Sanghvi Movers Limited

Sanghvi Movers reported a robust H1 FY26, with total income from operations growing 57.3% year-on-year to ₹483 crores, compared to ₹307 crores in H1 FY25. Profit After Tax (PAT) also saw a significant increase of 24.3% YoY, reaching ₹87 crores. This strong performance was primarily fueled by sustained demand across India's infrastructure and renewable energy sectors, with the crane rental business contributing 68% of Q2 FY26 revenue.

The company successfully commenced commercial operations in the Kingdom of Saudi Arabia in Q2 FY26, with over 30 cranes already deployed on site and operating at 100% utilization. Management highlighted a substantial annual crane rental market of $800 million to $1 billion and a healthy inquiry pipeline of $45-50 million, expected to translate into strong revenues over the next 24 months. The strategic vision includes owning upwards of 100 machines in Saudi Arabia within the next 24 months, supported by a committed capex of ₹225 crores for approximately 55 cranes.

Sanghvi Movers has approved a substantial capex plan of ₹629 crores for FY26, with ₹405 crores allocated for India and ₹224 crores for its KSA subsidiary. In H1 FY26, ₹140 crores (₹123 crores in India and ₹17 crores in KSA) was already incurred. The majority of the remaining capex is expected to come online in Q3 and Q4 FY26, earmarked as growth capital for future expansion, particularly in Engine-2 businesses and the new Saudi operations.

Q2 FY26 saw average capacity utilization at 70%, a decrease from 80% in Q1 FY26, which management attributed to seasonal monsoon impact. Despite this, Q2 utilization was an improvement from 68% in Q2 FY25. Additionally, receivable days increased in H1 FY26; however, management stated there was no inherent concern, with reconciliations pending and an expectation of definite improvement in Q3.

The company reported a robust consolidated order book of ₹1,239 crores as of October 31, 2025, with ₹756 crores expected to be executed in FY26. Despite this strong visibility, management maintained its FY26 top-line growth guidance of 25-30% and declined to revise it higher, citing a higher base. They also explicitly refrained from providing blended EBITDA margin guidance due to the dynamic revenue mix and board directives, making it challenging for analysts to model future profitability.

The renewable business is expected to stabilize its EBITDA margin at 10-12% as it scales up, which is considered a significant premium to the market. In Saudi Arabia, while the business provides a higher yield compared to India, operating costs are also higher due to local requirements and manpower. Consequently, the EBITDA margin in Saudi Arabia is currently on par with or slightly below India's crane rental business, with a long-term goal of achieving parity through operational efficiencies.