SG Mart Ltd Q2FY26 | ₹1,704 Cr Sales, ₹26.5 Cr PAT – Steel, Tiles, and TMT Empire in a Shopping Cart with a 37.8x P/E Tag
1. At a Glance
SG Mart Ltd, formerly known as Kintech Renewables, is one of those rare rebirth stories where a dusty renewable relic got a corporate reincarnation into a shiny B2B construction mart backed by the mighty APL Apollo family. The share price at ₹359 has been running like an unsupervised JCB operator—one quarter it digs, next quarter it soars. With a market cap of ₹4,541 crore, Q2FY26 revenue of ₹1,704 crore, and PAT of ₹26.5 crore, the company is putting up quite a show for a “new business.”
The stock P/E stands at 37.8, a figure more suitable for software startups than a trading house for rebars and bath fittings. But hey, when your patrons are relatives of Sanjay Gupta of APL Apollo, the street tends to believe you’ll sell iron bars like biscuits. SG Mart’s ROE at 9.0% and ROCE at 11.3% show it’s not a money furnace yet, though the OPM of 2.12% feels thinner than plywood laminates they sell.
In short: ₹5,778 crore annual sales, ₹120 crore profit, ₹266 crore debt, and ₹878 crore raised from a premium preferential allotment — all for a company that barely existed operationally two years ago. This ain’t just a steel mart; this is a corporate renovation project with a Gupta paint finish.
2. Introduction
There are startups that build apps, and then there are startups that build warehouses filled with rebars, tiles, paints, and plumbing dreams. SG Mart falls in the latter category — a construction bazaar meets APL Apollo DNA experiment.
The company has literally gone from renewable energy footnote to India’s “Amazon for construction” in just one financial year. In FY24, it recorded its first full year of operations with ₹2,683 crore sales; in FY25, that jumped to ₹5,856 crore. Now, halfway through FY26, it’s already clocking ₹3,408 crore (H1).
Their warehouses in Pune, Bangalore, Dujana, and Raipur aren’t just sheds; they’re the temples of a new-age distribution model that combines steel, tiles, fittings, and LED lights under one invoice. SG Mart’s customer count shot from 170 in Q1FY24 to 800+ in Q1FY25, and the supplier list reads like a metals industry hall of fame — JSW Steel, NMDC, Jindal Steel & Power, Hindustan Zinc, Godawari Power, Kajaria, and Havells.
But every story has a twist. While the products are solid (literally), the numbers need muscle. With wafer-thin margins and frequent CFO resignations, SG Mart is learning that running a ₹5,000-crore trading giant isn’t just about stacking inventory — it’s about managing expectations, execution, and Excel sheets.
3. Business Model – WTF Do They Even Do?
Let’s get this straight: SG Mart isn’t your neighborhood kirana store selling steel pipes. It’s a tech-enabled B2B marketplace for construction materials, blending the old-school mandi vibe with new-age logistics.
They sell everything a builder or contractor could dream of — TMT bars, mesh nets, binding wires, welding rods, sanitaryware, bath fittings, tiles, paints, laminates, lighting, cables, switches, and even water heaters. Basically, if it can go into a building, SG Mart will sell it — probably with a delivery truck branded “APL Apollo’s cousin.”
Think of it as a “Flipkart for contractors”, but instead of discounts on smartphones, you get trade credit for rebar. The value proposition is clear: eliminate middlemen, centralize inventory, and deliver standardized materials directly to developers, contractors, and resellers.
Revenue primarily comes from product trading, with steel construction materials being the heavyweight contributor (over 60%). The remaining pie comes from electricals, tiles, and plumbing goods.
The kicker? SG Mart also has a subsidiary in Dubai — SG Marts FZE — presumably to grease the export-import flow and give “international aura” to investor presentations.
So yes, the business model is simple but ambitious: consolidate India’s highly fragmented building materials supply chain into one digital platform. Easy to say, hard to execute — but with the Gupta family playbook in hand, this mart may actually become a mall.
4. Financials Overview
Metric
Q2FY26 (Latest)
Q2FY25 (YoY)
Q1FY26 (QoQ)
YoY %
QoQ %
Revenue (₹ Cr)
1,704
1,793
1,144
-4.9%
+48.9%
EBITDA (₹ Cr)
28
15
36
+86.7%
-22.2%
PAT (₹ Cr)
26.5
16
32
+65.6%
-17.2%
EPS (₹)
2.11
1.42
2.56
+48.6%
-17.6%
Annualised EPS ≈ ₹8.44 → Implied P/E = 42.5x
Commentary: Margins remain low but steady — OPM around 2%. That’s thinner than the paint coating on a cheap wall putty. Yet, PAT growth looks juicy because scale is finally working. The earnings include ₹19 crore “Other Income,” which is doing more heavy lifting than some divisions.
5. Valuation Discussion – Fair Value Range
Let’s dissect the fair value through three lenses:
