SG Mart Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript SG Mart Ltd filed with BSE on 22 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
SG Mart reported its second consecutive quarter of sustained revenue and profitability, with management describing the business model's evolution from trading to manufacturing across five pillars including manufacturing, branding, distribution, service centers and an online marketplace. The company reported service center volume of 160,000 tons, steel profile volume of 18,000 tons, and renewable structures volume of around 11,000 tons for Q1 FY27, alongside an EBITDA margin above 4%. Management outlined capex plans of roughly INR1,500 crores over the next two to three years to be funded from existing cash and internal accruals, without new capital raising or dilution.
Numbers mentioned
Service center volume: 160,000 tons (Q1 FY27)
p. 3
“So from service center, we did volume of 160,000 tons in quarter 1.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Steel profile volume: 18,000 tons (Q1 FY27)
p. 4
“The total volume we did here is 18,000 tons.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Renewable structures volume: around 11,000 tons (Q1 FY27)
p. 4
“The renewable structures, we did volume of around 11,000 tons.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
ROCE: around 23% (Q1 FY27 annualized)
p. 4
“So for quarter 1 FY27, if we annualize the financials, the ROCE comes to around 23% with net cash on books around INR690 crores.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Capex spent: INR90 crores (Q1 FY27)
p. 4
“We spent INR90 crores capex in quarter 1.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Inventory: INR209 crores (as of 30th June 2026)
p. 7
“like in FY26, March -- 31st March 2026, the inventory lying in the books was INR284 crores, and in quarter 1 by 30th June, it fell to INR209 crores.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
EBITDA margin: more than 4% (Q1 FY27)
p. 7
“Plus the margins also in these products are superior, which led to like EBITDA margin of more than 4%.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Other current assets: INR211 crores (Q1 FY27)
p. 10
“the other current assets have increased to like INR211 crores from INR188 crores.”
Anubhav Gupta, page 10 of the filed PDF · View the filing
B2B metal trading volume: 17,000 ton (Q4 (prior quarter))
p. 14
“If you look at our quarter 4 volume, my B2B metal trading was only 17,000 ton in 1 quarter.”
Anubhav Gupta, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Number of service centers — 25 service centers · by 2029
stated firmly by Anubhav Gupta
p. 4
“we shall launch 5 service centers every year to take this number to 25 by 2029.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
EBITDA per ton (steel profile and renewable business) — INR6,000 to INR7,000 per ton · next 1.5 years
stated conditionally by Anubhav Gupta
p. 4
“it shall improve as we will set up our own backward manufacturing line in next 1.5 years, which will boost our profitability to INR6,000 to INR7,000 per ton.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Full year capex — INR400 crores to INR500 crores · FY27
stated firmly by Anubhav Gupta
p. 4
“And for full year, we shall be spending around INR400 crores to INR500 crores.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Total capex requirement — about INR1,500 crores · next 2 to 3 years
stated firmly by Anubhav Gupta
p. 4
“the total capex requirement in the business will be about INR1,500 crores in the next 2 to 3 years.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Backward integration line commissioning — 18 months
stated firmly by Anubhav Gupta
p. 6
“And in next 18 months, the backward integrated line will be fully operational.”
Anubhav Gupta, page 6 of the filed PDF · View the filing
FY27 absolute EBITDA — around INR300 crores · FY27
stated conditionally by Anubhav Gupta
p. 12
“we had mentioned around INR300 crores for FY27 in terms of absolute EBITDA.”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Working capital days — 20 to 25 days · next 2 years
stated firmly by Anubhav Gupta
p. 13
“We'll settle between 20 to 25 days in next 2 years.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Steel and profile volume growth — 3.5x to 4x · next two to three years
stated as an aspiration by Anubhav Gupta
p. 5
“So we can grow this business by 3.5x to 4x in next two to three years, meeting the industry demand.”
