Sanghvi Movers Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

Sanghvi Movers reported Q3 FY26 revenue of INR719 crores, maintaining its annual guidance of INR1,000+ crores despite some quarterly volatility. The company is progressing with its INR629 crore FY26 capex plan, with significant deliveries expected in Q4. While gross debt stands at INR650+ crores, management highlighted strong demand, successful international expansion into Saudi Arabia and Botswana, and a robust inquiry pipeline of INR2,900 crores, aiming for margin normalization and working capital improvement in the coming quarters.

Highlights

  • Continued strength of demand across infrastructure, renewables, metal, cement, hydrocarbon, and core industrial segments.

  • Top line performance aligned with annual trajectory and healthy execution momentum in domestic and Middle East operations.

  • Long-term stable crane utilization range of 75% to 80% maintained, with Q3 utilization normalized to historical trends.

  • Successful entry into KSA market and first order secured in Botswana, opening doors to long-term opportunities in Africa.

  • Robust inquiry pipeline expanded to INR2,900 crores, indicating strong future demand.

Concerns

  • Exceptional items of INR8 crores charged in Q3 FY26 due to Labour Code impact and damaged assets.

  • Q3 revenue execution slowed down compared to strong capex plans, though management attributes this to timing differences.

  • Wind EPC segment experienced degrowth in revenues and lower margins (10-12%) compared to crane rental (50%+).

Key financials

3 periods

Headline

  • Exceptional Items
    ₹8 Cr
  • Wind EPC EBITDA Margin
    10%
  • Crane Rental EBITDA Margin
    50%

Q2 FY26

  • Crane Hiring EBIT
    ₹50 Cr

Q3 FY26

  • Revenue
    ₹719 Cr
  • Crane Hiring EBIT
    ₹49 Cr
    QoQ -2%

What they filed

Q1 FY27: revenue up 39.2%, net profit up 30.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue156 208 267 273 210 +35%236 +13%351 +31%380 +39%
EBITDA73 76 107 100 81 +11%85 +12%134 +25%125 +25%
Net profit29 33 54 50 36 +24%29 −12%69 +28%65 +30%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹629 Cr
    • Pending deliveries in India ₹121 Cr
    • Pending deliveries in Saudi ₹147 Cr
    So, thank you for the question. And we have a capex plan of INR629 crores, out of which substantial portion has already been delivered, more so in the last quarter. And we are expecting further deliveries from OEM. So around INR121 crores of capex is pending in India and INR147 crores is balance in Saudi. So we anticipate that this will be fulfilled over Q4, and we will be able to see the benefits of it going in the next financial year.
  • Debt Gross ₹650 Cr
    Gross debt will be around INR650-plus crores number.

Guidance & targets

Operating Metric

  • Crane Utilization Range Operating Metric · long-term · High confidence 75% to 80%
    We continue to operate within a long-term stable utilization range of approximately 75% to 80%.

    — Pradeep Mehta

Profitability

  • ROCE Profitability · on deployed capital · High confidence mid-teens range
    ROCE is targeted mid-teens range on deployed capital.

    — Pradeep Mehta

Revenue

  • Annual Revenue Revenue · current financial year · High confidence INR1,000-plus crores
    targeting our best to get the number, INR1,000-plus crores revenue we are targeting for the current year, conservative.

    — Pradeep Mehta

Breakeven

  • Saudi Operations Breakeven Breakeven · from start of operations · High confidence 12 to 14 months
    So as we have repeatedly told in our last meetings also, we are expecting 12 to 14 months, we are expecting for breakeven time for Saudi.

    — Pradeep Mehta

Market Share

  • Saudi Market Share Market Share · next 3 to 5 years · High confidence almost 5%
    we are looking at gaining a market share of almost 5% in the next 3 to 5 years, which may ask us to keep very relevant capital investment into the business.

    — Akshay Pore

Margin

  • Margin Normalization Margin · FY '27 · Medium confidence further improvement
    We therefore, expect margin normalization as we progress through the second half with further improvement as we enter FY '27.

    — Pradeep Mehta

What to watch in Q4 FY26

FY27 Capex Plan Disclosure

next financial year
Current Budgeting process ongoing, not yet disclosed
Target Disclosure of FY27 capex plan

Why it matters

Provides insight into future growth investments and capital allocation strategy.

