SG Mart Ltd (NSE: KRL) Q3 2026 Earnings Call dated Jan. 23, 2026
Corporate Participants:
Anubhav Gupta — Group Chief Strategy Officer
Archit Aurora — Vice President Marketing
Analysts:
Vivek Patel — Analyst
Rahul Kumar — Analyst
Aman Soni — Analyst
Vishal Mehta — Analyst
Rajeev Bhat — Analyst
Vikas Mistry — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to SGMart Limited Q3FY26 earnings call hosted by Motilal Oswal Financial Services Limited. We are pleased to welcome the management of SGMart. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Anubhav Gupta from Sgmart Limited. Thank you. And over to you sir.
Anubhav Gupta — Group Chief Strategy Officer
Thanks to Motilal oswal for hosting SGMart for its quarter three FY26 earnings call and I welcome all the participants who have joined. I am accompanied by by my colleagues. Mr. Suraj Kumar, the CFO Mr. Amit Thakkur, Director Mr. Archit Arora, Leader Service Center Business Mr. Namika Gulati, Leader Renewable Business and Mr. Naman Bastogi, General Manager Strategy.
If you look at the third quarter, the tough environment persisted in third quarter with the decline in steel prices and softness in the demand though the financial performance is below expectations. But we are not disappointed with our business performance. If you look at our third quarter revenue, the sales volume has increased 9% quarter on quarter. So both B2B metal trading and renewable structure businesses are ramping up. We are not scared of 17 crore EBITDA which we reported for the third quarter because the actual business EBITDA was 40 crore rupees for the third quarter because of the softness in steel prices there was inventory loss of around 20 crore rupees as we carry 2025 days of inventory. And there was sharp correction in the steel prices to the tune of 2,500 to 3,000 rupees per ton. And plus there are minor 2,3 crores of business expenses which we incur to build the renewable structure and open profile business.
I’ll talk about it shortly. About it. So it is important to understand that how we are at 40 crore of quarterly EBITDA at business level and how we are going to take this to 60 crore rupees in quarter four and eventually to 8085 crore quarterly run rate in FY27. So we will give you the clear picture that how we are achieving 40 crore in the current quarter like which went by quarter three, how we’re going to increase it by 50% in quarter four and how it’s going to further increase to 8085 crores quarterly run rate in FY27.
So there are like four businesses on which SGMart is standing today. Four pillars. Number one pillar is the service center business wherein we have four operational service centers in India and one in Dubai. Five new service center. Five new service centers will be operational in FY27. And we have already started identifying 10 more locations for which the land acquisition work has started. So by end of FY28, early FY29 we shall have all 20 service centers up and running. And over here we are offering three products services. Number one is stock and sell of HR foi.
Number two is cut to length metal sheets and number third is embossed specialized checkered sheets for various industrial uses. So service center business. If you see quarter three we did around 163,000 tons in total with 50,000 tons of monthly run rate 50,55,000 which is coming per service center. Now in quarter three the EBITDA was slightly lower at around 1500 rupees per ton. In general we make 2000 rupees per tonne. But here the spreads were lower by 500 rupees per ton because the market was on the declining side in terms of raw material prices. So there was some pressure on sales and lack of demand.
So we had to offer some discounts to our customers. But in quarter four the revenue will be similar because the new service centers will start contributing from Q1 Q2 of FY27. So quarter four the volume will remain same around 160,000 tonnes. But the EBITDA spread will improve to 2,000 rupees per ton which is the real estate margin for the business. Then the second business is the B2B metal trading. In B2B metal trading we did around 125,000 tons of volume in quarter three. In quarter four also we expect similar volumes. And of course the EBITDA spread will improve here as well.
In quarter two the EBITDA spread was around 500600 rupees range. Again because of declining steel prices there was pressure on sales, lack of demand. So since the steel price correction has got arrested, so the business will make real spreads of 900 to 1000 rupees per tonne. So these two businesses, the volume will remain flattish in Q4 but EBITDA spreads will improves sequentially which will improve the overall profitability for these two businesses. The third business is the renewable structures, the solar structures, what we are selling to IPPS and OEM customers in India. So in quarter three we did around 17,000 tonnes of sales volume.
