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    Sanghvi Movers

    SANGHVIMOV
    Services·22 May 2026
    Management Summary

    Sanghvi Movers delivered robust Q4 and FY26 results, with full-year revenue growing 36.9% to INR 1,070 crores and PAT increasing 17.7% to INR 184 crores. This performance was underpinned by improved asset utilization and strong demand from the crane rental and renewables segments. The strategic KSA expansion is gaining traction with positive monthly EBITDA, though supply chain risks for capex deployment and rising employee costs are areas of focus for management.

    Highlights

    5
    • FY26 Revenue from operations grew 36.9% YoY to INR 1,070 crores, driven by 35% growth in credit rental revenue in India.

    • Q4 FY26 EBITDA margin remained strong at 40.6%, with FY26 EBITDA margin at 40.1%.

    • Average capacity utilization improved to 79% in FY26, up from 74% in FY25, reflecting stronger fleet deployment.

    • The KSA business has started generating positive monthly EBITDA and is expected to achieve cumulative positive YTD EBITDA by end of H1 FY27.

    • The consolidated order book stands at INR 1,053 crores, fully executable in FY27, supported by an inquiry pipeline of almost INR 4,000 crores.

    Concerns

    3
    • Potential for capex postponement in KSA due to supply chain disruptions and shipping congestion, which could impact delivery timelines for new cranes.

    • Employee costs increased by 103% YoY in FY26, attributed to investment in leadership talent and the growth of the manpower-heavy E&C business.

    • Rising diesel prices are a concern, with discussions ongoing to pass through costs for 50% of contracts, while the other 50% have free supply from clients.

    Key financials

    Metrics

    16

    Periods

    3

    Headline

    4
    • Net Debt (as of 2026-03-31)
      ₹612 Cr
    • Net Debt-to-Equity Ratio
      0.47 x
    • Average Cost of Borrowing
      8.1%
    • Net Worth
      ₹1,310 Cr

    Q4 FY26

    6
    • Revenue
      ₹351 Cr
      YoY+31.4%
    • EBITDA
      ₹143 Cr
      YoY+25.7%
    • EBITDA Margin
      40.6%
    • PAT
      ₹69 Cr
      YoY+27.8%
    • Average Capacity Utilization
      87%

    FY26

    6
    • Revenue
      ₹1,070 Cr
      YoY+36.9%
    • EBITDA
      ₹429 Cr
      YoY+15.6%
    • EBITDA Margin
      40.1%
    • PAT
      ₹184 Cr
      YoY+17.7%
    • Average Capacity Utilization
      79%

    Segment breakdown

    Crane Rental Business
    65% Share of Operating Revenue (FY26)
    Renewables Segment
    31% Share of Operating Revenue (FY26)
    Project EPC
    4% Share of Operating Revenue (FY26)
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹639 crores

    Debt

    Net ₹612 crores · 0.5x EBITDA

    Cost 8.1%

    Guidance & targets

    7
    CategoryTargetPriority
    Growth
    Overall Consolidated Revenue Growth
    Maintain current year's growth level
    High
    Growth
    Crane Rental Business Growth
    30%
    High
    Profitability
    KSA Business YTD EBITDA
    positive
    High
    Utilization
    KSA Utilization
    85% to 90%
    High
    Yield
    KSA Yield
    upwards of 4.5%
    High
    Yield
    India Yield
    2.1% +/- 5% deviation
    High
    Working Capital
    E&C Business Working Capital Days
    50 to 60 days
    High

    KSA Business Cumulative EBITDA Positivity

    H1 FY27
    CurrentPositive monthly EBITDA
    TargetCumulative positive EBITDA

    Why it matters

    Verifies the profitability and success of the strategic KSA expansion, a key growth driver.

    KSA business has started generating positive monthly EBITDA recently, and we are expected to achieve positive ITD, EBITDA by end of this first half current financial year.

