SANGHVIMOV - Sanghvi Movers

📊 NSE: SANGHVIMOV 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:48

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 revenue grew 57% YoY to INR 483 Cr from INR 307 Cr. FY 2024-25 total income grew 27% YoY to INR 823 Cr, primarily driven by the Renewable segment which accounts for a significant portion of the order book. The Wind segment specifically contributed 52% of revenues in FY24, up from 45% in FY23.

Geographic Revenue Split

India remains the primary market; however, the company is aggressively expanding into Saudi Arabia (KSA). In H1 FY26, INR 123 Cr of capex was deployed in India and INR 17 Cr in KSA. For the full FY26, the company has earmarked 35.6% of its total capex (INR 224 Cr out of INR 629 Cr) for the KSA subsidiary.

Profitability Margins

Net profit for FY 2024-25 moderated to INR 157 Cr from INR 188 Cr in the previous year due to higher depreciation and interest costs. Q2 FY26 blended yield stood at 2.04% per month, which is stable compared to previous quarters, though margins face pressure from the lower-margin EPC business.

EBITDA Margin

EBITDA margin for FY 2024-25 was 45%, a significant decline from 63% in the previous year. This compression is attributed to softer crane rental demand, prolonged monsoons, and a shift in revenue mix toward lower-margin engineering, procurement, and construction (EPC) services in the wind sector.

Capital Expenditure

The Board has approved a massive capex plan of INR 629 Cr for FY26, with INR 405 Cr for India and INR 224 Cr for KSA. In H1 FY26, the company already incurred INR 140 Cr of this total.

Credit Rating & Borrowing

The company maintains a healthy leverage profile with a debt-equity ratio of 0.36x as of September 30, 2025. The average borrowing cost is stable at 8.48% per annum on a net debt of INR 440 Cr.

⚙️ Operational Drivers

Raw Materials

The primary capital assets are heavy-duty cranes (lattice boom, telescopic, etc.). Operational costs are driven by fuel (diesel), spare parts, and maintenance materials, though specific percentage splits for these consumables are not disclosed.

Import Sources

Not explicitly disclosed, but the company invests in a 'world-class crane fleet' typically sourced from global manufacturers in Europe or China to maintain its leadership position.

Capacity Expansion

The company added 22 cranes in India and 9 cranes in Saudi Arabia during H1 FY26. The current fleet supports over 150 sites across India with a workforce of 2,500+ employees.

Raw Material Costs

Operating costs have increased significantly on a quarterly basis due to the establishment of the Saudi subsidiary. Fixed costs in KSA currently consist primarily of employee salary costs for the newly hired regional team.

Manufacturing Efficiency

Average capacity utilization was 70% in Q2 FY26, down from 80% in Q1 FY26. This decline was influenced by prolonged monsoons and election-related disruptions.

Logistics & Distribution

The company operates across 150+ sites, implying significant mobilization and demobilization costs for heavy machinery, though specific INR values for logistics are not provided.

📈 Strategic Growth

Expected Growth Rate

50.50%

Growth Strategy

Growth is driven by a robust order book of INR 1,239 Cr for FY26. The strategy involves aggressive expansion in Saudi Arabia to capture the 'top three' global position, increasing the fleet size through a INR 629 Cr capex program, and deepening penetration in the high-demand Renewable/Wind energy sector.

Products & Services

Heavy-duty crane rental services, wind farm EPC (Engineering, Procurement, and Construction) services, and specialized lifting solutions for infrastructure, power, and refinery sectors.

Brand Portfolio

Sanghvi Movers Limited (SML), Sanghvi Cranes.

New Products/Services

Expansion into the Saudi Arabian market (KSA) as a new geographic service offering, with 9 cranes already added to the region.

Market Expansion

Targeting the Middle East via the KSA subsidiary with a dedicated local team and a planned investment of INR 224 Cr in FY26.

Market Share & Ranking

The company is a leader in the Indian crane rental industry and aims to reach a top-three global ranking.

Strategic Alliances

Recent execution of a major project with Reliance Industries Limited involving over 75 cranes and a capital expenditure exceeding INR 50 Cr.

🌍 External Factors

Industry Trends

The industry is shifting toward larger capacity cranes to support taller wind turbines. There is a trend of increasing revenue share from EPC contracts, which offers higher volume but lower margins (EBITDA margin fell from 63% to 45% as EPC share rose).

Competitive Landscape

Facing 'rising competition' in the domestic rental market, which has contributed to the moderation of EBITDA margins.

Competitive Moat

Moat is built on a massive, specialized fleet of cranes and a skilled workforce of 2,500+. The high capital intensity (INR 629 Cr annual capex) and technical expertise required for heavy lifting serve as significant entry barriers.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and government policy regarding renewable energy, particularly wind power capacity additions.

Consumer Behavior

Shift in client preference toward integrated EPC solutions rather than pure crane rentals in the renewable sector.

Geopolitical Risks

Operations in Saudi Arabia expose the company to Middle Eastern geopolitical dynamics and local regulatory requirements for hiring (Saudi team).

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) 2015. Operations are subject to safety and transport regulations for heavy machinery movement.

Legal Contingencies

The company faces contingent liabilities of approximately INR 871 Cr as of March 31, 2023, related to VAT/CST dues. A favorable ruling was received from the Bombay High Court for FY2008-09 involving INR 120.3 Cr, but other cases remain pending.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 10% potential delay in the INR 1,239 Cr order book due to external factors like weather and client readiness. Margin volatility due to revenue mix shifts is also a key risk.