In quarter four, based on the current order book we will be doing around 25,000 ton for Q3 and EBITDA spread. Of course it was a bit lower in third quarter because the business is ramping up. So now all the costs got incurred already. So the EBITDA spreads will be to the tune of around 4,000 rupees per tonne. We have a healthy order book here. And now we are impaneled with almost 2025 large OEM and IPPS in the country. So this business will continue to grow quarter on quarter. The fourth business which is part of these structures only wherein we wanted to start open sections starting from structure for residential rooftop.
Then cable trays for construction and furlings and. Racking structures. So we have identified all these products, the capacities are being built up and we launched one structure for residential rooftop in end of Jan. And the result has been so encouraging because these products are being sold through our group distribution network. So a lot of strength we are getting because it is selling under APL Polo brand with strong margins as well. So quarter three there was no volume from. From sale of these structures through trade route. But in, in. In quarter three, sorry in quarter four we are expecting 10,000 ton of volume from.
From. From these products. So. So. So Q4 and we are making around 6,7000 rupees per ton here because of brand premium. So if you. If you multiply these four business segments the the revenue volume which I explained and multiplied it with EBITDA per ton we come around 60 crore of EBITDA business EBITDA in Q4. And now we don’t expect any steel price correction. In fact there has been some price increase only in month of Jan. So let’s see how Feb and March pan out. If trend remains upward there could be some reversal of inventory losses which we incurred in Q3 that will be over and above 60 crores of business beta.
But we don’t want to like, we do not want to comment on that. But we are very confident that our business EBITDA of 40 crore in Q3 will go up to 60 crore of business EBITDA in Q4. Now let me explain how we are looking at FY27. So FY27 the service centers five operational and we will get volume from 23 service center which will start in H1 of FY27. So the five locations where we are putting up are. Number one is Punjab, number two is Jaipur. Number three is Kolkata. Number four is Indore and number five is Ahmedabad.
I mean Jaipur will start firstly followed by Punjab, Indore, Hindawad, also I mean work is on track. And Calcutta we shall be starting by end of FY27. So overall we may get around 750,000 tons of full year volume from service centers. And assuming 2000 rupees per ton EBITDA which we are generating we will get 150 crore EBITDA from the service centers. Then we have Dubai service center which is generating around 1012 crore of EBITDA on monthly basis. We do around, sorry we do around 15,000 tons of monthly volume with superior spread versus what we get in India.
So we will get around 50 crores for the full year. We get 1012 crore per quarter. So this translates to 50 crore for the full year from the Dubai service center. So the total service center business will give us 200 crore of EBITDA. Then the B2B metal trading business will see like you know, assuming the minimum volume depending on how steel supply shapes up. Although we are quite positive as more and more steel supply is coming up. But this is something where we are dependent on these steel suppliers. So we are not giving aggressive guidance here.
We are being very, very conservative. So we are taking the same run rate. What we are doing 125,000 tonnes per quarter. So full year will be 500,000 tonnes. And here the EBITDA spread will be 800 900. So 50 crore will come from B2B business, B2B metal trading business. Then we come to solar structures and the other structures what we are selling. So all in all we have developed 250,000 tons of annual capacity for solar structures and 250,000 tonnes capacity for the other structures which we will sell through trade channel. So total it will be 0.5 million ton.
500,000 ton of annual capacity for solar structures. We have assumed volume of around 180,000 tons for full year which means run rate of 13,14,000 tonnes per month which we are confident of. And the profiles for the trade, the multiple other products for the trade segment here we are will do around 200,000 tonnes. So put together we will be around 350 to 400,000 ton of structures with EBITDA of around 4,000 to 5,000 rupees per ton which can give another 120 to 150 crore EBITDA. So all in all our business plan for FY27 stands at around 350 crore plus EBITDA.
And I mean the only risk to these numbers could be again a sharp correction in the steel prices which has been continuing for last two years. But at the Level the steel prices have come. We don’t expect it to hurt our P&L plus what has happened is that our absolute ebitda so now Q4 we do 60 crore of business EBITDA. So we shall close FY20 with around 140 crore of full year EBITDA versus 103 crore last year FY25. So still we are talking about 35%, 40% jump in absolute EBITDA and when this 140 crore becomes 350 crore so the impact from the steel prices also keeps on.
