SG MART LIMITED — Call Transcript 2026

Jan 27, 2026

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To, The Listing Department Department of Corporate Services/Listing National Stock Exchange of India Limited BSE Limited “Exchange Plaza” Bandra-Kurla Complex, Phiroze Jeejeebhoy Tower, Bandra (E), Mumbai-400051 Dalal Street, Fort, Mumbai-400001 NSE Symbol : SGMART Scrip Code: 512329

Dear Sir/Madam,

Sub: Transcript of the Conference Call held on January 23, 2026

With reference to our letter dated January 19, 2026 intimating to the stock exchange(s) about the conference call with Analyst(s)/ Institutional Investor(s) held on January 23, 2026. In terms of the provisions of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the transcript of the aforesaid conference call.

Submitted for your kind information and necessary records.

Thanking you Yours faithfully

For SG Mart Limited

Digitally signed SACHIN by SACHIN KUMAR KUMAR Date: 2026.01.27 16:44:02 +05'30'

Sachin Kumar Company Secretary & Compliance Officer M. No. A61525

Encl: a/a

SG MART LIMITED

(formerly known as Kintech Renewables Limited)

Registered Office: H. No. 37, Ground Floor, Hargovind Enclave, Vikas Marg, Delhi-110092 Corporate Office: A-127, Sector-136, Noida, Gautam Buddha Nagar, Uttar Pradesh-201305 Tel: 011-44457164 | Email: compliance@sgmart.co.in Website: www. sgmart.co.in | CIN: L46102DL1985PLC426661

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“SG Mart Limited Q3 FY'26 Earnings Conference Call”

January 23, 2026

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MANAGEMENT: MR. AMIT THAKUR - DIRECTOR, SG MART LIMITED MR. SURAJ KUMAR - CHIEF FINANCIAL OFFICER, SG MART LIMITED MR. ANUBHAV GUPTA - GROUP CHIEF STRATEGY OFFICER

– MR. ARCHIT ARORA LEADER (SERVICE CENTRE BUSINESS), SG MART LIMITED – MS. ANAMIKA GULATI LEADER (RENEWABLE BUSINESS), SG MART LIMITED MR. NAMAN RASTOGI - GENERAL MANAGER (STRATEGY), SG MART LIMITED

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SG Mart Limited January 23, 2026

Moderator:

Ladies and gentlemen, good day and welcome to SG Mart Limited Q3 FY’26 Earnings Call hosted by Motilal Oswal Financial Services Limited. We are pleased to welcome the Management of SG Mart.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Anubhav Gupta from SG Mart Limited. Thank you and over to you, sir.

Anubhav Gupta:

Thanks to Motilal Oswal for hosting SG Mart for its Q3 FY’26 Earnings Call and I welcome all the participants who have joined.

I am accompanied by my colleagues, Mr. Suraj Kumar – the CFO; Mr. Amit Thakur – Director; Mr. Archit Arora – Leader (Service Centre Business); Ms. Anamika Gulati – Leader (Renewable Business) and Mr. Naman Rastogi – General Manager (Strategy).

If you look at the 3rd Quarter, the tough environment persisted in 3rd Quarter with the decline in steel prices and softness in the demand. Though the financial performance is below expectations, but we are not disappointed with our business performance.

If you look at our 3[rd] Quarter revenue, the sales volume has increased 9% quarter-on-quarter. So, both B2B Metal Trading and renewable structure businesses are ramping up. We are not scared of Rs. 17 crores EBITDA which we reported for the 3[rd] Quarter because the actual business EBITDA was Rs. 40 crores for the 3rd Quarter. Because of the softness in steel prices, there was inventory loss of around Rs. 20 crores as we carried 20-25 days of inventory and there was sharp correction in the steel prices to the tune of Rs. 2,500-3,000 per ton. Plus, there are minor 2-3 crores of business expenses which we incurred to build the renewable structure and open profile business. I will talk about it shortly.

So, it is important to understand that how we are at Rs. 40 crores of quarterly EBITDA at business level and how we are going to take this to Rs. 60 crores in Quarter 4 and eventually to Rs. 80 crores-Rs. 85 crores quarterly run rate in FY’27. So, we will give you the clear picture that how we are achieving Rs. 40 crores in the current quarter like which went by Quarter 3. How are we going to increase it by 50% in Quarter 4 and how is it going to further increase to Rs. 80 crores-Rs. 85 crores quarterly run rate in FY’27.

