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    Sanghvi Movers Limited

    SANGHVIMOV
    Services·8 Aug 2025
    Management Summary

    Sanghvi Movers reported a strong Q1 FY26 with a 65% YoY increase in total income from operations to ₹273 crores, driven by robust demand and improved capacity utilization. While blended EBITDA margins saw a decline to 38% due to a shift in revenue mix towards nascent, lower-margin segments, the company is strategically investing in new talent and expanding into new geographies like Saudi Arabia, where it secured its first order. The order book remains healthy at ₹767 crores, and management is optimistic about future growth, particularly in renewables and infrastructure.

    Highlights

    5

    • Total income from operations increased 65% YoY to ₹273 crores in Q1 FY26, marking a historical high for a first quarter.

    • Average capacity utilization improved to 80% in Q1 FY26, up from 77% in Q1 FY25.

    • The order book stands at ₹767 crores as of July 20, 2025, with approximately ₹500 crores slated for execution this financial year.

    • Successfully commenced operations in Saudi Arabia, securing the first order through its wholly-owned subsidiary, Sanghvi Movers Middle East.

    • Strategic investments of ₹131 crores in debt and mutual funds yielded an average ROI of 7.73% to 8.48% per annum.

    Concerns

    3

    • Blended EBITDA margin declined to 38% in Q1 FY26 from 49% in Q1 FY25, primarily due to a shift in revenue mix towards lower-margin EPC and renewal businesses.

    • Employee expenses increased from ₹10 crores in Q1 FY25 to ₹18 crores in Q1 FY26, reflecting investments in new talent and annual increments.

    • Management declined to provide forward-looking guidance on revenue and margins for divisions, citing company policy and competitive reasons.

    What Changed1

    vs Q2 FY26

    Guidance items9 → 3 (-6)

    Key financials

    Single quarter

    05 metrics
    1. 01Total Income from Operations₹273 Cr+80.8%YoY
    2. 02Blended EBITDA Margin38%
    3. 03PAT₹50 Cr+21.9%YoY
    4. 04Average Capacity Utilization80%
    5. 05Average Blended Yields2.1%

    Segment breakdown

    Crane Business
    ₹159 Cr Income from Operations56% EBITDA Margin
    Wind EPC (Sangreen Future Renewables)
    ₹106 Cr Total Income from Operations11% EBITDA Margin
    Project EPC Business Vertical
    ₹7 Cr Revenue13% EBITDA Margin
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹114 crores this quarter · ₹321 crores (FY26) planned

    raised — additional approval of ₹75 crores · mix of internal accruals and long-term debt borrowings from our bankers

    Debt

    Net ₹395 crores

    Liquidity

    Liquidity disclosed

    Surplus cash generated invested in various debt funds, mutual funds, short-term corporate bonds, arbitrage fund, and commercial paper.

    Guidance & targets

    3
    CategoryTargetPriority
    Capacity
    Wind Energy Capacity Addition (India)
    5 gigawatts
    		Medium
    Debt
    Debt-to-Equity Ratio
    below 0.35
    		High
    Market Share
    Crane Rental Player Positioning in Saudi Arabia
    top five
    		High

    Blended EBITDA Margin Trend

    Next quarter (Q2 FY26)
    Current38% in Q1 FY26 (down from 49% in Q1 FY25)
    TargetStabilization or improvement, especially as new segments scale.

    Why it matters

    To assess if the margin pressure from revenue mix shift is temporary or structural, and if scaling of new businesses improves profitability.

    Our overall EBITDA percentage for the quarter ended June 2025 was 38% vis-à-vis 41% in Q4 FY '25 and 49% in Q1 FY '25. There is a reduction in EBITDA percentage, which is primarily on account of change in revenue mix.

