SG Mart Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript SG Mart Ltd filed with BSE on 07 May 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 Q4FY26 revenue above INR1,800 crores and EBITDA of INR56 crores, including an INR6 crore inventory gain, with full-year FY26 EBITDA growing 35% to INR137 crores. Management said service center volumes rose over 10% to 190,000 tons on new center additions, while B2B and renewable structure volumes were constrained by steel supply shortages linked to the Middle East crisis. Management stated the company closed the year with net cash of INR750 crores and working capital days reduced to 20.
Numbers mentioned
Revenue: upwards of INR1,800 crores (Q4FY26)
p. 3
“with Q4 being the best quarter in terms of revenue, upwards of INR1,800 crores, and EBITDA of INR56 crores”
Anubhav Gupta, page 3 of the filed PDF · View the filing
EBITDA: INR56 crores (Q4FY26)
p. 3
“with Q4 being the best quarter in terms of revenue, upwards of INR1,800 crores, and EBITDA of INR56 crores”
Anubhav Gupta, page 3 of the filed PDF · View the filing
EBITDA growth: 35% to INR137 crores (FY26)
p. 3
“with EBITDA growth of 35% to INR137 crores for FY26 with 15% ROCE on reported numbers”
Anubhav Gupta, page 3 of the filed PDF · View the filing
ROCE: 15% (FY26)
p. 3
“with EBITDA growth of 35% to INR137 crores for FY26 with 15% ROCE on reported numbers”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Working capital days: 20 days (FY26)
p. 3
“We brought down the working capital days to 20 with inventory and debtor rationalization”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Operating cash flow: INR300 crores (FY26)
p. 3
“This resulted in operating cash flow generation of INR300 crores for the full year, which funded the large capex of upward of INR250 crores”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Capex: upward of INR250 crores (FY26)
p. 3
“This resulted in operating cash flow generation of INR300 crores for the full year, which funded the large capex of upward of INR250 crores”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Net cash: INR750 crores (FY26 year-end)
p. 3
“And we closed our balance sheet with net cash of INR750 crores”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Service center volume: 190,000 tons (Q4FY26)
p. 3
“Service centers, if you see our volume was 190,000 tons for the Q4 versus 163,000”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Business EBITDA: INR50 crores (Q4FY26)
p. 4
“So all put together, these four verticals produced around INR50 crores of business EBITDA, and INR6 crores was inventory gain for the quarter”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Inventory gain: INR6 crores (Q4FY26)
p. 4
“So all put together, these four verticals produced around INR50 crores of business EBITDA, and INR6 crores was inventory gain for the quarter”
Anubhav Gupta, page 4 of the filed PDF · View the filing
New profile products volume: around 7,000 tons (Q4FY26)
p. 4
“So we started that business and did a volume of around 7,000 tons with good margins”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Capex approved: around INR600 crores (FY27-FY28)
p. 5
“Going forward, I think we already have taken approval of around INR600 crores of capex for two years”
Anubhav Gupta, page 5 of the filed PDF · View the filing
FY26 capex: around INR525 crores (FY26)
p. 5
“So if you look at like in FY26 full year, we did around INR525 crores of capex”
Anubhav Gupta, page 5 of the filed PDF · View the filing
ESOP exercise price: INR367
p. 6
“at that point in time, the current price, which was around INR367, will be the exercise price”
Anubhav Gupta, page 6 of the filed PDF · View the filing
Steel procured for trading: 410,000 tons (FY26)
p. 12
“We did get 410,000 tons of steel in FY'26”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Profiles business capacity: Around 120,000 ton per annum
p. 14
“Around 120,000 ton per annum.”
Anubhav Gupta, page 14 of the filed PDF · View the filing
Dubai service center volume: 37,000 tons (Q4FY26)
p. 8
“So in the service center, we did around 191,000 tons, right, for the full quarter from the service centers. Dubai was 37,000 tons.”
Anubhav Gupta, page 8 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.
Annualized EBITDA — INR300 crores to INR350 crores · FY27
stated conditionally by Anubhav Gupta
p. 4
“We are confident that we should be near that number unless there is more loss of business due to war in our B2B business or in our Middle East operations.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Quarterly business EBITDA — INR50 crores and rising · FY27
stated conditionally by Anubhav Gupta
p. 4
“whatever business ramp-up is taking place, we are confident that INR50 crores quarter 4 EBITDA, I mean, it will keep on rising throughout FY27, despite the challenges which we are facing in our B2B business due to the short supply of steel”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Renewable structures volume — 130,000 to 150,000 tons · FY27
stated conditionally by Anubhav Gupta
p. 7
“So put together, we should be around 130,000 to 150,000 tons for the full year, okay, in terms of renewable structures.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Steel profile volume — 100,000 tons plus · FY27
stated conditionally by Anubhav Gupta
p. 7
“So here also we can expect like 100,000 tons plus annual volume.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Number of service centers — 11 to 12 · FY27
stated firmly by Anubhav Gupta
p. 8
“We're going to add three more during this year, okay. I mean the exit service center, number of service centers should be around 11 to 12 for FY'27.”
Anubhav Gupta, page 8 of the filed PDF · View the filing
Puff panel margins — 5% to 8%
stated as an aspiration by Anubhav Gupta
p. 9
“As of now, we do expect like 5% to 8% margins.”
Anubhav Gupta, page 9 of the filed PDF · View the filing
EBITDA per ton by vertical — B2B INR700-1,000/ton, service center INR1,700-2,000/ton, solar INR3,000-5,000/ton, profile INR5,000-8,000/ton · FY27
stated firmly by Anubhav Gupta
p. 14
“We will give you the broad range, right? The B2B business is INR700 to INR1,000 per ton. The service center business is INR1,700 to INR2,000 per ton. The solar business is INR3,000 to INR5,000 per ton, and the profile business is INR5,000 to INR8,000 per ton.”
