1. Opening Hook
Steel prices crashed, inventories cried, and SG Mart’s Q3 numbers walked in looking guilty.
But before you throw this transcript into the “commodity nightmares” folder, pause.
Management insists Q3 wasn’t weak—it was misunderstood. According to them, the business actually earned ₹40 crore EBITDA, and the remaining damage was courtesy of steel behaving like crypto.
What’s more interesting is not Q3—it’s the audacity of what they’re claiming next: ₹60 crore EBITDA in Q4, ₹80–85 crore quarterly run-rate in FY27, and a casual ₹350+ crore EBITDA plan next year.
Sounds ambitious? Maybe. Delusional? Not entirely—if their four-pillar model actually delivers.
Stick around. This call gets bolder, louder, and significantly more confident as it goes on.
2. At a Glance
- Revenue volumes up 9% QoQ – Demand “soft,” but trucks kept moving anyway.
- Reported EBITDA ₹17 cr – Looks weak until management pulls out the “inventory loss” card.
- Underlying EBITDA ₹40 cr – Apparently hiding behind falling steel prices.
- Inventory loss ~₹20 cr – Steel corrected ₹2,500–3,000/ton and took profits with it.
- Q4 EBITDA guidance ₹60 cr – Same volumes, magically better margins.
- FY27 EBITDA target ₹350+ cr – Confidence level: unbothered, almost smug.
3. Management’s Key Commentary
“We are not scared
of ₹17 crores EBITDA.”
(Translation: Please ignore the reported number and focus on our adjusted optimism 😏)
“The actual business EBITDA was ₹40 crores in Q3.”
(Translation: Steel prices sabotaged us, not our execution.)
“We will take this to ₹60 crores in Q4.”
(Translation: Margins will heal faster than investor trauma.)
“Eventually ₹80–85 crores quarterly run rate in FY27.”
(Translation: Please start modelling exponential graphs.)
“We are standing on four pillars today.”
(Translation: Conglomerate arc unlocked.)
“By FY28–29, we will have 20 service centres.”
(Translation: Warehouses everywhere, excuses nowhere.)
“We don’t speculate on steel prices.”
(Translation: Except when inventory losses happen 😏)
4. Numbers Decoded
| Segment | Q3 Volume / EBITDA | Q4 Expectation | FY27 Vision |
|---|---|---|---|
| Service Centres (India) | 1.63 lakh tons / ₹1,500 per ton | Same volume, ₹2,000/ton | ₹150 cr EBITDA |
| Service Centre (Dubai) | ~15k tons/month | Stable | ₹50 cr EBITDA |
| B2B Metal Trading | 1.25 lakh tons / ₹500–600 per ton | ₹900–1,000/ton | ₹50 cr EBITDA |
| Renewable Structures | 17k tons | 25k tons | ₹120–150 cr EBITDA |
| New Trade Products | Nil | 10k tons | Margin booster |
