SG Mart Limited's Bank Loan Facilities Rated Crisil AA-/Stable; Upgraded from Crisil A

SG Mart Limited (formerly Kintech Renewables Limited) has announced that CRISIL Ratings Limited has upgraded the ratings assigned to the Company’s Total Bank Loan facilities aggregating to ₹940 Crore. The long-term bank facilities have been upgraded from ‘Crisil A/Watch Positive’ to ‘Crisil AA-/Stable’, and the short-term bank facilities from ‘Crisil A1/Watch Positive’ to ‘Crisil A1+’. These ratings have also been removed from ‘Rating Watch with Positive Implications’.

The rating upgrade reflects strong support from the SG group following the transfer of controlling shareholding to Sanjay Gupta, Chairman and MD of APL Apollo Tubes Limited, and his subsequent appointment as chairman of SG Mart. The upgrade also factors in the company's strong operational and managerial integration with the SG group, benefiting from its established market position, extensive business relationships, and financial flexibility.

SG Mart reported revenue growth of 8% to ₹6,315 crore in fiscal 2026. The company showed strong momentum in the first quarter of fiscal 2027, with revenue increasing by 14% year-on-year to ₹1,309 crore. Revenue growth is expected to remain healthy at 10–15% over the medium term. Operating profitability improved in fiscal 2026 with EBITDA margin rising to 2.2%, and further to 4.5% in Q1 fiscal 2027, driven by a better business mix and higher contributions from service centre and renewable structures segments. The operating margin is expected to remain above 2.5% over the medium term.

The company's capital structure remains strong, supported by an equity infusion of over ₹1,295 crore between fiscals 2024 and 2026. The total outside liabilities to adjusted networth ratio improved to 0.41 times as of March 31, 2026. The company plans to undertake capital expenditure (capex) of ₹1,500 crore over the next three years for setting up a manufacturing plant and service centers, to be funded through internal accruals and liquidity. As of March 31, 2026, the company had cash and equivalent of over ₹984 crore.

CRISIL highlighted that the ratings continue to reflect SG Mart's healthy business risk profile, with improving scale, diversified operations, and a strong financial risk profile supported by significant cash balance, healthy capital structure, and strong promoter support. These strengths are partially offset by modest operating margins and susceptibility to volatility in raw material prices and foreign exchange rates.