SGMART Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
₹1,644 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹17 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
SG Mart reported a challenging Q3 FY26 with reported EBITDA of Rs 17 crore, though management clarified underlying business EBITDA was Rs 40 crore after adjusting for a Rs 20 crore inventory loss due to sharp steel price correction of Rs 2,500-3,000 per tonne. The company operates four business pillars: service centers (163,000 tonnes volume in Q3), B2B metal trading (125,000 tonnes), renewable structures (17,000 tonnes), and open profile structures (new launch). Service center IITDA was compressed to Rs 1,500/tonne versus normal Rs 2,000/tonne due to declining prices and demand weakness. Management targets Rs 60 crore business EBITDA in Q4 FY26 and Rs 350 crore for FY27, implying significant margin expansion as new service centers ramp up and higher-margin renewable/structure businesses scale. The company maintains Rs 800 crore cash on books despite aggressive expansion plans. Risk includes dependency on steel price stability and execution of 20-location expansion within stated timelines.
Colored figures show movement against the previous available record.
Guidance to track
- Management projects 50% sequential increase from Rs 40 crore underlying EBITDA in Q3, driven by margin normalization (IITDA returning to Rs 2,000/tonne in service centers, Rs 900-1,000/tonne in B2B) and volume growth in renewable structures to 25,000 tonnes.
- Full year guidance of Rs 350 crore represents 150% growth over estimated FY26 Rs 140 crore. Breakdown: Rs 200 crore from service centers (750,000 tonnes at Rs 2,000 IITDA + Dubai Rs 50 crore), Rs 50 crore from B2B, Rs 100-150 crore from structures.
- Full year FY26 EBITDA guidance of Rs 140 crore versus Rs 103 crore in FY25, implying approximately 35-40% growth despite Q3 weakness. This will be validated in Q4 results.
- Land acquisition underway for 10 additional locations beyond the 5 new ones planned for FY27. Management targets all 20 operational by end of FY28/FY29, with 8,000-9,000 tonnes monthly volume per center at Rs 2,000 IITDA.
Risks flagged
- Q3 FY26 demonstrates the material impact of sharp steel price corrections on reported earnings. While management targets Rs 350 crore EBITDA by FY27, any 15-20% steel price crash could jeopardize these targets. The analyst raised concern about ongoing government capex slowdown affecting construction demand.
- Jaipur center was delayed by 2-3 months due to excessive rains. Management has announced aggressive 20-center expansion plan but hasn't provided detailed capex budget or land acquisition timeline. One analyst questioned why the company isn't more aggressive despite ample cash (Rs 800+ crore), suggesting execution hurdles beyond stated reasons.
- Working capital days increased to 27 days from normal levels due to advance payments to steel suppliers ahead of anti-dumping duty implementation. This ties up cash and increases inventory exposure. Management expects improvement by March 2026 but didn't quantify the normalized level.
- Management projects renewable volume to grow from 17,000 tonnes (Q3 FY26, single plant) to 180,000 tonnes annually by FY27, requiring 3x capacity utilization. The Ghaziabad plant is operational, Pune starts February 2026, but management admitted customers are delaying purchases due to recent steel price increases. Order booking expected to resume in February.
Key quotes
- 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.
Research modules