Sanghvi Movers

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.

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.

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.

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 item^📎s totaling INR8 crores were charged in Q3 FY26, primarily due to Labour Code impact and damaged assets, with insurance claims under process.

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).