So, there are like 4 businesses on which SG Mart is standing today, 4 pillars:

• The first pillar is the Service Centre business wherein we have 4 operational service centres in India and 1 in Dubai. 5 new service centres will be operational in FY’27 and we have

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already started identifying 10 more locations for which the land acquisition work has started. So, by end of FY’28, early FY’29, we shall have all 20 service centres up and running. And over here, we are offering 3 product services:

1. Stock and sell of HR coil.

2. Cut-to-length metal sheets

3. Embossed specialized checkered sheets for various industrial uses.

So, Service Centre business, if you see Quarter 3, we did around 163,000 tons in total with 50,000 tons of monthly run rate, 50,000-55,000 which is coming per service centre. Now, in Quarter 3, the EBITDA was slightly lower at around Rs. 1,500 per ton. In general, we make Rs. 2,000 per ton but here the spreads were lower by Rs. 500 per ton because the market was on the declining side in terms of raw material prices. So, there was some pressure on sales and lack of demand. So, we had to offer some discounts to our customers. But in Quarter 4, the revenue will be similar because the new service centres will start contributing from Q1-Q2 of FY’27. So, Quarter 4, the volume will remain same around 160,000 tons but the EBITDA spread will improve to Rs. 2,000 per ton which is the real margin for the business.

• The second business is B2B Metal Trading. In B2B Metal Trading, we did around 125,000 tons of volume in Quarter 3. In Quarter 4 also, we expect similar volumes and of course, the EBITDA spread will improve here as well. In Quarter 3, the EBITDA spread was around Rs. 500-Rs. 600 range. Again, because of declining steel prices, there was pressure on sales and lack of demand. So, since the steel price correction has got arrested, the business will make real spreads of Rs.900-Rs. 1000 per ton. So, these two businesses, the volume will remain flattish in Q4 but EBITDA spreads will improve sequentially which will improve the overall profitability for these two businesses.

• The third business is the Renewable Structures. These solar structures are what we are selling to IPPs and OEM customers in India. So, in Quarter 3, we did around 17,000 tons of sales volume. In Quarter 4, based on the current order book, we will be doing around 25,000 tons and EBITDA spread of course, it was a bit lower in 3rd Quarter because the business is ramping up. So, now all the costs got incurred already. So, the EBITDA spreads will be to the tune of around Rs. 4,000 per ton. We have a healthy order book here and now we are empaneled with almost 20-25 large OEMs and IPPs in the country. So, this business will continue to grow quarter-on-quarter.

• The fourth business which is part of the structures only wherein we wanted to start open sections starting from structure for residential rooftop, then cable trays for construction and purlins and racking structures. So, we have identified all these products, the capacities are being built up and we launched one structure for residential rooftop in end of Jan and the result has been so encouraging because these products are being sold through our group distribution network. So, a lot of strength we are getting because it is selling under APL Apollo brand with strong margins as well. So, in Q3, there was no volume from sale of these structures through trade route but in Quarter 4, we are expecting 10,000 tons of

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volume from these products. So, Q4 and we are making around Rs. 6,000-Rs. 7,000 per ton here because of brand premium.

So, if you multiply these four business segments, the revenue volume which I explained and multiply it with EBITDA per ton, we come around Rs. 60 crores of business EBITDA in Q4 and now we don't expect any steel price correction. In fact, there has been some price increase only in month of Jan. So, let's see how Feb and March pan out. If trend remains upward, there could be some reversal of inventory losses which we incurred in Q3 that will be over and above Rs. 60 crores of business EBITDA but we don't want to like, we do not want to comment on that but we are very confident that our business EBITDA of Rs.40 crores in Q3 will go up to Rs. 60 crores of business EBITDA in Q4.

Now, let me explain how we are looking at FY’27:

So, FY’27, the service enters 5 operational and we will get volume from 2-3 service centers which will start in H1 of FY’27. So, the 5 locations where we are putting up are, number 1 is Punjab, number 2 is Jaipur, number 3 is Kolkata, number 4 is Indore and number 5 is Ahmedabad. Jaipur will start firstly followed by Punjab, Indore, Ahmedabad also, I mean, work is on track and Calcutta we shall be starting by end of FY’27. So, overall we may get around 750,000 tons of full year volume from service centers and assuming Rs. 2,000 per ton EBITDA which we are generating, we will get Rs. 150 crores EBITDA from the service centers. Then we have Dubai service center which is generating around Rs. 10 crores-Rs. 12 crores of EBITDA on quaterly basis. We do around 15,000 tons of monthly volume with superior spread versus what we get in India. So, we will get around Rs. 50 crores for the full year. We get Rs.10 croresRs. 12 crores per quarter. So, this translates to Rs. 50 crores for the full year from the Dubai service center. So, the total service center business will give us Rs. 200 crores of EBITDA.

