Mumbai: In Q3 FY26, SG Mart posted consolidated revenues of Rupees 1,644.43 crore, marking a 23.2 percent jump from Rupees 1,334.71 crore in the same quarter last year. On a sequential basis, revenue declined marginally by 3.5 percent from Rupees 1,704.25 crore in Q2. Net profit, however, nosedived to Rupees 10.44 crore from Rupees 37.15 crore a year ago and Rupees 33.15 crore in the previous quarter. The earnings dip was largely driven by higher expenses and compressed operating margins.
Sequential growth moderates
Compared to the previous quarter, SG Mart’s revenue dropped by Rupees 59.82 crore, while total expenses reduced only slightly to Rupees 1,644.85 crore from Rupees 1,690.11 crore. A rise in material costs (Rupees 153.49 crore vs Rupees 101.34 crore in Q2) and a marginal tax expense reversal in Q3 (Rupees 2.02 crore vs Rupees 6.15 crore in Q2) impacted profitability. EPS plunged from Rupees 2.11 in Q2 to Rupees 0.85 in Q3, underlining weaker bottom-line performance amid stable operating income.
Management Commentary/Key Drivers
The company did not publish formal management commentary in the filing, but notes indicate higher raw material costs and new employee stock option (ESOP) expenses of Rupees 0.37 crore in Q3. SG Mart's business model remains focused on building material trading and manufacturing, a shift that followed its rebranding from Kintech Renewables. Equity base also expanded during FY25 and FY26 through conversion of warrants, affecting per-share metrics.
Nine-month performance
For 9M FY26, SG Mart clocked consolidated revenue of Rupees 4,492.44 crore and net profit of Rupees 78.61 crore, compared to Rupees 4,261.15 crore and Rupees 71.27 crore in the same period last year. EPS for the nine-month period stood at Rupees 5.51, up from Rupees 6.28 in the same period last year due to dilution impact. With cumulative performance stabilizing, the company’s strategic focus now hinges on execution efficiency and cost management in the upcoming quarters.
Disclaimer: This article is based solely on publicly disclosed unaudited financial results. It does not constitute investment advice. Readers are advised to verify data independently before making financial decisions.