    How to verify

    key_financials.metrics[label='Blended EBITDA Margin']

    Risks & concerns

    3
    RiskSeverity

    Revenue Mix Impact on Margins

    Shift in revenue mix towards lower-margin EPC and renewal businesses contributed to a decline in blended EBITDA margin to 38% in Q1 FY26 from 49% in Q1 FY25. — Management acknowledged

    medium

    Competitive Intensity in Crane Rental Market

    Management noted ongoing competitive pressure in the crane rental market, stating interventions in sales force and value selling to maintain yields. — Analyst acknowledged

    medium

    Reduced Transparency on Financial Details

    Management's decision not to provide detailed segment-wise revenue splits or debt breakup on a quarterly basis limits investor visibility into operational performance and financial structure. — Analyst deflected

    low

    Q&A highlights

    8

    “So, your Company is in a growth phase, and we are building multiple business units across Saudi Arabia as well as the renewable business in Sangreen Future Renewables Private Limited. So, we are investing in our people, developing a people-first culture. And we are hiring talent that will help us fuel these growth engines in Saudi Arabia, as well as in Sangreen Future Renewables as well as our core business in India.”

    Addresses a significant increase in employee costs (from ₹10cr to ₹18cr YoY) and links it to strategic growth initiatives and new talent acquisition, including C-suite members.

    asked by Digant Bam

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY26 Performance Driven by Crane Business and Strategic Expansion

    Sanghvi Movers reported a robust Q1 FY26, with total income from operations increasing by 65% year-on-year to ₹273 crores, marking a historical high for a first quarter. This growth was supported by an improved average capacity utilization of 80% and a blended yield of 2.11%. The core crane business remained a strong contributor, generating ₹159 crores in income with a 56% EBITDA margin, demonstrating continued strength in its traditional segment.

    02

    Margin Compression Due to Evolving Revenue Mix

    Despite strong top-line growth, the company's blended EBITDA margin compressed to 38% in Q1 FY26 from 49% in Q1 FY25. This reduction is primarily attributed to a shift in revenue mix towards lower-margin segments, specifically the nascent Wind EPC and Project EPC businesses, which reported EBITDA margins of 11% and 13% respectively. Management indicated that revenue fluctuations are expected as these new, volume-driven businesses scale and their models evolve.

    03

    Significant CAPEX Plan and Strategic Investments

    Sanghvi Movers incurred a CAPEX of ₹114 crores in Q1 FY26, adding 21 cranes and other equipment. The Board has approved a revised total CAPEX plan of ₹321 crores for FY26, targeting the purchase of 75-80 cranes to enhance its core crane rental business in India. Additionally, the company invested ₹131 crores in various debt and mutual funds, generating an average ROI of 7.73% to 8.48%, intended for growth capital and diversification into new verticals and geographies.

    04

    Entry into Saudi Arabia and Group Structure Evolution

    The company successfully initiated its go-to-market strategy in Saudi Arabia, securing its first order through its wholly-owned subsidiary, Sanghvi Movers Middle East. This expansion is part of a broader vision to transform into a group of companies, with Sangreen Future Renewables Private Limited already contributing nearly 20% to the bottom line. Management aims for Sanghvi Movers to be among the top five crane rental players in Saudi Arabia by 2030, leveraging its 35 years of expertise and strong processes.

    05

    Leadership Changes and Team Optimization

    Sanghvi Movers addressed the departure of its previous Company Secretary due to personal reasons, while highlighting the appointment of Mr. Pradeep Mehta as CFO, a qualified CA with over 30 years of experience, and Mr. Vinav Agarwal as the new Company Secretary. These changes, along with other key hires, are part of an ongoing effort to optimize the team and strengthen leadership across its growing business units in India and Saudi Arabia, including the new Saudi subsidiary.

    06

    Robust Industry Tailwinds Supporting Future Growth

    Management emphasized strong macro tailwinds, including India's addition of 22 GW of solar and wind capacity in H1 (56% YoY increase) and planned cement capacity expansion of 43-45 million tonnes in FY26. Significant infrastructure projects, such as ₹3.4 lakh crores in road and expressway tenders, metro expansions, and airport modernizations, are expected to drive sustained demand for crane services, positioning the company favorably for future growth in high-opportunity verticals.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.