    How to verify

    detailed_narrative[title='KSA Expansion & Profitability']

    Risks & concerns

    3
    RiskSeverity

    Supply chain disruption and shipping congestion for KSA capex

    Shipping lines to the Middle East are congested, increasing costs and potentially delaying the delivery of new cranes, which may lead to capex postponement.Management acknowledged

    medium

    Rising employee costs

    Employee costs increased by 103% YoY in FY26, attributed to strategic investment in leadership talent and the growth of the manpower-heavy E&C business.Analyst acknowledged

    medium

    Fluctuation in diesel prices

    Diesel prices are increasing, and while 50% of contracts have free supply, the company is in advanced discussions to pass through costs for the remaining 50%.Analyst acknowledged

    medium

    Q&A highlights

    7

    “this number is a consolidated number, and we are showing on a gross block basis. And when in the accounting we are presenting, it has been taken care of Ind AS, and that's why the number shows like this, but we cannot net off those liabilities. We are netting off with those FD, which are linked to these liabilities.”

    Clarifies the accounting treatment for net debt, indicating that treasury FDs linked to liabilities cannot be directly netted off, leading to a higher reported net debt figure than a simple gross debt minus treasury calculation.

    asked by Krupa Desai

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Financial Performance in Q4 and FY26

    Sanghvi Movers reported robust financial results for Q4 FY26 and the full fiscal year. Revenue from operations for Q4 FY26 stood at INR 351 crores, marking a 31.4% year-on-year growth compared to INR 267 crores in Q4 FY25. For the full year FY26, revenue reached INR 1,070 crores, a significant 36.9% increase over INR 782 crores in FY25. PAT also saw healthy growth, rising 27.8% YoY in Q4 FY26 to INR 69 crores and 17.7% for the full year to INR 184 crores.

    02

    Improved Asset Utilization and Stable Yields

    The company achieved an average capacity utilization of 87% in Q4 FY26 and 79% for the full year, an improvement from 74% in FY25, reflecting better fleet deployment and execution. Average blended yields remained stable at 2.24% per month for Q4 FY26 and 2.12% for FY26. Management expects to maintain India yields around 2.1% with a +/- 5% deviation, indicating confidence in pricing power.

    03

    Strategic Shift and Segment Contribution

    The revenue profile is strategically shifting, with the core crane rental business contributing 65% of operating revenue in FY26, renewables 31%, and project EPC 4%. The renewables segment, driven by Sangreen Future Renewables, is an asset-light, high ROCE business that doubled its revenue, contributing significantly to incremental growth beyond the core 30% growth in the crane rental business. This shift explains the focus on business unit level profitability rather than blended EBITDA margins.

    04

    Robust Order Book and Inquiry Pipeline

    As of May 14, FY27, the consolidated order book stands at INR 1,053 crores, which management stated is fully executable in the current financial year. The inquiry pipeline is exceptionally strong, valued at almost INR 4,000 crores, reflecting real customer demand and project activity. This robust pipeline provides significant visibility for future revenue generation.

    05

    KSA Expansion and Profitability

    The Middle East expansion, particularly in Saudi Arabia and Qatar, is showing strong momentum. The KSA business is already generating positive monthly EBITDA and is expected to achieve cumulative positive YTD EBITDA by the end of H1 FY27. The region maintains high utilization rates of 85-90% and yields upwards of 4.5%, driven by a crane shortage and Sanghvi's strong reputation. The company plans to spend approximately INR 320 crores in the Middle East this year for new cranes.

    06

    Capital Expenditure and Debt Management

    Total capital expenditure for FY26 was INR 474 crores, with INR 373 crores in India and INR 101 crores in KSA. The company has approved new capex of INR 190 crores for India and INR 200 crores for KSA in the current financial year, totaling approximately INR 513 crores for FY27. Net debt as of March 31, 2026, stood at INR 612 crores, with a healthy net debt-to-equity ratio of 0.47x and an average borrowing cost of 8.12%, reflecting a comfortable leverage position.

    07

    Industry Tailwinds and Growth Drivers

    Management highlighted strong tailwinds across key sectors that require heavy lifting services. India added a record 6.1 gigawatts of wind capacity in FY26, with targets of 100 GW by 2030. Other sectors like thermal power (300 GW by 2030), nuclear power (100 GW by 2047), refinery (310 MTPA by 2030), cement (850 MTPA by 2030), and steel (300 MTPA by 2030) are all undergoing significant expansion, positioning Sanghvi Movers for sustained demand.

    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.