SG Mart Limited — Investor Meet, 22-07-2026: Analysts/Institutional Investor Meet/Con. Call Updates

SG Mart Limited held a conference call to discuss its Q1 FY27 earnings. Management highlighted sustained revenue and profitability, driven by a business model evolving from trading to manufacturing. The company is focusing on five pillars: manufacturing, branding, distribution, service centers, and an online marketplace, with 10 new products launched and 7 in the pipeline.

**Financial Performance:**

The company noted strong performance in steel profiles and renewable structures, with EBITDA per ton in these segments currently ranging from INR3,000 to INR4,000. Profitability for service centers is around INR2,000 per ton. Future EBITDA per ton for steel profiles and renewables is projected to reach INR6,000-INR7,000 post backward integration. While Q1 FY27 saw a dip in service center volume QoQ due to seasonality, it grew YoY.

**Management Commentary & Outlook:**

SG Mart is expanding its service center network, aiming for 25 centers by 2029. Backward integration for coated steel is underway in Raipur, expected to be operational in 18 months. This will reduce reliance on third-party suppliers and improve margins. The company plans to invest INR1,500 crores in capex over the next 2-3 years, funded by existing cash and operating cash flow, with no new capital raising anticipated. The outlook remains bullish on product pipeline and new categories like contract manufacturing.

**Operational Updates:**

The company has a current installed capacity of 400,000 tons for steel profiles and renewable structures, with Q1 volumes at 30,000 tons. By 2030, SG Mart targets a significant scale with a vision for 4-4.5 million tons of value-added products.

**Analyst Q&A Highlights:**

Analysts inquired about customer concentration, with management stating a wide customer base across segments and minimal risk. Discussions also covered execution risks, which were deemed low due to established plans and experience. The structural shift towards higher-margin products like steel profiles and renewable structures was emphasized as a driver for improved EBITDA margins, not inventory gains. Concerns about contract manufacturing impacting ROCE were addressed, with management assuring that no vertical would dilute ROCE below 20%.

**Investor Angle:**

Management expressed confidence in achieving their growth targets, though cautioned about potential disruptions from geopolitical events. The focus remains on expanding value-added products and strengthening their manufacturing and distribution capabilities.