SG Mart Limited has achieved complete utilization of its ₹1,150.00 crore preferential issue proceeds as of December 31, 2025, according to the latest monitoring agency report submitted by CARE Ratings Limited. The company successfully deployed the remaining unutilized amount of ₹17.53 crore during the third quarter of FY26, marking the full completion of fund utilization as per the original offer document.

Fund Utilization Overview

The preferential issue, which was allotted on November 28, 2023, comprised equity shares and fully convertible warrants. The monitoring agency report confirms that all proceeds have been utilized in accordance with the disclosures made in the offer document, with no material deviations observed.

Quarterly Deployment Strategy

During Q3 FY26, SG Mart implemented a strategic approach to deploy the remaining funds. The company redeemed fixed deposits amounting to ₹536.24 crore and subsequently transferred ₹86.25 crore from the total FD amount to an FD overdraft account. This transfer included the ₹17.53 crore pertaining to the balance issue proceeds, which were then utilized directly from the FD overdraft account towards working capital requirements to reduce working capital borrowings.

Monitoring Agency Assessment

CARE Ratings Limited, serving as the monitoring agency, has confirmed several key compliance aspects:

• No deviations from the objects stated in the offer document
• No material changes in the means of finance for disclosed objects
• No unfavorable events affecting the viability of the stated objects
• Complete adherence to regulatory requirements under SEBI regulations

Issue Details and Timeline

Completion Timeline

The company completed utilization ahead of the projected timeline mentioned in the offer document. Working capital requirements were fully addressed by December 3, 2025, while general corporate purposes were completed by May 27, 2025, both well before the March 31, 2026 deadline specified in the original documentation.

The successful completion of fund utilization demonstrates SG Mart's efficient capital deployment strategy and adherence to regulatory compliance requirements. With zero unutilized proceeds remaining as of December 31, 2025, the company has fulfilled all commitments made to investors during the preferential issue process.

SG Mart has reported its third quarter consolidated financial results, showing a notable decline in profitability compared to the same period in the previous year. The company's bottom line performance reflects the challenging business environment during the reporting period.

Financial Performance Overview

The company's consolidated net profit for the third quarter stood at ₹110.00 million, representing a significant decrease from the ₹276.00 million recorded in the corresponding quarter of the previous year. This translates to a year-on-year decline of 60.14% in net profit.

Business Impact

The substantial reduction in consolidated net profit indicates that SG Mart faced operational challenges during the third quarter. The company's profitability declined by more than half compared to the same quarter in the previous year, suggesting either increased costs, reduced revenues, or a combination of both factors affecting the overall financial performance.

The year-on-year comparison reveals the extent of the financial impact, with the company generating ₹166.00 million less in net profit during the current quarter compared to the previous year's corresponding period. This decline represents a significant shift in the company's earnings trajectory and highlights the operational pressures faced during the reporting period.