Credit Rating- Revision

September 17, 2026 The Listing Department Department of Corporate Services/Listing National Stock Exchange of India Limited BSE Limited “Exchange Plaza” Bandra-Kurla Complex, P hiroze Jeejeebhoy Tower, Bandra (E), Mumbai-400051 Dalal Street, Fort, Mumbai-400001 NSE Symbol : SGMART Scrip Code: 512329 Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), we hereby inform you that CRISIL Ratings Limited (“CRISIL”) has upgraded and removed from ‘Rating Watch with Positive Implications’ the ratings assigned to the Company’s Total Bank Loan facilities aggregating to Rs. 940 Crore, as under: Instrument Type Existing Rating / Revised Rating / Rating Action Outlook Outlook Long Term Bank Facilities Crisil A/Watch Positive Crisil AA-/Stable Upgraded and removed from ‘Watch Positive’ Short Term Bank Facilities Crisil A1/Watch Positive Crisil A1+ Upgraded and removed from ‘Watch Positive’ The Rating Rationale communication received from CRISIL is enclosed for your kind reference. The above information shall also be made available on the website of the Company at www.sgmart.co.in. This is for your kind information and necessary records. Thanking You, Yours faithfully For SG Mart Limited Sachin Kumar Company Secretary and Compliance Officer ICSI M. No. F13972 Place: Noida Encl: a/a SG MART LIMITED (formerly known as Kintech Renewables Limited) Registered Office: H. No. 37, Ground Floor, Hargovind Enclave, Vikas Marg, Delhi-110092 Corporate Office: SG Centre, Plot No. 37C, Block-B, Sector-132, Maharishi Nagar, Gautam Buddha Nagar, Noida, Uttar Pradesh, India – 201304. Tel: 0120-6918000| Email: compliance@sgmart.co.in Website: www. sgmart.co.in | CIN: L46102DL1985PLC426661 Rating Rationale September 16, 2026 | Mumbai SG Mart Limited Ratings upgraded to ‘Crisil AA-/Stable/Crisil A1+’; Removed from ‘Watch Positive’ Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.940 Crore Instrument Crisil AA-/Stable (Upgraded from 'Crisil A'; Long Term Rating Removed from 'Rating Watch with Positive RBI Implications') Crisil A1+ (Upgraded from 'Crisil A1'; Removed Short Term Rating RBI from 'Rating Watch with Positive Implications') Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has removed its ratings on the bank facilities of SG Mart Limited (SG Mart) from ‘Rating Watch with Positive Implications’ and upgraded the ratings to ‘Crisil AA-/Crisil A1+’ from 'Crisil A/Crisil A1’ while assigning a ‘Stable' outlook to the long-term rating. The rating upgrade reflects the strong support from the Sudesh Gupta (SG) group following transfer of controlling shareholding to Sanjay Gupta (Chairman and MD of APL Apollo Tubes Limited; ‘Crisil AA+/Stable/Crisil A1+’), along with his appointment as chairman of SG Mart. The upgrade also factors in the company's strong operational and managerial integration with the SG group. The company is expected to benefit from the group's established market position, extensive business relationships and financial flexibility, which are likely to support its growth and expansion. Furthermore, the promoters have formally articulated their commitment to provide operational and financial support to group entities, including SG Mart. Revenue grew 8% to Rs 6,315 crore in fiscal 2026 despite decline in steel prices, supported by higher contribution from service centre and renewable structures segments. The company reported strong momentum in the first quarter of fiscal 2027, with revenue increasing 14% on-year to Rs 1,309 crore, driven by volume growth and increasing contribution from value-added products. Revenue growth is expected to remain healthy at 10–15% over the medium term, supported by ramp-up of service centres, addition of new service centres, expansion in the renewable structures business and the company's strong dealer network. Operating profitability improved in fiscal 2026, with Ebitda (earnings before interest, tax, depreciation and amortisation) margin increasing to 2.2% from 1.8% in fiscal 2025, aided by a better business mix and higher share of revenue from service centre, steel processing and renewable structure segments. Profitability improved in the first quarter of fiscal 2027, with the Ebitda margin rising to 4.5% from 3.1% in the first quarter of fiscal 2026. The operating margin is expected above 2.5% over the medium term, driven by scaling up of high-margin service centre and renewable structures segments, stabilisation in steel prices following the imposition of anti-dumping duties on Chinese steel imports, and increasing operating leverage from the expanded business base. Capital structure remains strong, supported by equity infusion of over Rs 1,295 crore between fiscals 2024 and 2026. Total outside liabilities to adjusted networth ratio improved to 0.41 time as on March 31, 2026, as against 0.90 time as on March 31, 2025. Interest coverage ratio also remained healthy at 4.02 times in fiscal 2026 and is expected to improve to over 6 times over the medium term. The company plans to undertake capital expenditure (capex) of Rs 1,500 crore over the next three years for setting up a manufacturing plant and service centers to increase value-added products. The capex will be funded through internal accrual and liquidity of the company. The company had cash and equivalent of over Rs 984 crore as on March 31, 2026. The ratings continue to reflect the company’s healthy business risk profile, with improving scale, diversified operations across trading, service centres, downstream distribution and renewable structures, and strong financial risk profile supported by significant cash balance, healthy capital structure and strong promoter support. These strengths are partially offset by modest operating margin and susceptibility to volatility in raw material prices and foreign exchange (forex) rates. Analytical Approach Crisil Ratings has combined the business and financial risk profiles of SG Mart and its subsidiaries. Also, Crisil Ratings has applied its group notch-up framework to factor in the business and financial support that SG Mart receives from the SG group. Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Healthy increase in revenue, supported by a strong distribution network SG Mart has scaled up its operations significantly over the past three years, with revenue increasing to Rs 6,315 crore in fiscal 2026 from Rs 5,857 crore in fiscal 2025 despite a sharp correction in steel prices. Growth was driven by the company's strategic shift towards high-value segments, particularly service centres and renewable structures, with service centres contributing 51% of revenue in fiscal 2026, compared with 34% in fiscal 2025, while the renewable structures business scaled up to 9% of revenue. The momentum continued in the first quarter of fiscal 2027, with revenue increasing by 14% on-year to Rs 1,309 crore, supported by higher volume and increasing contribution from value-added products. Revenue is expected to grow at a healthy rate over the medium term. The company has a healthy and growing network. Products are supplied throughout India via 680 dealers operating through seven cut-to-length (CTL) service centres and plans to add 15–18 stations in the next 2–3 fiscals. As CTL is a value-added service, the segment is likely to support growth in revenue and profitability. Sound policies minim [Showing first 8,000 characters — download PDF for full document]