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Long Term Bank Facilities - Crisil AA-/Stable Short Term Bank Facilities - Crisil A1+
The agency has assigned a ‘stable' outlook to the long-term rating of the company.
Crisil Ratings stated that the rating upgrade reflects the strong support from the Sudesh Gupta (SG) group following transfer of controlling shareholding to Sanjay Gupta (chairman and MD of APL Apollo Tubes), along with his appointment as chairman of SG Mart.
The upgrade also factors in the company's strong operational and managerial integration with the SG group. The company is expected to benefit from the group's established market position, extensive business relationships and financial flexibility, which are likely to support its growth and expansion. Furthermore, the promoters have formally articulated their commitment to provide operational and financial support to group entities, including SG Mart.
The company reported strong momentum in the first quarter of fiscal 2027, with revenue increasing 14% on-year to Rs 1,309 crore, driven by volume growth and increasing contribution from value-added products. Revenue growth is expected to remain healthy at 10–15% over the medium term, supported by ramp-up of service centres, addition of new service centres, expansion in the renewable structures business and the company's strong dealer network.
Profitability improved in the first quarter of fiscal 2027, with the Ebitda margin rising to 4.5% from 3.1% in the first quarter of fiscal 2026. The operating margin is expected above 2.5% over the medium term, driven by scaling up of high-margin service centre and renewable structures segments, stabilisation in steel prices following the imposition of anti-dumping duties on Chinese steel imports, and increasing operating leverage from the expanded business base.
Capital structure remains strong, supported by equity infusion of over Rs 1,295 crore between fiscals 2024 and 2026. Total outside liabilities to adjusted networth ratio improved to 0.41 time as on 31 March 2026, as against 0.90 time as on 31 March 2025.
The ratings continue to reflect the company’s healthy business risk profile, with improving scale, diversified operations across trading, service centres, downstream distribution and renewable structures, and strong financial risk profile supported by significant cash balance, healthy capital structure and strong promoter support.
These strengths are partially offset by modest operating margin and susceptibility to volatility in raw material prices and foreign exchange (forex) rates.
SG Mart trades in more than 1,700 building products and derives bulk of its revenue from hot-rolled (HR) coils, CTL HR coils and thermo-mechanically treated (TMT) bars. It is appointing channel partners to penetrate the construction sector and has positioned itself as a one-stop solution provider for all construction needs.
The scrip had advanced 2.10% to end at Rs 711.65 on the BSE today.
Total operating expenditure jumped by 12.8% to Rs 1,249.81 crore in Q1 FY27 from Rs 1,107.87 crore in Q1 FY26. Interest payments and depreciation charges for the June 2026 quarter were Rs 6.21 crore (down 48.3% YoY) and Rs 4.07 crore (down 135.3% YoY), respectively.
While business EBITDA improved by 63.8% to Rs 588 crore, business EBITDA margin expanded by 139 basis points to 4.49% in Q1 FY27 over Q1 FY26.
Profit before tax in Q1 FY27 stood at Rs 58.23 crore, up by 36.7% from Rs 42.59 in Q1 FY26.
Amit Thakur, executive director, SG Mart, said: “SG Mart delivered a strong performance in Q1FY27, supported by continued execution across its diversified product portfolio and sustained demand from infrastructure and industrial end-markets.
While the operating environment remained influenced by global geopolitical developments and input cost volatility, our strategic focus on value-added products, disciplined sourcing, and operational efficiencies enabled us to maintain a healthy business momentum.
Our expanding presence across high-growth product categories and strengthened customer relationships position us well to capitalize on these opportunities while enhancing profitability through a richer product mix and prudent cost management.”
SG MART is an integrated building & infrastructure materials platform premier (one-stop shop) that provides a wide range of construction-related solutions from top brands under one roof.
The scrip fell 2.27% to currently trade at Rs 666.10 on the BSE.
For the full year,net profit rose 7.38% to Rs 111.06 crore in the year ended March 2026 as against Rs 103.43 crore during the previous year ended March 2025. Sales rose 7.84% to Rs 6315.28 crore in the year ended March 2026 as against Rs 5856.17 crore during the previous year ended March 2025.