Anubhav Gupta, page 14 of the filed PDF · View the filing
Business growth — 50% CAGR · next three years
stated firmly by Anubhav Gupta
p. 11
“I think, it wouldn't be back-ended. You will see performance getting better and better every quarter, okay, from here on.”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Service center volume (exit run rate) — around 2 million ton annualized · in three years
stated as an aspiration by Anubhav Gupta
p. 15
“So, in three years, I mean, we may have around 20 service centers, okay, and each service center doing an 8,000 to 10,000 ton monthly volume. So around 2 million ton of volume is coming from service centers, okay, on annualized basis.”
Anubhav Gupta, page 15 of the filed PDF · View the filing
Renewable structures volume — around 300,000 ton annual · in three years
stated as an aspiration by Anubhav Gupta
p. 15
“Then for solar business, renewable structure business in three years, we should be doing around 250,000 ton, okay, 15, 20. So around 300,000 ton of annual volume from renewables structures.”
Anubhav Gupta, page 15 of the filed PDF · View the filing
Steel profile structures volume — 300,000 ton · in three years
stated as an aspiration by Anubhav Gupta
p. 15
“And similarly, 300,000 ton of volume from the other steel profile structures.”
Anubhav Gupta, page 15 of the filed PDF · View the filing
Margin profile Q1 — Q1FY27
stated firmly by Anubhav Gupta
p. 11
“So see, margins, margins, if you look at the EBITDA per ton for all the verticals, it will mirror what we did in Q4. We don't see any deterioration in EBITDA spread in Q1.”
Anubhav Gupta, page 11 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.
Interest cost fell due to working capital rationalization; other income was flat because capex absorbed operating cash flow.
Answered by Anubhav Gupta
Asked by Rahul Kumar: Why did interest cost and other income decline sequentially?
p. 4
“So see, I mean, the interest cost is declining because of the working capital rationalization. We closed the year with 20 days of working capital cycle.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Renewable structures should reach 130,000-150,000 tons for the full year and profile structures should exceed 100,000 tons annually.
Answered by Anubhav Gupta
Asked by Vishal Mehta: What is the volume outlook for the profile and renewable businesses in FY27 and FY28?
p. 7
“So put together, we should be around 130,000 to 150,000 tons for the full year, okay, in terms of renewable structures.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Dubai had almost no business in March due to the conflict, which hurt fixed cost absorption, but recovery is expected within a month.
Answered by Anubhav Gupta
Asked by Nikhil Porwal: Why did Dubai profitability decline despite steel prices moving up?
p. 7
“So Dubai has, so see, I mean Dubai, the, I mean in month of March, there was hardly any business, okay, because of like what happened there.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Management expects strong demand growth as developers shift from standard sheets to puff panels for better insulation, expecting the market to double or triple in three to four years.
Answered by Anubhav Gupta
Asked by Nikhil Porwal: What gives confidence in setting up puff panel capacity of 80,000 tons against a 150,000 ton market?
p. 9
“So it is not very expensive compared to standard sheets. All the developers who are building factories or who are building warehouses prefer puff panels now.”
Anubhav Gupta, page 9 of the filed PDF · View the filing
Management said growth would not be back-ended and performance would improve every quarter.
Answered by Anubhav Gupta
Asked by Darshil Jhaveri: Will the 50% CAGR growth guidance be linear or back-ended?
p. 11
“I think, it wouldn't be back-ended. You will see performance getting better and better every quarter, okay, from here on.”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Higher depreciation and interest costs from capex into service centers and new capacity are impacting PAT growth relative to EBITDA.
Answered by Anubhav Gupta
Asked by Garvit Goyal: Why has PAT growth lagged EBITDA growth despite 30%+ EBITDA growth?
p. 13
“So, see, I mean, if you look at the conversion of net profit from EBITDA, there are two factors, okay, which are impacting the PAT growth. One is depreciation, and the other is interest cost.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
There was an inventory loss of INR15-20 crores in Q3 and a gain of INR6 crores in Q4, meaning adjusted full-year EBITDA could have exceeded INR150 crores.
Answered by Anubhav Gupta
Asked by Aejas Lakhani: What was the inventory gain/loss impact on FY26 EBITDA?
p. 12
“So I guess the full-year EBITDA could have been more than INR150 crores if we adjust the steel price swings.”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Cash will be deployed toward capacity building and working capital for the next two to three years before dividends are considered.
Answered by Anubhav Gupta
Asked by Krunal Shah: What is the plan for the cash on the balance sheet?
p. 16
“Now, like whatever cash flow generation will be there, okay, for the next two to three years, we're going to deploy in capacity building.”
Anubhav Gupta, page 16 of the filed PDF · View the filing
Risks flagged
Middle East conflict disrupting operations and steel supply
p. 3
“This performance comes in the backdrop of a very challenging month of March because of the onset of the Middle East crisis.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Shortage of steel supply affecting B2B business
p. 3
“Vertical number one is B2B sales, which saw like if you look at the Q4 results, the B2B volume is lower than quarter 3 because of shortage of steel supply, which got triggered in month of January and then by the time war started, it further aggravated.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Shortage of coated steel affecting renewable structures volume
p. 4
“Our renewable structures saw slight dip in the volume. The reason is that we have to buy specialized coated steel, which was in short supply due to gas issues from the steel mills.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Dubai operations disrupted by the war
p. 4
“except that in Dubai, which contributes around 10% of the volume, operations are a bit disrupted.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Unpredictability of the war duration affecting fuel and steel supply
p. 16
“I mean war goes on for 30 days, 60 days, 90 days. I mean unless until the fuel supply becomes streamline, it will remain a challenge.”
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.