Then the B2B Metal Trading business, we will see, like you know, assuming the minimum volume depending on how steel supply shapes up. Although we are quite positive as more and more steel supply is coming up, but this is something where we are dependent on the steel supply. So, we are not giving aggressive guidance here. We are being very, very conservative. So, we are taking the same run rate what we are doing, Rs.125,000 tons per quarter. So, full year will be Rs. 500,000 tons and here the EBITDA spread will be 800-900. So, Rs. 50 crores will come from B2B business, B2B Metal Trading business.

Then we come to solar structures and the other structures what we are selling. So, on and all we have developed Rs.250,000 tons of annual capacity for solar structures and Rs. 250,000 tons capacity for the other structures, which we will sell through trade channel. So, total it will be 0.5 million tons, 500,000 tons of annual capacity. For solar structures, we have assumed volume of around 180,000 tons for full year, which means run rate of 13,000-14,000 tons per month, which we are confident of. And the profiles for the trade, the multiple other products for the trade segment, here we will do around 200,000 tons. So, put together we will be around Rs.350,000-

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400,000 tons of structures with EBITDA of around Rs. 4,000 to Rs. 5,000 per ton, which can give another Rs. 120-Rs. 150 crores EBITDA. So, all in all our business plan for FY’27 stands at around Rs.350 crores plus EBITDA. And I mean the only risk to these numbers could be again a sharp correction in the steel prices, which has been continuing for last two years. But at the level the steel prices have come, we don't expect it to hurt our P&L plus what has happened is that our absolute EBITDA, so, now Q4 we do Rs. 60 crores of business EBITDA. So, we shall close FY’26 with around Rs. 140 crores of full year EBITDA versus Rs. 103 crores last year, FY’25. So, still we are talking about 35%, 40% jump in absolute EBITDA. And when this Rs.140 crores become Rs.350 crores, so the impact from the steel prices also keeps on reducing. We saw this in journey of another group company, APL Apollo Steel Pipes, that when the EBITDA used to be small at absolute level, the steel prices fluctuation used to hit its P&L. But now that the absolute EBITDA is becoming a big number, then steel price fluctuation doesn't hit the P&L very badly. So, we are confident that no matter how steel prices behave, unless there is like 15%-20% crash, we should be able to achieve Rs. 350 crores plus EBITDA for FY’27.

In terms of balance sheet:

You see that the working capital days stood at Rs. 27 as at December 31[st] , 2025. This was slightly higher because of the advance payments we made to steel suppliers ahead of the imposition of anti-dumping duty on steel. So, we just wanted to book some steel because some restocking takes place. So, we made some advance payments to the steel suppliers. So, by March, it will be better than 27 days, what we reported.

So, we continue to maintain 50% earnings CAGR, which is our long-term guidance. Although FY’26 was badly hit in the first 9 months, still we will be delivering a 40% kind of EBITDA growth. And fingers crossed, FY’27, there could be like a 100% jump with the business model which I explained, where we don't see much of a challenge because it's been 2.5 years, the Company got into existence. Now, we have everything ready to take off all the systems, capacities, team, everything is in place. So, with all the confidence and conviction, we are talking about these financial numbers.

That's all from our side. Happy to take questions now.

Moderator:

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Vivek Patel from Ficom Family Office. Please go ahead.

Vivek Patel:

Very good afternoon. Thanks a lot for the opportunity, sir. I just wanted to understand from Mr. Archit Arora and obviously Anubhav sir as well. Firstly, the Jaipur Service Center, if I am not wrong, was expected to become operational in Q4. And also, what is probably causing the delay, as you mentioned that you are planning to open the same in FY’27? And broadly, what are the key challenges that is faced by the Company in expansion of the service center as well? Although the Company has ample cash on the books, I believe Rs. 880 crores, Rs. 900 crores as of

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December. And also, as you mentioned, there are locations which are scouted through the country as well. We will be thankful if you could expand on that.

Archit Arora:

So, just to answer the question on some delay on Jaipur operations beginning in Q4. So, it is just delayed by a couple of months because of excessive rains in that area. The rains lasted up to November. Civil work was impacted for a couple of months. It's back on track and we should be able to start operations by mid of March.