We saw this in journey of our another group company Apell Apollo Steel Pipes that when the EBITDA used to be small at absolute level, the steel prices fluctuation used to hit its P and L. But now that the absolute EBITDA is becoming big number then steel price fluctuation doesn’t hit the P and L very badly. So we are confident that no matter how steel prices behave, unless there is like 15, 20% crash, we should be able to achieve 350 crore plus EBITDA for FY27. In terms of balance sheet you see that the working capital days stood at 27 as at 12-31-2025.
This was slightly higher because of the advanced payments we made to steel suppliers ahead of the imposition of anti dumping duty on steel. So we just wanted to kind of book some steel because some restocking takes place. So. So we made some advance payments to the steel suppliers. So by March it will be better than 27 days what we reported. So we continue to maintain 50% earnings CAGR which is our long term guidance. Although FY26 was badly hit in the first nine months, still we will be delivering 40% kind of EBITDA growth. And fingers crossed FY27 there could be like 100% jump with the business model which I explained where we don’t see much of a challenge because it’s been two and a half years the company got into existence. Now we have everything ready to take off. All the systems, capacities, team, everything is in place. So with all the confidence and conviction we are talking about these financial numbers.
That’s all from our side. Happy to take questions now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vivek Patel from Fikom family office. Please go ahead.
Vivek Patel
Very good afternoon. Am I audible?
operator
Yes you are audible.
Vivek Patel
Thanks a lot for the opportunity sir. I just wanted to understand from Mr. Archit Arora and obviously Anurosa as well as to firstly the Jaipur service center if I’m not wrong was expected to become operational in Q4. And also so what caused what is probably causing the delay as you mentioned that you are planning to open the same in FY27 and broadly what are the key challenges that is faced by the company in expansion and service center as well? Although the company has ample cash on the books I believe 880 crore, 900 crore as of December. And also as you mentioned there are locations which are scouted through the country as well. We’ll be very thankful if we could expand on that.
Archit Aurora
Yeah. So just to answer the question on some delay on Jaipur operations beginning in quarter four so it is just delayed by a couple of months because of excessive rains in that area. The rains lasted up to November. Civil work was impacted for a couple of months. It’s back on track and we should be able to start operations by mid of March. And to answer on like the ability to be aggressive on the service centers. See I mean like I said now we have 20 service center locations on hand in India plus one in Dubai, four are operational, five work has started already.
The other sites I can name like Chennai, Hyderabad, Poyamtur, Hubli, Kolhapur, Kanpur, Ranchi, Vizag, Patna, Siliguri, Guwahati, Bhubaneswar in Odisha, all these sites we have activated the land acquisition process and maybe in 12 more quarters you will see we will keep updating you that we have logged sites at these locations and the work has started. So see I mean it took us like 34 quarters to get convinced that yes, I mean we can easily do 8,000, 9,000 ton of monthly volume from each service center. Right. With 2000 rupees per ton of ebitda so that we get desired the ROC of 25 30% now it’s been like 3 4/4 consistent, 3 4/4 that we have achieved this. So it gives us a lot of confidence and conviction that now we have to become aggressive and go all out. So January 2026 is that month where we have taken a call that now we’ll go all out and we want to establish these 20 plus 1 service centers as soon as possible.
Vivek Patel
Understood, thank you for that. Nextly EBITDA per ton as you were mentioning. So FY25 EBITDA per term was slightly above 900 rupees. And for this nine month it stood at slightly above thousand. So based on your plans of expansion of service centers and also increasing share of renewables over the next few quarters, how do you expect this number EBITDA per ton to change over the next say two years? FY27, 28.
Anubhav Gupta
So I think, I mean one should not look at the blended EBITDA per ton. Okay. What one should look at is that how each business vertical is performing. Although I mean it may appear like around 1800, 1900 rupees per ton. Okay, on branded basis but, but there is lot of scope to increase margins in the renewable structures and the other profile structures because once you start doing some of the like backward integration you can get all of the margins from quoting process. Right? So I think we are very clear that B2B business should be generating thousand rupees per ton.
