SG Mart Q2 FY26 Results: Profit Rises 66% YoY, Revenue Up 49% QoQ

Noida, October 30, 2025: SG Mart Ltd (NSE: SGMART, BSE: 512329) made a significant recovery in the quarter ending September 30, 2025 (Q2 FY26), aided by strong growth through its B2B metal trading segment, downstream distribution operations, and renewable structures.

SG Mart Limited, formerly Kintech Renewables Ltd, is a B2B marketplace for construction materials, offering products ranging from steel coils, billets, and zinc ingots to solar mounting structures. Listed on the NSE and BSE, the company operates in Noida and serves key industries, including construction, automotive, fabrication, and renewables.

Financial Performance

The company reported net revenue of ₹17,042 million in Q2 FY26, a strong sequential (QoQ) increase of 49% but down 5% year-on-year (YoY). Profit After Tax (PAT) was ₹265 million (66% YoY), but down 18% QoQ as margins continued to be pressured by falling steel prices as well as higher operating costs associated with its new renewable energy business segment.

Business EBITDA was ₹280 million compared to ₹359 million in Q1 FY26 and ₹149 million in Q2 FY25. This is a good year-on-year growth of 88%, but a 22% decrease sequentially. EBITDA margins improved to 1.6% (up 81 bps YoY and down 150 bps QoQ).

Half-Year FY26 Overview

For the first half of FY26, SG Mart reported revenue of ₹28,480 million, reflecting a 3% year-on-year (YoY) decline. Despite the marginal dip in revenue, profitability strengthened notably, with Profit After Tax (PAT) rising 39% YoY to ₹588 million — a clear indicator of improved operational efficiency and disciplined working capital management. The company’s business EBITDA for H1 FY26 stood at ₹639 million, marking a 61% YoY increase, while EBITDA margins expanded by 89 basis points, underscoring the company’s focus on cost optimisation and margin enhancement.

Operational Performance

SG Mart reinforced its leadership as a major B2B marketplace for construction and industrial materials, supported by a robust operational network of seven service centres. The company’s product portfolio now exceeds 6,000 SKUs, serving 2,328 registered customers and 402 vendors across India.

Segmental Revenue Q2 FY26

During the September quarter, SG Mart’s service centre network delivered the highest revenue of ₹8,157 million, driven by volumes of 163,000 tons. The B2B metal trading segment contributed ₹5,434 million from 111,000 tons, while distribution products added ₹2,825 million to the topline, reflecting a balanced performance across key business divisions.

The renewable structures vertical, though relatively new, delivered ₹611 million in revenue from 8,000 tons, and the TMT (royalty model) business added ₹15 million, bringing total Q2 revenue to ₹17,042 million with total volumes of 282,000 tons.

Balance Sheet Position (as of September 30, 2025)

As of September 2025, SG Mart’s total assets rose to ₹24,742 million from ₹22,985 million at the end of FY25. Shareholders’ funds also increased to ₹15,277 million from ₹12,081 million, underscoring consistent value creation and a strengthened financial position.

The company’s debt levels declined sharply to ₹2,325 million from ₹6,890 million in FY25, while net cash rose to ₹8,516 million, compared to ₹4,558 million previously. Working capital efficiency improved notably, with working capital days reducing to 22 from 30, while Return on Capital Employed (ROCE) stood at 16% and Return on Equity (ROE) at 9%, both annualised for H1 FY26.

Management Commentary

Amit Thakur, Executive Director, SG Mart Ltd, said: “Our team has delivered strong sequential growth in Q2 FY26, reflecting improved traction across our core steel trading, downstream steel products, and renewable structures segments. While revenue growth remains robust, margins were impacted by softer steel prices and cost absorption linked to the renewable business.”

Share Price Update

The share price of SG Mart Ltd traded slightly lower on Thursday, closing at ₹360.05, down 2.60%. The stock opened at ₹370.95 and touched an intraday high of ₹376.00 before retreating to a low of ₹355.00. At the close of the session, the company’s market capitalisation stood at ₹4,540 crore. Over the past year, SG Mart’s shares have moved within a 52-week range of ₹334.00 to ₹389.55, reflecting steady investor interest despite short-term fluctuations.

REF: https://nsearchives.nseindia.com/corporate/SGMART_30102025144933_InvestorPresentationandPressReleaseQ2.pdf

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