SG Mart , a prominent player in the Indian retail sector, has announced a significant revision to its financial targets, citing weaker-than-expected performance in the second quarter of fiscal year 2026. The company's management has stated that it will not achieve its previously set FY26 EBITDA target of ₹200.00 crore.

Performance Outlook

The company has provided insights into its near-term performance expectations:

This revised outlook suggests that SG Mart is facing challenges that are expected to persist through the third quarter of FY26, with hopes for improvement pinned on the fourth quarter.

Investor Communication

In line with its commitment to transparency, SG Mart held a conference call with investors and analysts on October 31, 2025, to discuss the unaudited financial results for the quarter and half-year ended September 30, 2025. This proactive approach to investor relations demonstrates the company's dedication to keeping stakeholders informed about its financial position and future prospects.

The audio recording of this conference call has been made available on the company's website, allowing investors and analysts who may have missed the live call to access the information. This practice aligns with the regulations set by the Securities and Exchange Board of India (SEBI) for listed companies.

Looking Ahead

While the revised EBITDA target represents a setback for SG Mart, the company's forward-looking statements suggest a cautious optimism for recovery beginning in Q4 FY26. Investors and market watchers will likely be keenly observing the company's performance in the coming quarters to assess its ability to navigate current challenges and return to a growth trajectory.

As the retail sector continues to evolve, SG Mart's ability to adapt to market conditions and execute its strategic plans will be crucial in determining its future financial performance and market position.

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.