Service center business in India should be generating 2,000 rupees per ton. Service center business in Dubai should be generating 5000 rupees per ton. Plus then the solar OEM business should be generating 3000 to 5000 rupees per ton. And the profile business which is trade led sales that should generate upward of five thousand six thousand rupees per ton. So, so we are very clear on this. And each business vertical has its own working capital requirements. So each business vertical will throw its own roc. Right? So we are not too much concerned that what will be the EBITDA per turn on blended basis. Rather what we look at is what will be the ROC for the overall company ROC at the overall company level.
Vivek Patel
And last question I had was on the financials. So the short term borrowings have reduced drastically from I think about 700 crores in FY25 to 130 now in December. While the interest cost has stayed in the range of 12 crore in quarter one and two and now it has increased to 17. Just wanted to understand why the interest cost has stayed the same while the debt has come down drastically. Thank you.
Anubhav Gupta
So see I mean here, I mean if you look at the, if you look at the interest cost which we account 13, 14 crore for the whole year, okay. For the quarter annualized is around 50, 55 crore rupees. So this translates that we have used like kind of loan of 740 crore. Short term, long term it, it is Surat’s call that how he wants to navigate with the bankers now out of 750crore. I mean so that’s the. That’s the loan or that’s the limits we have taken from the banks. Right? So half of this goes for the bill discounting, right? Because we sell on cash and carry.
So we get the receivable discounted from various banks. And plus there is a gross debt on the books which you can see around 134crore rupees. And then we use some bank limits while we import steel from overseas. So a lot of steel is always on high sea where I mean we have to fund those purchases. So that’s the breakup of like the quarterly interest cost of 1314 crore. Or I would say 5 crore per month. 4 crore per month run rate. But then at the same time we have 800 crore of cash on the books. Right? Which gives us around 15. Which gives us 15, 16, 17 crore of quarterly interest income also.
Vivek Patel
Yeah. Understood. This small follow up sir, how much of your steel requirements are you importing now?
Anubhav Gupta
Now it will become very less only in Dubai. Right. Because the Indian government recently imposed steel duty anti dumping tariffs. So for India anyways we were importing very less since April 2025 Anti dumping duties came in and now the government continued it for next two years. So nothing much here. Dubai of course it is all imported.
Vivek Patel
Understood sir. Thanks a lot and all the very best.
operator
Thank you. Our next question comes from the line of Rahul Kumar from Vicaria Fund. Please go ahead.
Rahul Kumar
Yeah. Hi. Can you just elaborate further on this interest cost breakup between the various heads which you mentioned. So how much was because of bill. Discounting, how much was because of short term cost.
Anubhav Gupta
50% is because of bill discounting. Okay. And 50% would be. 40% will be for import of steel. And rest would be like bank charges etc.
Rahul Kumar
Okay. And this short term debt also, right? 134.
Anubhav Gupta
Yeah. So that I’ve taken into account.
Rahul Kumar
Yeah. Which side? Okay. Okay. And how much the discounting we do on an average.
Anubhav Gupta
So. So normally like you can back calculate when I say 50% is bill discounting. Right. Interest cost. Sec. 7% is the interest rate. You can do back calculation.
Rahul Kumar
Okay. Okay. And okay. Second question I think on this renewables structure business can you give some some. More color on the order book status. How it has moved and what. What is it now?
Anubhav Gupta
Yeah. So order book is a 300 crore plus. Right. I mean which is enough to do volume of around 25,000 tons for the quarter four. So we are fully covered for that. And as we have installed almost 2 gigawatt of 1 gigawatt, 1 gigawatt, 1 1/2 gigawatt of structures we have already installed since we started the business in quarter one. Right. So there is lot of. Now there is a lot of acceptance in the market that SG Mart is already number two player and the impediment have become very easy now. It’s just that steel prices went up a bit. So purchases like the new orders will take 5, 10 days to settle. Because all the purchase heads of solar companies they are getting adjusted to the increase in steel prices. So maybe like early Feb, this 300 crore order book could be above 400 crores with the pipeline what we have in hand.