Anubhav Gupta:

And to answer on like the ability to be aggressive on the service centers. See, I mean, like I said, now we have 20 service center locations on hand in India plus one in Dubai. Four are operational, five, work has started already. The other sites I can name like Chennai, Hyderabad, Coimbatore, Hubli, Kolhapur, Kanpur, Ranchi, Vizag, Patna, Siliguri, Guwahati, Bhubaneswar in Odisha. All these sites, we have activated the land acquisition process and maybe in one or two more quarters, you will see, we will keep updating you that we have locked sites at these locations and the work has started. So, see, I mean, it took us like 3-4 quarters to get convinced that yes, I mean, we can easily do 8,000 ton-9,000 ton of monthly volume from each service center, with Rs. 2,000 per ton of EBITDA, so that we get desired ROCE of 25%-30%. Now, it's been like 3- 4 quarters, consistently 4 quarters that we have achieved this. So, it gives us a lot of confidence and conviction that now we have to become aggressive and go all out. So, January 2026 is that month where we have taken a call that now we will go all out and we want to establish these 20 plus one service centers as soon as possible.

Vivek Patel:

Understood. Thank you for that. Next, EBITDA per ton, as you mentioned over the quarters, so FY’25 EBITDA per ton was slightly above Rs. 900 and for this 9-months, it stood at slightly above 1,000. So, based on your plans of expansion of service centers and also increasing share of renewables over the next few quarters, how do you expect this number EBITDA per ton to change over the next say two years, FY’27-‘28?

Anubhav Gupta:

So, I think, one should not look at the blended EBITDA per ton. What one should look at is that how each business vertical is performing. Although, I mean, it may appear like around Rs. 1800Rs. 1900 per ton on blended basis, but there is a lot of scope to increase margins in the Renewable Structures and the other profile structures, because once you start doing some of the like backward integration, you can get a lot of the margins from quoting process, right? So, I think we are very clear that B2B business should be generating Rs. 1,000 per ton. Service center business in India should be generating Rs. 2,000 per ton. Service center business in Dubai should be generating Rs. 5,000 per ton plus. Then the solar OEM business should be generating Rs. 3,000 per ton to Rs. 5,000 per ton. And the profile business, which is trade-led sales, that should generate upward of Rs. 5,000 per ton-Rs. 6,000 per ton. So, we are very clear on this and each business vertical has its own working capital requirements. So, each business vertical will throw its own ROCE, right? So, we are not too much concerned that what will be the EBITDA per ton on blended basis. Rather, what we look at is what will be the ROCE for the overall company, ROE at the overall company level.

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Vivek Patel:

Understood. And the last question I had was on the financials. So, the short-term borrowings have reduced drastically from I think about Rs. 700 crores in FY’25 to 130 now in December, while the interest cost has stayed in the range of Rs. 12 crores in Quarter 1 and 2 and now it has increased to 17. Just wanted to understand why the interest cost has stayed the same while the debt has come down drastically? Thank you.

Anubhav Gupta:

So, see, here if you look at the interest cost, which we account 13 crores-14 crores for the whole year, for the quarter, annualized is around Rs. 50 crores-Rs. 55 crores. So, this translates that we have used like kind of loan of 740 crores, short-term, long-term, it is Suraj's call that how he wants to navigate with the bankers. Now, out of 750 crores, so that's the loan or that's the limits we have taken from the banks. So, half of this goes for the bill discounting because we sell on cash and carry. So, we get the receivable discounted from various banks. And plus there is a gross debt on the books, which you can see around Rs. 134 crores. And then we use some bank limits while we import steel from overseas. So, a lot of steel is always on high fee where we have to fund those purchases. So, that's the breakup of like the quarterly interest cost of 13 crores14 crores or I would say Rs. 4 crores per month run rate. But then at the same time, we have Rs. 800 crores of cash on the books, which gives us around 15 crores-16 crores-17 crores of quarterly interest income also.

Vivek Patel: Yes, understood. Just a small follow-up, sir. How much of your steel requirements are you importing now?

Anubhav Gupta: Now, it will become very less, only in Dubai, right? Because the Indian government recently imposed steel duty, anti-dumping tariffs. So, for India, anyways, we were importing very less. Since April 2025, anti-dumping duties came in and now the government continued it for next 2 years. So, nothing much here. Dubai, of course, it is all imported.

Vivek Patel:

Understood, sir. Thanks a lot and all the very best.

Moderator: Thank you. Our next question comes from the line of Rahul Kumar from Vaikarya Fund. Please go ahead.

Rahul Kumar: Yes, hi. Can you elaborate further on this interest cost breakup between the various heads which you mentioned? So, how much was because of bill discounting, how much was because of shortterm cost, the short-term debt?