Sir, we are running that budgeting process in the company. And once this budget is approved by the Board of Directors, we'll reveal about the capex for the next financial year, sir.

Risks & concerns

  • Quarterly revenue volatility due to timing differences

    medium

    Timing differences between quarters may occur for projects like wind EPC, but fundamental demand remains robust, and focus is on annual performance.

    Management acknowledged

  • Execution risks in multi-geography expansion

    medium

    Management mitigates this by following customers, leveraging repeatable capacity, and diversifying capital investment across regions (e.g., Qatar leveraging KSA fixed costs).

    Analyst addressed

  • Impact of anti-dumping duty on imported cranes from China

    medium

    Management noted 'things have been quiet' and 'status quo' since notification, but it could affect the industry and potentially improve margins.

    Analyst acknowledged

  • Near-term margin pressure from deliberate investments

    medium

    Current year margins reflect deliberate investments in capability building (operating base, safety/training, local capability in Saudi, enhanced systems) rather than structural cost pressure.

    Management acknowledged

  • Exceptional charges impacting profitability

    low

    INR8 crores charged in Q3 FY26 for Labour Code impact and damaged assets, with insurance claim under process.

    Management acknowledged

Q&A highlights

4 direct, 2 evasive
Capex spend slowdown on the ground Direct
Sir, as I mentioned that we don't see a slowdown happening in the market because as I mentioned, that our inquiry pipeline has increased to almost INR2,900 crores, and we are seeing traction in all the core industries. I hope I have answered your question.

Analyst questioned if strong capex plans were translating to ground-level execution, which management denied by citing a robust inquiry pipeline.

Asked by Deepan Narayanan

FY27 Capex plans Evasive
Sir, we are running that budgeting process in the company. And once this budget is approved by the Board of Directors, we'll reveal about the capex for the next financial year, sir.

Management deferred disclosing future capex plans, indicating they are still in the internal budgeting and approval phase.

Asked by Deepan Narayanan

Wind EPC segment degrowth and lower margins Partial
So for projects, wind EPC and all this business, normally, the timing difference between the quarter may occur. But fundamental demand remains robust. And as we go ahead, it will convert it. So we have to look from the annual basis, because see, quarter-on-quarter, it may move some volatility, but our focus remains on annual performance and then operational stability, and we are disciplined in capital deployed.

Analyst noted specific segment weakness, which management attributed to quarterly timing differences rather than fundamental demand issues, emphasizing annual performance.

Asked by Deepan Narayanan

Exceptional items impact on Q3 EBIT Direct
There are certain exceptional items are also there, which is given on the P&L statement. Exceptional items basically on the Labour Code impact, we have, I think we have provided in the books of account. And there is some assets which is damaged. So we have put up in the P&L conservatively. The insurance claim is under process. ... On group level, it is INR8 crores.

Management confirmed an INR8 crore exceptional charge in Q3, clarifying the reason for potential EBIT decline.

Asked by Sunil Jain

Rationale for simultaneous multi-geography expansion (KSA, Botswana, Qatar) Direct
So the basic rationale behind the KSA expansion, if you look at our vision, which will talk about delighting the world by providing sustainable and scalable engineering solution. So with this thought when we come up with a very executable framework, which allows us to deliver on this vision, very early, we started thinking of how we can grow beyond India as a market after 35 years. ... We are following our customers. So whatever customer connects we have established with Saudi market, we have a leadership team, which is very, very capable to transfer these capabilities and get business into different countries.

Analyst questioned the aggressive international expansion strategy, and management explained it as a strategic move to leverage repeatable capacity, follow key clients, and diversify risk across geographies.

Asked by Krishna Agarwal

Tower cranes opportunity and diversification Partial
So, thank you very much for the question again. But if you look at when we earlier spoke about 11 pillars of product portfolio expansion, this exactly means that we remain interested in exploring the opportunities about diversifying our products from crawler and tire-mounted cranes. ... And just to give you a complete closure, specifically about your question on tower cranes, we believe that the tower cranes require different competencies. The kind of competencies we have with our cranes are completely different than the tower crane operations.