Rahul Kumar
Okay. Okay. So this 300 crore is only for the Q4.
Anubhav Gupta
No. 25,000 ton. If we do, the average realization is 75,000. So it’s around 200 crore. Under 200 crores.
Rahul Kumar
Got it? And correct me if I’m wrong then. How much volume did we get from. The two new rented facilities which have. Opened in the quarter?
Anubhav Gupta
So it’s around 3,4000 tons per month from each entity.
Rahul Kumar
Okay. Okay. So does that mean
Anubhav Gupta
now that we are setting up our own centers? Right. So we are not ramping those up. We’re just waiting for our centers to start. So once we start our center, so this 3,4000 ton will shift plus additional 5,6,5 6000 ton will capture extra market. Okay.
Rahul Kumar
Okay. Got it. Thanks.
operator
Thank you. Our next question comes from the line of Aman Soni from NVIST Analytics Advisory llp. Please go ahead.
Aman Soni
Hi, Am I audible?
Anubhav Gupta
Please go ahead.
Aman Soni
Hi, good evening sir. So first question again like this quarter also we are speaking about 60 crore EBITDA. And maybe I’ve joined a little bit late so maybe you must have explained it. So just wanted to understand from you the 60 crore EBITDA that we are targeting. And at the same time we are speaking about there is a little bit of slowdown in steel downstream products. Demand of steel downstream products. So how are we confident enough to achieve this big number in Q4?
Anubhav Gupta
So two things. One, that we already achieved 40 crore business EBITDA in Q3. But this gives us a lot of confidence for Q4 number one, number two, B2B. Metal business and service center business. We are assuming flattish sales volume. We are not factoring in any increase in the sales volume sequentially because the demand environment was weak in quarter three. So there was push sales which led us to offer some discounts to the customers. But now we have pulled off those discounts and we are getting the desired margin of 1000 rupees per ton in B2B and 2000 rupees per ton in the service center business.
So earnings will increase from improvement in the margins in B2B and service centers. Plus the solar business we did 17,000 ton volume. Now we are projecting 25,000 tonnes. Right. So 30% increase in the volume here. And margin will also expand as the operating leverage benefits come in. Plus the new products for trade like solar structure for the residential rooftop application that we launched. Then cable tray will start next month. Then the slotted angle which is used for racking system that will start. Then perlin structures for PV sheds that will start. So we are expecting almost 10,000 tonnes of additional volume from these products in the quarter four. And because they’re selling under APL Apollo brand so the margins are really high. So this gives us confidence that 60 crore is a very much achievable number in terms of business ebitda.
Aman Soni
Okay. And usually we speak about that business. EBITDA will obviously reflect in the bottom line as well. So can we expect the similar path?
Anubhav Gupta
So interest cost will be similar to the other income. Right? And tax rate will be slightly lower. Because Dubai is also contributing. So growth wise it will match. Yes. But because see what’s happening is that business is using cash to build capacities to open service centers. So the other income will slowly gradually keep on going down. Right? Like earlier we used to have 1100 crore cash on the books. Now we have 78790 crore cash. As we go on to acquire land for 20 location. For 10 more locations again we’ll have to use cash for capex.
Right? So we’re talking to some machine vendors where we purchase machinery for all the 10 service centers in one go. So that we get a very sweet deal. Right? So we may have to pay advances for buying of machinery. So I mean it’s just that other income will keep on going down as the business will use more cash. Otherwise the flow from EBITDA to Pact will be same.
Aman Soni
So let’s put 350cr etc target that we are taking for FY27. What is the bottom line are you anticipating there?
Anubhav Gupta
So I think let’s calculate here. Only other income Suraj will be like what 4050 crores for the full year. Next year 500. So 30 interest rates are going down. So. So 3040 cr. So 400 cr is naman. The 400 cr is the 400 cr is the EBITDA with other income. Okay. Then interest expense will be how much? 50 crores around 1515. All right. C35 into 0.234. So we will be around 250 crore Packed.
