Sanghvi Movers Limited Q3 FY26 Earnings Call Summary

Summary

Sanghvi Movers Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026

Event Participants

Executives 4 Akshay Pore (Chief Strategy Officer), Gaurang Desai (Chief Executive Officer), Pradeep Mehta (Chief Financial Officer), Prajwal Kumar (Chief Business Officer)

Analysts 8 Aashish (InvesQ PMS), Bhagwat (Prosperity Wealth Management), Deepan Narayanan (TrustLine Holdings), Krishna Agarwal (Mangal Keshav Financial Services), Krupa Desai (Electrum Capital), Mohammed Farooq (Pearl Capital), Rajesh Agarwal (Moneyore Investment Advisors), Sunil Jain (Nirmal Bang Securities)

Financials & KPIs

Geographic & Segment Commentary

• India Operations: Strong demand across wind, steel, cement, and hydrocarbon sectors. Growth is driven by the ₹12.2 lakh crore government infra spend and renewable capacity additions (5.5 GW in 2025).
• Saudi Arabia (KSA): Market expected to grow 1.7x in 5 years. Focus is currently on infrastructure with plans to penetrate the oil and gas sector; yield profile is superior to India at 3.5%+.
• New International Markets: Secured first order in Botswana (Africa) and entering Qatar. These expansions use a “follow the customer” strategy and leverage existing leadership to minimize incremental fixed costs.
• Wind EPC (SFRL): Performance is volatile quarter-on-quarter due to Right of Way (ROW) and land issues but remains steady on an annual basis. EBITDA margins for this segment range between 10-12%.

Company-Specific & Strategic Commentary

• Elevate 2030: A long-term transformation framework focused on geographic expansion, digitization, and people culture rather than rigid short-term financial targets.
• Asset Diversification: Evaluating new product categories like spider cranes (via Mt&t partnership) and tower cranes, though the latter requires different core competencies.
• Operating Leverage: Management views FY26 as an “investment year” with margin normalization and leverage benefits expected to materialize in FY27 and FY28 as new fleet reaches full productivity.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Regional Expansion Strategy

• Question: Why expand into multiple geographies like Botswana, Qatar, and KSA simultaneously? (Krishna Agarwal)
• Answer: We follow our key customers to ensure win-win contracts. Qatar and KSA are treated as one GCC engine to cross-synergize leadership and costs (Akshay Pore).

Financial Performance & One-offs

• Question: Why did EBIT decline despite higher revenue and yields? (Sunil Jain)
• Answer: Impacted by ₹8.4 crore in exceptional items related to Labour Code provisions and asset damage (Pradeep Mehta).

Revenue Visibility

• Question: Can we expect ₹500 crores revenue in Q4 based on the presentation? (Krupa Desai/Mohammed Farooq)
• Answer: We target ₹1,000+ crores for the full year. While the executable book is higher, we conservatively account for 15% spillover into FY27 (Gaurang Desai/Pradeep Mehta).

Product Diversification

• Question: Why not enter the tower crane segment given high-rise demand? (Krishna Agarwal)
• Answer: We evaluate based on a “5C framework.” Tower cranes require different competencies from our current mobile/crawler fleet, though we are open to it if we find a differentiator (Akshay Pore).

Key Takeaway

Sanghvi Movers reported a steady Q3 FY26, characterized by high fleet utilization (75-80%) and robust demand across Indian core sectors and wind energy. The company is currently in a significant investment phase, executing a ₹629 crore capex plan and expanding its footprint into Saudi Arabia, Botswana, and Qatar. While quarterly margins saw some pressure from a ₹8.4 crore exceptional charge and a higher mix of Wind EPC revenue (10-12% EBITDA), the core crane rental business remains strong with yields in Saudi Arabia exceeding 3.5%. With a total order book of ₹1,860 crores and ₹1,200 crores executable within the year, management is confident of surpassing the ₹1,000 crore revenue mark for FY26. The strategic focus remains on the “Elevate 2030” vision, aiming to transition from a domestic provider to a globally competitive infrastructure services platform, with significant operating leverage expected to kick in by FY27.