SG Mart Ltd — Important, 03-11-2025: Company Update

SG Mart Limited experienced a challenging Q2 FY26, reporting revenue exceeding 1,700 Cr, a 50% increase quarter-on-quarter. The service center business contributed 50% of revenue with seven operational centers, planning an eighth in Q4. B2B metal trading also grew 50% Q-o-Q, making up 30% of revenue. The renewable structure segment accounted for 4%, backed by a 260 Cr order book. Margins were pressured by a sharp ~INR 3,000/ton steel price decline, leading to inventory losses, alongside pre-booked branding and upfront costs for new profiling businesses. While the 200 Cr FY26 EBITDA target is now challenging, management anticipates Q4 will reflect true profitability from stabilizing steel prices and scaling high-margin segments, maintaining the 20-25% ROCE target.