Anubhav Gupta, page 5 of the filed PDF · View the filing
ROCE floor across verticals — not below 20%
stated firmly by Anubhav Gupta
p. 13
“any vertical, we will not dilute ROCE below 20%, no matter what.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Revenue and EBITDA by 2030 — INR25,000 crores to INR35,000 crores revenue with minimum INR1,000 crores EBITDA · by 2030
stated as an aspiration by Anubhav Gupta
p. 16
“We believe that with more than 4 million tons in steel volume, the revenue could be like INR25,000 crores to INR35,000 crores by 2030 and with minimum INR1,000 crores EBITDA.”
Anubhav Gupta, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said inventory gains were minuscule since inventory actually declined, and attributed the margin improvement to a richer mix of steel profiles and renewable structures.
Answered by Anubhav Gupta
Asked by Vishal Mehta: Whether the margin improvement this quarter was structural or driven by inventory gains.
p. 7
“like inventory gain is very, very minuscule because if you look at the inventory -- absolute inventory, like in FY26, March -- 31st March 2026, the inventory lying in the books was INR284 crores, and in quarter 1 by 30th June, it fell to INR209 crores.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Management said the change in service center count target does not matter and that coverage of industrial clusters and per-center volume is what matters.
Answered by Anubhav Gupta
Asked by Garvit Goyal: Whether service center challenges were causing a lower service center target of 25 versus an earlier 30.
p. 12
“this number is 30, 25, it doesn't matter. What matters is that are we covering pan-India?”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Management said oil prices had begun rising again after renewed conflict and that broader disruption could hurt sales and customer industries if volatility persists.
Answered by Anubhav Gupta
Asked by Garvit Goyal: Whether the company is seeing any disruption from geopolitical tension currently.
p. 12
“if there is too much of volatility, it will impact sales for sure, okay? And lot of industries, lot of customer industries will suffer, right?”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Management described the backward integration as cold rolling plus metal coating and said it could improve margins by INR3,000-4,000 per ton.
Answered by Anubhav Gupta
Asked by Jatin Damania: What kind of backward integration is being pursued and its EBITDA impact.
p. 13
“So it is cold rolled plus metal coating, okay? This is what we're talking about. And margins, I mean, through backward integration can improve by INR3,000 to INR4,000 per ton.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Management said no vertical would be allowed to dilute ROCE below 20%.
Answered by Anubhav Gupta
Asked by Vikas Mistry: Whether contract manufacturing would be ROCE dilutive.
p. 13
“any vertical, we will not dilute ROCE below 20%, no matter what.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Management confirmed MSMEs and SMEs remain the primary customers of the service center business, not large OEMs.
Answered by Anubhav Gupta
Asked by Ulen Soubam: Whether MSMEs remain the primary customer base after the shift to service centers and value-added products.
p. 15
“Our main customers are SME and MSMEs, okay? Whether small industries or small traders.”
Anubhav Gupta, page 15 of the filed PDF · View the filing
Management gave a revenue range and minimum EBITDA figure tied to steel volume targets for 2030.
Answered by Anubhav Gupta
Asked by Akash Srivasthav: What revenue, tonnage and EBITDA targets management sees for 2030.
p. 16
“We believe that with more than 4 million tons in steel volume, the revenue could be like INR25,000 crores to INR35,000 crores by 2030 and with minimum INR1,000 crores EBITDA.”
Anubhav Gupta, page 16 of the filed PDF · View the filing
Risks flagged
Geopolitical tension and oil price volatility affecting commodity and steel prices
p. 12
“Now the steel prices -- sorry, the oil prices have again started to shoot up. It will again have a lot of impact on the commodities, including steel.”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Broader disruption to customer industries if fuel/gas shortages recur
p. 12
“In March, everyone suffered because of shortage of fuel, gas, petrol, diesel, right? So if that situation comes again, then the whole country business environment will suffer.”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Advances to steel mills increased due to desire for credible steel supply amid geopolitical turbulence
p. 10
“Now in last 4, 5 months, because of all the geopolitical turbulence what we have seen, I mean, we always want to have a credible source of steel.”
Anubhav Gupta, page 10 of the filed PDF · View the filing
Moving variables beyond company control such as geopolitical situation and macro environment could affect performance versus guidance
p. 16
“there are a lot of moving variables, which are beyond our control, like geopolitical situation and the macro environment.”
Anubhav Gupta, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.