Anubhav Gupta: So, 50% is because of bill discounting and 40% will be for import of steel and rest would be like bank charges, etc.

Rahul Kumar: And there is short-term debt also, right for Rs. 134 crores which you mentioned?

Anubhav Gupta:

Yes. That I have taken into account.

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Rahul Kumar: Where? Which head? Anubhav Gupta: Others. Rahul Kumar: And how much bill discounting we do on an average? Anubhav Gupta: So, normally like you can back calculate, when I say 50% is bill discounting, right. Interest cost. 7% is the interest rate. You can do back calculations. Rahul Kumar: Second question, I think on this renewables structure business, can you give some more color on the order book status, how it has moved and what is it now? Anubhav Gupta: Yes. So, order book is Rs. 300 crores plus, right, which is enough to do volume of around 25,000 tons for the Quarter 4. So, we are fully covered for that. And as we have installed almost 1 gigawatt, 1.5 gigawatt of structures, we have already installed since we started the business in Quarter 1, right. So, now there is a lot of acceptance in the market that SG Mart is already number 2 player. And the empanelments have become very easy now. It is just that steel prices went up a bit. So, purchases like the new orders will take 5-10 days to settle because all the purchase heads of solar companies, they are getting adjusted to the increase in steel prices. So, maybe like early Feb, this Rs. 300 crore order book could be above Rs. 400 crores with the pipeline what we have in hand. Rahul Kumar: So, this Rs. 300 crore is only for the Q4, right? Anubhav Gupta: No. 25,000 tons if we do, the average realization is 75,000. So, it is around under Rs. 200 crores. Rahul Kumar: Got it. And correct me if I am wrong, then how much volume did we get from the 2 new rented facilities which have opened in the quarter? Anubhav Gupta: So, it is around 3,000-4,000 tons per month from each entity. Rahul Kumar: So, does that mean that? Anubhav Gupta: Now that we are setting up our own centers, right. So, we are not ramping those up. We are just waiting for our centers to start. So, once we start our centers, so this 3,000-4,000 tons will shift plus additional 5,000-6,000 tons will capture extra market. Rahul Kumar: Got it. Thanks. Moderator: Thank you. Our next question comes from the line of Aman Soni from Nvest Analytics Advisory LLP. Please go ahead. Aman Soni: Hi. Am I audible?

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Anubhav Gupta:

Please go ahead.

Aman Soni:

Hi. Good evening, sir. So, first question, again, like this quarter also we are speaking about Rs. 60 crores EBITDA and maybe I have drawn a list a little bit late. So, maybe you must have explained it to us. So, just wanted to understand from you, Rs. 60 crores EBITDA that we are targeting and at the same time we are speaking about there is a little bit of slowdown in steel downstream products, demand of steel downstream products. So, how are we confident enough to achieve these big numbers in Q4?

Anubhav Gupta:

So, two things. One, that we already achieved Rs. 40 crore business EBITDA in Q3. So, this gives us a lot of confidence for Q4, number one. Number two, B2B metal business and service center business. We are assuming flattish sales volume. We are not factoring in any increase in the sales volume sequentially. Because the demand environment was weak in Quarter 3, so there was push sales which led us to offer some discounts to the customers. But now we have pulled off those discounts and we are getting the desired margin of Rs. 1,000 per ton in B2B and Rs. 2,000 per ton in the service center business. So, earnings will increase from improvement in the margins in B2B and service centers. Plus, the solar business, we did 17,000 ton volume. Now, we are projecting 25,000 tons. So, 30% increase in the volume here and margins will also expand as the operating leverage benefits come in. Plus, the new products for trade like solar structure for the residential rooftop application that we launched. Then cable trade will start next month. Then the slotted angle which is used for racking system that will start. Then Purlin structures for PEB sheds that will start. So, we are expecting almost 10,000 tons of additional volume from these products in Q4. And because they are selling under APL Apollo brand, so the margins are really high. So, this gives us confidence that Rs. 60 crore is a very much achievable number in terms of business EBITDA.

Aman Soni:

Usually, we speak about that business EBITDA will obviously reflect in the bottomline as well. So, can we expect the similar PAT?