Aman Soni
More or less like it will also be growing in the direction only direction of ebitda. Understood. And the last quarter when we spoke on this EBITDA run rate so you mentioned really clearly like Q4 will be the one where our business dynamics will get defined in the terms of the EBITDA that we will be doing going ahead because of the product mix change. As you mentioned we are a little bit more focusing on the service center business and the emphasis will go down on the B2B business. And that’s why the steel prices impact will be over the quarters will be negligible. Right. So if that time has arrived or not like Q400 will. Can we assume it to be a next base for SGMart?
Anubhav Gupta
Sir, that’s why with a lot of conservativeness we are giving this number. Although our internal target is high. Right. So 60 crore is something which we shall achieve definitely. I mean you should have. I mean we could have delivered the performance in Q3 also if there was no inventory write downs. So yes, 60 crore here and then 65, 70, 80, 90. That’s how Q1 FY27 to Q4 will flow down to for us to achieve 350 crores. So we don’t see much of error in these numbers.
Aman Soni
Just last one clarification on the demand outlook. Maybe a little bit on the longer side. I went through the PPT of your group company as well. They are also the Chairman. Chairman has highlighted the ongoing slowdown in the construction particularly on the government capex side. So how do you see this and how do you see the pictures shaping up from here? Like are you also witnessing these kind of slowdowns to continue maybe for next few quarters.
Anubhav Gupta
I mean macro should be better than what it is. There is no doubt about it. Okay. But for us to be able to achieve our guidance, what we are focusing on is that either we are launching new products, we are getting into new entries or we are opening service centers in new locations. So it’s like new customer acquisition or new product addition. So we are not cannibalizing the existing business. Right? I mean the sales volume from service centers we have already taken peak number of 8,000 rupees per ton from the existing operational service centers. Now it may go to 9, 10,000, 11,000 if demand is good. So that’s the upside. But While giving you FY27 guidance we are factoring in 8000 ton only per month. From one service center. Because I mean factoring in the demand slowdown, if there is upside that numbers can definitely go up.
Aman Soni
Got it sir. That’s it from my side, sir. And all the best for the future. Thank you very much.
operator
Thank you. Our next question comes from the line of Vishal Mehta from Oak Lane Capital. Please go ahead.
Vishal Mehta
Hello sir. Am I audible?
Anubhav Gupta
Yeah Vishal, please go ahead.
Vishal Mehta
So my question was regarding the renewable division. Now I just wanted to understand if I’m having my calculations right. This quarter we did about 45 crores per month revenue with a 26,000 volume. And what we are effectively guiding for, for FY27 is for the solar business. This will become 110 crores and there will be a 15,000 volume per month. That’s for the, for the quarter, right? About five thousand per month. So what I’m saying is from seventeen thousand. So basically if I multiply that by four it’s close to about eighty thousand.
Anubhav Gupta
Okay.
Vishal Mehta
So eighty thousand. We’re expecting eighty thousand to go to one hundred and eighty. So I’m just trying to, just trying to understand how do we bridge this gap from 80 to 180 in the solar business as in duty. So because we have orders only worth 300, 400. So is there a visibility that we have for that? That is the first question and I can come back for the second one as in I’ll as that once this is done.
Anubhav Gupta
So, so, so Vishal, this 17, 000 ton which, which we did it only. We only did it from one plant in Ghaziabad. Now we, our rifle plant has started and our and our Pune plant is also starting in February. Okay. So our capacity will be three times of what it is right now. Number one. Number two, we had the order book of like 250 to 80 crores. Now it is 300 crore rupees. So we were just waiting for our capacities to start. Right. New capacities in Raipur and Pune to start. Before we go aggressive on the order booking.
Third. Third is that like I said there has been increasing steel prices in month of January. So all the, all the solar companies they have kind of delayed the purchases because they’re adjusting to the new steel price. Right? Everyone think that steel prices can’t increase so sharply. They may come down. So they may see that how fair pricing goes about. Right. And then they will start taking the calls. So order booking will come in Feb. We are not bothered about it. Number four is the kind of demand for solar structures which is going to come up Right.
Right now the market is around 50,000 tons a month. Okay. And we only did 5,000 ton. Okay. And we’re talking about 15, 20,000 ton to 180, meaning 15,000 ton a month. Right. So I’m not, I’m talking about like 20% market share, 20, 25% market share with the capacity as a number one leader. And I mean you talk to like top 10 IPPS of India, the kind of installations they have in their business plan. Some of our listed also you may get public data also. I mean that’s insane. So we believe that this 40, 50,000 ton monthly market could go to 70, 80,000 tons in next 2, 3 years on monthly basis.
