SG Mart Ltd — Updates, 21-05-2025: Company Update

SG Mart Limited has announced a board meeting to consider the financial results for the quarter and half-year. The company reported INR5,800 crores revenue with INR103 crores EBITDA and net profit for FY '25, marking its first full year of operations since 2023. SG Mart operates four verticals: B2B steel trading, service centers (five operational across India and Dubai, with plans to add more), solar structures sold under the brand Sun Steel, and a distribution business focusing on TMT and light structural products. The company expects EBITDA to double to INR200 crores in FY '26 and reach INR400 crores in FY '27, driven by volume growth and margin expansion, particularly from service centers and a royalty-based TMT model. Capex of around INR600 crores over 3-4 years is primarily for expanding service centers, funded entirely from operating cash flows. Working capital improved from 30 to an expected 10-15 days, ensuring healthy liquidity. The solar business involves minimal capex and could deliver higher ROCE. SG Mart aims to capitalize on rising domestic steel capacity and expand its customer base, with focused tie-ups with four of the six top Indian steel mills. The company’s growth outlook remains robust, targeting 50% volume and revenue growth year-on-year across verticals, with a strong emphasis on operational efficiency and cash flow management.