SG Mart Limited – Investor Presentation Summary
Key Operational Highlights
- Volume for Q1FY27 was 214 k Tons.
- The company has 7 operational service centers located in Pune, Bangalore, Dujana, Raipur, Dubai, Indore, and Ahmedabad.
- Two service centers (Ahmedabad and Indore) are currently operated on lease and will be shifted to company-owned facilities later.
- The company aims to establish 16 service centers across India by 2028.
- The number of registered customers reached 2,505 in Q1FY27.
- Key product categories include Metal Plates, Embossed Sheets, Strut Channels, Z/C Purlins, Racking Profiles, Cable Trays, Door Frames, and upcoming Puff Panels.
Key drivers of operational performance:
Execution across a diversified product portfolio and sustained demand from infrastructure and industrial end-markets.
Segment-wise Performance
- Service Centres (merged): Revenue of ₹10,440 Mn on volume of 177 k Tons for Q1FY27. (Note: This segment is a merger of B2B Metal Trading and Network of Service centres from next quarter onwards).
- Solar Structures: Revenue of ₹823 Mn on volume of 11 k Tons for Q1FY27.
- Steel Profiles: Revenue of ₹1,414 Mn on volume of 18 k Tons for Q1FY27.
- Others: Revenue of ₹409 Mn for Q1FY27.
Explanation of significant changes in segment performance:
Not Specified
Financial Highlights
Revenue: Rs. 13,086 Mn
EBITDA: Rs. 588 Mn (Business EBITDA)
PAT: Rs. 456 Mn
EPS: Not Specified
Margins: Business EBITDA Margin of 4.49%; Net Profit Margin of 3.48%
YoY/QoQ comparison: Revenue increased 14% YoY (from ₹11,438 Mn in Q1FY26) and decreased 28% QoQ (from ₹18,228 Mn in Q4FY26). PAT increased 41% YoY (from ₹323 Mn in Q1FY26) and increased 10% QoQ (from ₹415 Mn in Q4FY26). EBITDA increased 64% YoY (from ₹359 Mn in Q1FY26) and increased 5% QoQ (from ₹561 Mn in Q4FY26).
Drivers of financial performance: Strategic focus on value-added products, disciplined sourcing, and operational efficiencies.
Comparison to market estimates: Not Specified
Key Risks: Global geopolitical developments and input cost volatility.
Geographical Revenue Split
Domestic vs Export/Regional Revenue: Not Specified
Regional Breakdown: Not Specified
Balance Sheet Snapshot (as of Q1FY27)
Net Debt/Equity: Not Specified. Debt: ₹1,075 Mn; Shareholders' funds: ₹16,431 Mn.
Reserves: Not Specified
Current Assets/Liabilities: Current Assets: ₹12,205 Mn (Inventories: ₹2,090 Mn; Receivables: ₹7,948 Mn; Cash & Bank Balance: ₹1,864 Mn; Other current assets: ₹303 Mn). Current Liabilities: ₹2,264 Mn (Trade payables: ₹1,643 Mn; Other current liabilities: ₹621 Mn).
Working Capital/Leverage Metrics: Net Working Capital (NWC) days: 27 days (annualized for FY27).
Financial Health Insights: Not Specified
Capex & Cash Flow Health
Capital Expenditure: Capex for Q1FY27 was ₹896 Mn.
Free Cash Flow: Free cash flow for Q1FY27 was negative ₹657 Mn.
Operating Cash Flow: Operating cash flow for Q1FY27 was ₹302 Mn.
Net Debt Movement: Net cash decreased from ₹7,527 Mn at FY26-end to ₹6,874 Mn at Q1FY27-end.
Investment Rationale: Not Specified
Strategic & R&D Initiatives
Investments in Innovation: Focus on expanding presence across high-growth product categories.
Expected impact on growth: Target of 50% business CAGR over the next 3 years.
Strategic Rationale: To capitalize on opportunities in infrastructure and industrial end-markets and enhance profitability through a richer product mix.
Industry Trends & Business Environment
Macro/Industry Trends: Operating environment influenced by global geopolitical developments and input cost volatility.
Impact on Company: The company's strategic focus enabled it to maintain healthy business momentum despite these challenges.
Management Commentary & Growth Outlook
Strategic Outlook: "Looking ahead, we remain confident in our growth trajectory and will continue to focus on disciplined execution, operational excellence, and efficient capital allocation."
FY Guidance: Not Specified
Market Share Targets: Not Specified
Risks and Opportunities: Risks from global geopolitical developments and input cost volatility.