Analyst probed a potential new business area (tower cranes), and management indicated interest in diversification but highlighted the need for different competencies for tower crane operations.

Asked by Krishna Agarwal

Q4 revenue target and annual guidance reconciliation Direct
So sir, just to reiterate, in Q3, our total revenue is around INR720 crores, INR719 crores to be exact. And we have been always maintaining a guidance of INR1,000-plus crores. So that gives a gap of INR300 crores. We still would like to maintain that. There may be a variation of plus/minus 5%.

Analyst sought clarity on the Q4 revenue target, and management reconciled it with the full-year guidance, implying a Q4 revenue of approximately INR300 crores with potential variation.

Asked by Mohammed Farooq

Domestic institutional participation and internal ownership Evasive
So I'll reply your first question. And then on the second question, I'll request my colleague, Gaurang. So on account of stakeholder engagement with the financial institution, mutual funds and all those, so you actually noticed that we have engaged E&Y. We have given a mandate to E&Y, and they are supporting us in the process. We will continue quarterly basis, connecting with the big investors, and that's the way we are planning with the support of E&Y. That's the first thing. ... About the stake enhancing, reducing, we can't comment on that because it's the UPSI. Right now, we can't give any guidance on that.

Analyst questioned efforts to increase domestic institutional ownership and promoter stake, with management outlining investor relations efforts but declining to comment on promoter stake changes as it's UPSI.

Asked by Mohammed Farooq

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Detailed narrative

Business Performance and Demand Outlook

Sanghvi Movers reported Q3 FY26 revenue of INR719 crores, contributing to a 9-month performance that is almost equal to the last financial year. Management reiterated its annual revenue guidance of INR1,000-plus crores, indicating an expected Q4 revenue of approximately INR300 crores with a potential variation of +/- 5%. The company noted continued strong demand across infrastructure, renewables, metal, cement, hydrocarbon, and core industrial segments, with its inquiry pipeline expanding to INR2,900 crores. Despite some quarterly volatility, particularly in the Wind EPC segment where EBITDA margins are 10-12% compared to 50%+ for crane rental, the overall demand fundamentals remain robust.

Strategic Geographic Expansion

The company is actively pursuing its 'Elevate 2030' vision, which includes geographical expansion. Following a successful entry into the KSA market, Sanghvi Movers secured its first order in Botswana, marking an entry into Africa. Management explained this multi-geography approach is driven by following customers, leveraging repeatable capacity, and diversifying risk. Saudi operations are expected to breakeven within 12-14 months, with a target of achieving almost 5% market share in the next 3 to 5 years. The expansion into Qatar is planned to leverage existing fixed costs from KSA operations.

Capital Expenditure and Debt Management

Sanghvi Movers has a strong capex plan of INR629 crores for FY26. A substantial portion has already been delivered, with INR121 crores pending in India and INR147 crores in Saudi expected in Q4. These investments are crucial for capturing the next multi-year growth cycle. The company's gross debt stands at approximately INR650 crores. Management emphasized disciplined capital allocation, with every capex decision evaluated under a return framework focused on utilization, yield, and long-term return on capital employed. The company aims to maintain a mid-teens ROCE on deployed capital.

Margins and Operational Efficiency

Current year margins reflect deliberate investments in capability building, including expanding the operating base, strengthening safety and training infrastructure, building local capability in Saudi, and enhancing systems for a larger fleet. These investments are expected to lead to margin normalization and further improvement as the company enters FY27, driven by operating leverage as new assets are deployed and utilized. The company maintains a long-term stable utilization range of 75% to 80%. Exceptional items totaling INR8 crores were charged in Q3 FY26, primarily due to Labour Code impact and damaged assets, with insurance claims under process.

Working Capital and Investor Relations

The receivable movement in the previous quarter was attributed to billing and milestone timing across multiple sites. However, collections have accelerated in the current quarter, and working capital metrics are expected to normalize in line with historical levels. The company confirmed it has engaged E&Y for investor relations to enhance engagement with financial institutions and mutual funds. While management discussed its 'Elevate 2030' vision, it declined to comment on internal ownership or promoter stake changes, citing it as unpublished price sensitive information (UPSI).

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