Vishal Mehta
Okay. And sir, in terms of the margin profile in the, so we spoken about 4000 rupees per ton for this business. But in the presentation for the solar business, renewable business.
Anubhav Gupta
Yeah, yeah. So so we, we, we gave 6 to 8%.
Vishal Mehta
No, yeah, in the presentation it is 6 to 8. So is there a disconnect? Because that turns out to be a little 6,000 or so.
Anubhav Gupta
So we also here, I mean there are some products which are upcoming. Right. So there the NSR is a bit lower. So the blended NSR will be 65000 rupees per ton. Let’s take average of 7%. So 45005000 rupees.
Vishal Mehta
Got it, Got it. So the NSR for the new products is a little lower.
Anubhav Gupta
Yeah. Because that’s only zinc coating whereas solar structures are zinc plus aluminum coating.
Vishal Mehta
Great sir, very encouraging. Thank you so much. All the best.
Anubhav Gupta
Thanks. Thanks. Thank you. Sure.
operator
Thank you. Our next question comes from the line of Rajiv Bhatt from KL Securities. Please go ahead.
Rajeev Bhat
Yeah, good evening sir. I, I just had a couple of questions. One is related to, you know, the current geopolitical environment which is going on right between us, European, China and how it’s impacting the trade within India. So knowing with this Global Dynamics being the background, I just wanted to understand how exactly will it be impacting the SGFart’s ability to deliver on the guidance of EBITDA which you said 60 crores in Q4 and 80 crores per quarter going forward. And specifically what measures are you all taking to mitigate any kind of risk related to steel price volatility or any trade disruptions, etc.
Anubhav Gupta
So see, I mean the, in terms of risk management, okay, the steel prices in quarter three by end of December were at like almost low in the last six years. We saw that steel prices just before COVID After that There has been a massive rally in steel prices until 2023. And then they started coming down, right. 2024 and 25 and December 25th was the lowest. So. So, so we were like keeping inventory pretty low, right. And, and, and we were kind of confident although it’s very difficult to take a bet on commodity cycle. But we were fairly confident that steel prices should not be going lower than the like levels.
What we saw in, what we saw in December and today there have been, I mean till today there has been result from one steel mill which came out. So the EBITDA spreads of that company also they are pretty low. So Indian steel mills were sure that they had to increase pricing January onwards. So in risk mitigation only thing what we can do is keep minimum inventory levels. Right? We don’t want to speculate or take bets on steel price movements because that’s not part of our business plan. Never was, never will be. Secondly, on geopolitical I think how it can impact or how it is impacting global commodities is.
I mean the rise in pricing only, right. You take any commodity, the prices are going high only. So we work on pass through model, right. Our products are fully linked to the steel prices, how they behave domestically or internationally. So yes, I mean we don’t expect it to hurt too much on a full year basis in one quarter like quarter three got hit because of sharp correction. But, but it will not repeat. It will not repeat again and again. So what encourages us is that we generated 40 crore of business EBITDA in Q3 which will go to 60 crores in quarter four. I mean that’s what we are thinking.
Rajeev Bhat
Yeah. So my second question is related to you know last year, late last year Mr. Rohan Gupta from your group, he had basically shown confidence in the stock and he had done a purchase, open market purchase of 329 or so. You know, now that we intend to kind of grow up, you know the guidance which you all have given which kind of gives us also as investors confidence that if in case, if the stock price were to correct, you know, basis what provision, you know, what kind of guidance which was given in the past and the performance which you have clearly stated was because of situation which are outside the management’s control.
Right. So if at all the stock were to kind of correct negatively, I presume that the management has got the confidence to kind of do a similar kind of buyback from the open market. Any kind of thoughts on that particular thing in terms of the conviction of sticking to the guidance and thereby also Giving confidence in the extended investor community.