Anubhav Gupta:

So, interest cost will be similar to the other income. And tax rate will be slightly lower because Dubai is also contributing. So, growth-wise, it will match, yes. But because see what is happening is that business is using cash to build capacities to open service centers. So, the other income will slowly gradually keep on going down. Earlier, we used to have Rs. 1,100 crores cash on the books. Now, we have Rs. 787-Rs. 790 crore cash. As we go on to acquire land for 10 more locations, again, we will have to use cash for CAPEX, right. So, we are talking to some machine vendors where we purchase machinery for all the 10 service centers in one go so that we get a very sweet deal, right. So, we may have to pay advances for buying of machinery. So, it is just that other income will keep on going down as the business will use more cash. Otherwise, the flow from EBITDA to PAT will be same.

So, let us suppose Rs. 350 Cr EBITDA target that we are taking for FY '27, what is the bottomline are you anticipating there?

Aman Soni:

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Anubhav Gupta: So, I think let us calculate here only. Other income, Suraj, will be like what? Rs. 40-Rs. 50 crores for the full year next year?

Suraj Kumar: Less than that. Rs. 500 crores actually.

Anubhav Gupta: 500. So, 30 interest rates are going down. So, Rs. 400 Cr is the EBITDA with other income. Then, interest expense will be how much?

Suraj Kumar: Somewhere around Rs. 50 crores. Anubhav Gupta: Rs. 50 crores. Suraj Kumar: Depreciation is somewhere around Rs. 15 crores. Anubhav Gupta: Rs. 15. All right. We will be around Rs. 250 crores PAT. Aman Soni: More or less like it will also be going in the direction only, direction of EBITDA. Understood. And sir, last quarter when we spoke on this EBITDA run rate, so you mentioned very clearly like Q4 will be the one where our business dynamics will get defined in the terms of the EBITDA that we will be doing going ahead because of the product mix change. As you mentioned, we are a little bit more focusing on the service center business and the emphasis will go down on the B2B business and that is why the steel prices impact over the quarters will be negligible, right? So, if that time has arrived or not, like Q4 run rate, can we assume it to be a next base for SG Mart?

Anubhav Gupta: Sir that is why with a lot of conservativeness, we are giving this number although our internal target is high, right. So, Rs. 60 crores is something which we shall achieve definitely. We could have delivered the performance in Q3 also if there was no inventory write downs. So, yes, Rs. 60 crores here and then 65, 70, 80, 90 that is how Q1 FY '27 to Q4 will flow down to for us to achieve Rs. 350 crores. So, we don't see much of error in these numbers.

Aman Soni:

Just last one clarification on the demand outlook maybe a little bit on the longer side. I went through the PPT of your group company as well. There also the Chairman has highlighted the ongoing slowdown in the construction and particularly on the government CAPEX side. So, how do you see this and how do you see the pictures shaping up from here? Like, are you also witnessing these kind of slowdowns to continue or maybe for next few quarters?

Anubhav Gupta: Macro should be better than what it is. There is no doubt about it. But for us to be able to achieve our guidance, what we are focusing on is that either we are launching new products, we are getting into new entries or we are opening service centers in new locations. So, it is like new customer acquisition or new product addition. So, we are not cannibalizing the existing business. The sales volume from service centers, we have already taken peak number of 8,000 ton each from the existing operational service centers. Now, it may go to 9000, 10,000, 11,000 if demand

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is good. So, that is the upside. But while giving you FY '27 guidance, we are factoring in 8,000 ton only per month from one service center because factoring in the demand slowdown. If there is upside, that numbers can definitely go up.

Aman Soni:

Got it, sir. That is it from my side, sir. And all the best for the future. Thank you very much.

Moderator: Thank you. Our next question comes from the line of Vishal Mehta from Oaklane Capital. Please go ahead.

Vishal Mehta:

Sir, my question was regarding the renewable division. Now, I just wanted to understand if I am having my calculations right, this quarter we did about Rs. 45 crores per month revenue with a 5,000-6,000 volume. And what we are effectively guiding for FY '27 is for the solar business, this will become Rs. 110 crores and there will be 15,000 volume per month?

Anubhav Gupta: So, Vishal, it is 17,000 ton in renewable.

Vishal Mehta: That is for the quarter, right? About 5,000 per month. So, what I am saying is from 17,000, so basically, if I multiply that by 4, it is close to about 80,000.

Anubhav Gupta: Okay.

Vishal Mehta:

So, 80,000, we are expecting 80,000 to go to 180. So, I am just trying to understand how do we bridge this gap from 80 to 180 in the solar business because we have orders only worth Rs. 300400 Cr. So, is there a visibility that we have for that? That is the first question. And I can come back for the second one. I will ask that once this is done?

