SG Mart · tone and specificity signals across the available quarters.
Language signals
We have not been able to walk the talk... please do trust us that we are working day and night to ensure that whatever we send, we don't miss on that in the long term. It's just that some short-term pain we thought better to take and focus on the businesses which will give us desired profitability.
Definitely, it is now difficult to achieve 200 crore EBITDA for FY26 because Q2 was pretty much below expectations in terms of margin spreads... Q4 should be the exit run rate which will give the true color of what SG Mart can do.
Give us just Q3, and from Q4 onward you will see the real performance, the real strength of our business model and the consistency of these profits quarter on quarter because the businesses which are being built like service center and open profile renewable structures are very stable business with less volatility.
We are not scared of Rs 17 crore EBITDA which we reported for the third quarter because the actual business EBITDA was Rs 40 crore for the third quarter.
With all the confidence and conviction we are talking about these financial numbers. FY27 there could be like 100% jump with the business model which I explained where we don't see much of a challenge.
Our internal understanding says that at roughly 150 crores of IITDA level, [inventory losses] become pretty insignificant. So at 350 crore we hit in FY27, we should be fairly okay.
50 crore quarterly EBITDA is the new floor… we are confident that we should be near that [₹300-350 crore annualized FY27] number unless there is more loss of business due to war in our B2B business or in our Middle East operations.
We realized that [B2B] trading business is not throwing too much value addition… the dependency on steel level availability is pretty high… the steel price fluctuation also hurts the earnings. So over the last one year the whole business model has moved towards more value addition.
Whatever new business vertical I'm adding it is more profitable… so even if there is no 50% growth in revenue, my EBITDA can still grow more than 50%. Because whatever new business vertical I'm adding it is more profitable.