Anubhav Gupta
So definitely, I mean that, that that transaction happened in September 2025 right where the family added 3.5 million shares. And I mean we were confident on, we are confident on like how SGMART earnings trajectory will look like. Right? So yes, I mean the family, the management, the promoters, everyone is pretty bullish on the long term prospects of the company.
Rajeev Bhat
Thank you sir and all the best. And we are fingers crossed that the guidance is something which we actually see on the ground. Thank you so much.
Anubhav Gupta
Thanks.
operator
Thank you. Our last question comes from the line of Vikas Mistrial from Moonshot Ventures. Please go ahead.
Vikas Mistry
Yeah, thanks for the opportunity. Hi Anubhav. And hi Sudhir, how are you? So first of all very congratulations on expanding your portfolio in terms of renewable structures. So we have given some market share across this renewable and structures and how we are confident enough to get that much amount of market share and what is the competitive intensity across the segments.
Anubhav Gupta
So here there are two sales points. Number one is OEM which are India’s IPPS or Solar EPC players. Number two, these other structures which are sold through trade. So APL Apollo Group has 800 dealers across India which further sell to 50,000 retail shops. And those 50,000 retail shops sell to 200,000 fabricators. The channel to sell steel pipe or any other product which the group has been doing. So what we found out is that channel is same. Okay. So and the, and if you look at the slide number 15 there are two products on the left side which are operational.
Number one is the utility which is OEM sales point business. And second is it’s called strut which is, which is a, which is, which goes on the rooftop of residential structures. Okay. So this is sold through trade. We launched this product last month, December and I mean we are already selling like 50, 100 tons per month. Okay. Per day. 51 tons per day. I mean we only got like one mil. Three more mills are coming. So one mill is already full. So it’s the vast network which will drive the sales for these products. Okay. And as far as the ITP is concerned, the OEM led business, like I said, in last eight, nine months since we started we have already supply structure to install one and a half gigawatts of solar energy of solar power.
Which gives enough confidence to the industry that SGMART has established itself as a serious player to supply ground mounted solar structures for the industry here. The right to win is again steel which comes from Tata jsw, right? Coated steel. And we are already buying in Bulk getting advantage in terms of pricing and some benefit is passed on to the customer to win the orders.
Vikas Mistry
Okay so Anbu, apart from these products that we mentioned in presentation do we have another products which are lined up which are of similar size and which are of high value addition? Do we have them?
Anubhav Gupta
So maybe in service centers we are exploring selling off. So right now we sell HR lead sheets, metal sheets. We are working on some coated sheets also. Right. Maybe in next earnings call or maybe one quarter further we will, we will come back. We will come with business plan that how within the existing service centers we can expand the portfolio from normal or I would say HR metal sheets to coated metal sheets also.
Vikas Mistry
Yeah, thanks. Good to hear that. So my last question is itself on volatility towards that is dragging inventory losses making winter losses. So at what run rate of EBITDA where we feel comfortable with the 5 to 10% drawdown on maybe quarterly EBITDA level drag due to 3 to 4% drag in the pipeline.
Anubhav Gupta
This will keep on going down as our absolute EBITDA keeps on increasing. Like I said we have seen this.
Vikas Mistry
Sorry for interruption. Sorry for interruption. Anubhav, I’m just trying to pick your brains on the fact that at what EBITDA level it become pretty small. So our internal understanding says that at roughly 150 crores of EBITDA level that become pretty insignificant. So what do you take on that?
Anubhav Gupta
I think 350 crore we hit in FY27. Okay. We should be fairly okay then when we go 500 crore plus then the hit the pinch will be very very less. Yeah.
Vikas Mistry
Yeah. Thanks. Thanks Amber for that and kudos to the team and we hope that you continue to bring new products, high margin products and thanks a lot sooner you do.
Anubhav Gupta
Thank you so much. Thanks. Thanks so much.
operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Anubhav Gupta from SGMart Limited for closing comments.
Anubhav Gupta
Thanks everyone for joining in. I know that numbers look disappointing but in real we have done much better. And we will do much better in quarter four which will give lot of confidence to the investors that how we are going to achieve 350 crore EBITDA next year. Thanks so much.
operator
Thank you. On behalf of Motilal OSWAL Financial Services Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.