Financial Performance Overview

SG Mart Limited (formerly Kintech Renewables Limited) reported strong financial results for FY 2025-26 with revenue from operations reaching ₹63,153 million, representing 8% year-on-year growth from ₹58,562 million in FY25. The company achieved a 33% increase in Business EBITDA to ₹1,367 million from ₹1,031 million, while net profit grew 7% to ₹1,111 million from ₹1,034 million.

On a standalone basis, revenue from operations stood at ₹5,540.32 crore (FY25: ₹5,511.59 crore) with profit after tax of ₹86.83 crore (FY25: ₹93.90 crore). Consolidated results showed revenue of ₹6,315.28 crore (FY25: ₹5,856.17 crore) and net profit of ₹111.06 crore (FY25: ₹103.43 crore).

Operational and Strategic Developments

The company successfully transitioned from pure trading to an integrated metals platform, expanding its service centre network to 7 locations and processing 637k tonnes of steel. Significant operational improvements included reducing net working capital days from 30 to 20 days and generating approximately ₹300 crore in operating cash flow.

Business vertical performance showed strong results across segments:

  • Network of Service Centres: Generated revenue of ₹32,144 million
  • Steel Profiling Products: Operationalized in second half, delivering highest EBITDA per tonne
  • Solar Structures: First full year of meaningful volumes with ₹3,065 million revenue from 39,894 tonnes
  • B2B Metal Trading: Volume of 411k tonnes sold, revenue of ₹19,560 million

Capital Structure and Corporate Actions

The company approved a significant capital expenditure plan of ₹1,500+ crore over the next 3 years, focused on new service centres and capacity expansion, to be funded internally without material dilution. During FY26, the company completed conversion of warrants, issuing 13,618,000 equity shares and receiving ₹255.34 crore.

SG Mart strengthened its balance sheet with cash and equivalents of ₹510.90 crore (standalone) and ₹519.89 crore (consolidated), while reducing borrowings from ₹689.04 crore to ₹231.42 crore (consolidated). Property, plant and equipment expanded significantly to ₹319.91 crore (consolidated) with capital expenditures of ₹160.97 crore during the year.

Corporate Governance and Compliance

The board was reconstituted with Amit Thakur as Whole Time Director and several independent directors. The company adopted new ESOP schemes, including the "SG Mart Limited Employees Stock Option Scheme-2023" and "SG Mart Employees Stock Option Plan 2025," with 3,90,000 options granted during FY26.

No dividend was declared for FY 2025-26 to conserve resources for business requirements and growth initiatives. The company maintained full compliance with statutory requirements, with no material penalties or strictures from regulatory authorities.

Outlook and Growth Strategy

SG Mart is targeting 50% CAGR in business EBITDA over the next three years through expansion of its service centre network to nearly 20 locations and capacity addition targeting 0.5 MTPA each for Solar Structures and Steel Profiling Products. The company is evaluating geographical expansion opportunities in Hyderabad, Chennai, and Punjab while focusing on value-added segments beyond pure trading.

Risk factors identified include increasing competition, technological disruption, supply chain disruptions, and steel price volatility, with mitigation strategies including dynamic pricing, supplier diversification, and investment in advanced inventory management systems.