SG Mart , a leading B2B construction materials marketplace, has announced its financial results for the second quarter of fiscal year 2026 (Q2FY26), revealing a mixed performance characterized by robust revenue growth and margin challenges.

Key Financial Highlights

Revenue Growth and Margin Pressure

SG Mart reported a significant quarter-on-quarter revenue increase of 49.35%, reaching ₹1,708.25 crore in Q2FY26. However, the company experienced a 4.72% year-on-year decline in revenue compared to Q2FY25. Despite the strong sequential growth, SG Mart faced margin pressures, with the Business EBITDA margin contracting to 1.6% in Q2FY26 from 3.1% in Q1FY26.

Factors Affecting Performance

Amit Thakur, Executive Director of SG Mart, commented on the results: "We are pleased to report that our team has delivered strong sequential growth in Q2FY26, with revenue increasing over the previous quarter. This reflects improved traction across our core steel-trading business, downstream steel products and the renewable-structures segment. At the same time, we have observed some pressure on our margin performance. While the revenue growth is encouraging, margin compression arose due to softer realisations in the steel trading business and elevated cost absorption for the newly started renewable business."

The margin pressure appears to be primarily driven by:

1. Reduced earnings from steel trading operations
2. Increased costs associated with the company's new renewable energy business segment

Business Segments and Expansion

SG Mart continues to diversify its product offerings, now encompassing more than 49 product categories and over 6,000 SKUs. The company's product range includes:

• Construction steel products (TMT Rebars, HR Sheet, Welding rod, etc.)
• Tiles, cement, bath fittings, laminates, and paints
• Solar mounting structures (launched in Q1FY26)

Customer Base and Distribution Network

The company has expanded its customer base, now serving:

• Top-tier EPC companies
• Real estate developers
• OEMs
• Independent Power Producers
• Traders, dealers, and retailers

SG Mart reported associations with more than 2,328 customers and 402 vendors, indicating a growing network within the construction materials industry.

Outlook

While SG Mart demonstrates strong revenue growth and business expansion, the company faces challenges in maintaining profit margins. The pressure on margins from the steel trading business and the costs associated with the new renewable energy segment suggest that SG Mart may need to focus on operational efficiencies and cost management in the coming quarters to improve profitability.

As the company continues to expand its product range and customer base, investors and analysts will likely keep a close eye on how SG Mart balances growth with profitability in its diverse business segments.

Note: All financial figures are based on the consolidated results provided in the company's Q2FY26 financial statement.

SG Mart , a prominent player in the building materials sector, has reported a significant improvement in its financial performance for the second quarter. The company's consolidated net profit surged by 66% to 265 million rupees, compared to 159.5 million rupees in the same period last year.

Key Financial Highlights

• Net Profit: Increased by 66% year-over-year to 265 million rupees
• EBITDA: Rose to 280 million rupees from 149 million rupees in the previous year
• EBITDA Margin: Improved to 1.64% from 0.83% year-over-year

Improved Operational Efficiency

The substantial growth in EBITDA and the expansion of the EBITDA margin indicate improved operational efficiency and cost management by SG Mart. This performance suggests that the company has been successful in optimizing its operations and enhancing profitability.

Financial Position

According to the company's consolidated balance sheet as of September 30:

The balance sheet reflects a strong financial position with significant current assets and a healthy equity base.

Cash Flow and Liquidity

The consolidated cash flow statement for the half-year ended September 30 shows:

Despite the net decrease in cash, the company maintains a cash position of 92.99 crores in cash and cash equivalents at the end of the period.

Market Listing

SG Mart's equity shares were listed on the National Stock Exchange of India Limited on September 12, marking an important milestone for the company.

Conclusion

SG Mart's strong financial performance in Q2, characterized by significant growth in net profit and improved EBITDA margins, reflects the company's effective strategies and operational enhancements. As the company continues to strengthen its position in the building materials sector, investors and market watchers will likely keep a close eye on its future performance.