Anubhav Gupta:

So, Vishal, this 17,000 ton which we did, we only did it from one plant in Ghaziabad. Now, our Raipur plant has started and our Pune plant is also starting in February. So, our capacity will be three times of what it is right now, number one. Number two, we had the order book of like Rs. 250-Rs. 280 crores, now it is Rs. 300 crores. So, we were just waiting for our capacities to start, new capacities in Raipur and Pune to start before we go aggressive on the order booking. Third is that, like I said, there has been increase in steel prices in month of January. So, all the solar companies, they have kind of delayed the purchases because they are adjusting to the new steel price. Everyone thinks that steel prices cannot increase so sharply, they may come down. So, they may see that how Feb pricing goes about and then they will start taking the calls. So, order booking will come in Feb, we are not bothered about it. Number 4 is the kind of demand for solar structures which is going to come up, right. Right now, the market is around 50,000 tons a month and we only did 5,000 tons and we are talking about 15,000-20,000 tons to 180,000 tons, meaning 15,000 tons a month. So, I am talking about like 20% market share, 20%-25% market share with the capacity as a number one leader. And you talk to like top 10 IPPs of India, the kind of installations they have in their business plan, some of are listed also, you may get public data also. That is insane. So, we believe that this 40,000-50,000 tons, a monthly market could go to 70,000-80,000 tons in next 2-3 years on monthly basis.

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Vishal Mehta: And sir, in terms of the margin profile, we have spoken about Rs. 4,000 per ton for this business, but in the presentation for the solar business, renewable business? Anubhav Gupta: Yes. So, we gave 6%-8%? Vishal Mehta: In the presentation, it is 6%-8%. So, is there a disconnect because that turns out to be a little 6,000 or so? Anubhav Gupta: So, here, there are some products which are upcoming, right. So, the NSR is a bit low. So, the blended NSR will be Rs. 65,000 per ton. Let us take average of 7%. So, Rs. 4,500-Rs. 5,000. Vishal Mehta: Got it. So, the NSR for the new products is a little lower? Anubhav Gupta: Yes, because that is only zinc coating, whereas solar structures are zinc plus aluminum coating. Vishal Mehta: Great, sir. Very encouraging. Thank you so much. All the best. Anubhav Gupta: Thank you, Vishal. Moderator: Thank you. Our next question comes from the line of Rajeev Bhatt from KL Securities. Please go ahead. Rajeev Bhatt: Yes. Good evening, sir. I just had a couple of questions. One is related to the current geopolitical environment which is going on, right, between US, European Union, China, and how it is impacting the trade within India. So, knowing with this global dynamics being the background, I just wanted to understand how exactly will it be impacting the SG Mart’s ability to deliver on the guidance of EBITDA, which you said, Rs. 60 crores in Q4 and Rs. 80 crores per quarter going forward. And specifically, what measures are you all taking to mitigate any kind of risk related to steel price volatility or any trade disruptions, etc.?

Anubhav Gupta: So, see, in terms of risk management, the steel prices in Quarter 3 by end of December were at like almost low in the last 6 years. We saw that steel prices just before COVID. After that, there has been a massive rally in steel prices until 2023 and then they started coming down, right, 2024 and 2025. And December 2025 was the lowest. So, we were like keeping inventory pretty low, right. And we were kind of confident, although it is very difficult to take a bet on commodity cycle. But we were fairly confident that steel prices should not be going lower than the like levels what we saw in December. And till today, there has been results from one steel mill which came out. So, the EBITDA spreads of that company also, they are pretty low. So, Indian steel mills were sure that they had to increase pricing January onwards. So, in risk mitigation, only thing what we can do is keep minimum inventory levels, right. We don't want to speculate or take bets on steel price movements, because that is not part of our business plan, never was, never will be. Secondly, on geopolitical, I think, how it can impact or how it is impacting global commodities is, the rise in pricing only, right, you take any commodity, the prices are going high only. So,

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we work on pass-through model, right. Our products are fully linked to the steel prices, how they behave domestically or internationally. So, yes, we don't expect it to hurt too much on a full year basis. In one quarter, like Quarter 3 got hit because of like sharp correction, but it will not repeat, it will not repeat again and again. So, what encourages us is that we generated Rs. 40 crore of business EBITDA in Q3, which will go to Rs. 60 crores in Quarter 4. That is what we are thinking.

Rajeev Bhatt:

My second question is related to, late last year, Mr. Rohan Gupta from your group, he had basically shown confidence in this stock, and he had done a purchase, open market purchase of 329 or so. Now that we intend to kind of grow up, the guidance which you all have given, which kind of gives us also as investor’s confidence that if in case if the stock price were to correct, based on what kind of guidance which was given in the past and the performance which you have clearly stated was because of situations which are outside the management's control, right. So, if at all the stock were to kind of correct negatively, I presume that the management has got the confidence to kind of do a similar kind of buyback from the open market. Any kind of thoughts on that particular thing in terms of conviction of sticking to the guidance and thereby also giving confidence in the extended investor community?

