozens pan-India within 3-4 years.
Raw Material Costs
Raw material costs are highly sensitive to steel prices, which declined by ~INR 3,000 per ton in Q2 FY26, leading to inventory losses and margin compression.
Logistics & Distribution
Distribution network includes 220+ dealers and 402 vendors serving 2,328 customers pan-India.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
Expansion of the service center network (adding 4-6 annually), scaling high-margin renewable and open profile structures, and transitioning TMT bars to a royalty-based franchisee model (INR 500-600 per ton) to reduce capital employment.
Products & Services
HR coils, CTL HR coils, TMT bars, renewable structures, open profile structures, and over 1,700 building products.
Brand Portfolio
SG Mart, SG.
New Products/Services
Renewable structures and open profile structures, which offer higher spreads and insulate the company from short-term steel price volatility.
Market Expansion
Targeting pan-India presence with a new service center in Jaipur (Q4 FY26) and dozens more planned over the next 3-4 years.
Strategic Alliances
TMT Franchisee partners who produce and sell under the SG brand in exchange for royalty payments.
External Factors
Industry Trends
Growing B2B construction materials marketplace; shift toward organized players providing one-stop solutions for construction needs.
Competitive Landscape
Intense competition from emerging B2B platforms challenges market share and pricing flexibility.
Competitive Moat
Durable advantage through a distribution network of 220+ dealers and 2,328 customers, providing a one-stop solution for 1,700+ products. Sustainability is driven by scale and efficient working capital (22 days).
Macro Economic Sensitivity
India's FY26 GDP growth projected at 6.3%–6.8% supports demand; GST collections up nearly 10% reflect healthy construction activity.
Consumer Behavior
Increasing demand for organized B2B marketplaces that offer product variety and reliable supply chain fulfillment.
Geopolitical Risks
Geopolitical risks and trade disruptions are cited as measured outlook factors for FY26 growth.
Regulatory & Governance
Industry Regulations
Frequent changes in construction-related regulations pose risks to operational stability and financial performance.
Taxation Policy Impact
Effective tax rate is approximately 25% based on FY25 PBT of INR 137.32 Cr and PAT of INR 103.4 Cr.
Risk Analysis
Key Uncertainties
Steel price volatility (High impact); intense competition in trading (Low margin risk); and potential IT system failures/cyber-attacks.
Geographic Concentration Risk
Revenue is primarily concentrated in India (92%), with a growing presence in the UAE (8%).
Third Party Dependencies
Moderate dependency on top suppliers (15% of purchases) and major steel companies for product sourcing.
Technology Obsolescence Risk
Over-reliance on technology for the B2B marketplace poses threats from system failures; mitigated by backup protocols and disaster recovery plans.
Credit & Counterparty Risk
Low risk; debtor days are less than 10 and top customers represent only 5.3% of revenue.