Anubhav Gupta:

So, definitely, that transaction happened in September 2025, right, where the family added 3.5 million shares and we are confident on like how SG Mart earnings trajectory will look like, right. So, yes, the family, the management, the promoters, everyone is pretty bullish on the long-term prospects of the company.

Rajeev Bhatt: Thank you, sir, and all the best and we have fingers crossed that guidance is something which we actually see on the ground. Thank you so much.

Anubhav Gupta:

Thanks.

Moderator: Thank you. Our last question comes from the line of Vikas Mistry from Moonshot Ventures. Please go ahead.

Vikas Mistry:

Yes, thanks for the opportunity. Hi, Anubhav and hi, Suraj. How are you? So, first of all, very congratulations on expanding your portfolio in terms of renewable structures. So, we have given some market share across this renewable and structures and how we are confident enough to get that much amount of market share and what is the competitive intensity across the segments?

Anubhav Gupta:

So, here, there are two sales points. Number one is OEM, which are India's IPPs, okay, or solar EPC players. Number two, these other structures which are sold through trade. So, APL Apollo Group has 800 dealers across India, which further sell to 50,000 retail shops and those 50,000 retail shops sell to 200,000 fabricators. The channel to sell steel pipe or any other product, which the group has been doing. So, what we found out is the channel is safe. And if you look at the slide number 15, there are two products on the left side, which are operational. Number one is the utility, which is OEM sales point business and second is, it is called Strut, which goes on the

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rooftop of residential structures. So, this is sold through trade. We launched this product last month, December, and we are already selling like 5,000 tons per day. We only got like one mill, 3 more mills are coming. So, one mill is already full. So, it is the vast network, which will drive the sales for these products. And as far as the IPP is concerned, the OEM led business, like I said, in last 8-9 months, since we started, we have already supplied structure to install 1.5 gigawatts of solar energy, of solar power, which gives enough confidence to the industry that SG Mart has established itself as a serious player to supply ground mounted solar structures for the industry. Here, the right to win is again steel, which comes from Tata JSW, right, coated steel and we are already buying in bulk, getting advantage in terms of pricing and some benefit you pass it on to the customer to win the orders.

Vikas Mistry:

So, Anubhav, apart from these products that we mentioned in the presentation, do we have other products which are lined up, which are of similar size, and which are of high value addition? Do we have them?

Anubhav Gupta:

So, maybe in service centers, we are exploring, selling of, so right now we sell HR led metal sheets. We are working on some coated sheets also, right. Maybe in next earnings call or maybe one quarter further, we will come back, we will come with a business plan that how within the existing service centers, we can expand the portfolio from normal, or I would say, HR metal sheets to coated metal sheets also.

Vikas Mistry:

Yes, thanks. Good to hear that. So, my last question is itself on volatility towards that is dragging inventory losses, making inventory losses. So, at what run rate of EBITDA where we feel comfortable with the 5%-10% drawdown on maybe quarterly EBITDA level drag due to 3%4% drag in the price?

Anubhav Gupta: This will keep on going down as our absolute EBITDA keeps on increasing. Like I said, we have seen this.

Vikas Mistry: Sorry for interruption. Anubhav, I am just trying to pick your brains on the fact that at what EBITDA level it becomes pretty small. So, our internal understanding says that at roughly Rs. 150 crores of EBITDA level that become pretty insignificant. So, what do you take on that?

Anubhav Gupta: I think Rs. 350 crores we hit in FY '27. We should be fairly okay. Then when we go Rs. 500 crore plus, then the hit, the pinch will be very less.

Vikas Mistry: Yes. Thanks, Anubhav for that and kudos to the team and we hope that you continue to bring new products, high margin products and thanks a lot, Suraj, you too.

Anubhav Gupta:

Thank you so much. Thanks. Thanks so much.

Moderator: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Anubhav Gupta from SG Mart Limited for closing comments.

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Anubhav Gupta:

Thanks everyone for joining in. I know that numbers look disappointing, but in real we have done much better and we will do much better in Quarter 4 which will give lot of confidence to the investors that how we are going to achieve Rs. 350 crores EBITDA next year. Thank you so much.

Moderator:

Thank you. On behalf of Motilal Oswal Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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