Whalesbook
📉 The Financial Deep Dive
Sanghvi Movers Limited posted consolidated revenues of approximately INR 720 crores for Q3 FY26. The core Crane Hiring segment saw its EBIT stand at INR 49 crores, a marginal dip from the INR 50 crores in the preceding quarter (Q2 FY26). However, the company recognized INR 8.4 crores in exceptional items, primarily attributed to the impact of the Labour Code and damaged assets, which affected net profitability.
The Wind EPC segment continued to be a drag, exhibiting sharp degrowth in revenues and reporting lower margins both year-on-year and quarter-on-quarter. The performance for the first nine months of FY26 was reported to be almost equivalent to the prior financial year's corresponding period.
🟢 Management Discussion & Strategy
Management presented the 'Elevate 2030' vision, a multiyear agenda targeting geographical expansion, enhanced customer-centricity, and technological integration. Key strategic moves include successful entry into the KSA market, securing the first order in Botswana, and exploring opportunities in Qatar and South Africa, with the GCC region identified as a significant growth engine.
Fleet utilization is projected to exit the year within the target band of 75% to 80%. Investments in capability building and infrastructure are expected to lead to margin normalization in H2 FY26 and further improvement in FY27, as new assets become productive.
Capex for FY26 is planned at INR 629 crores, with further deliveries expected in Q4. The company targets mid-teen ROCE and maintains a disciplined approach to capital allocation. Yields in the Saudi business are estimated in the 3.5%+ per month range, with breakeven anticipated within 10 to 14 months.
Management expressed hope that the anti-dumping duty on Chinese cranes could lead to margin improvement for the company. The order book execution target for FY26 revenue is set at INR 1,000+ crores.
🚩 Risks & Outlook
The outlook remains positive, driven by robust demand across infrastructure, renewables, and industrial segments, supported by government spending. However, risks include the continued underperformance of the Wind EPC segment and the impact of exceptional items. The company's ability to translate its global expansion strategy into sustained profitability and achieve margin improvement in FY27 will be critical for investors. Gross debt stands at approximately INR 650+ crores, with finance costs expected to rise with new asset capitalization, though offset by scale-up and higher utilization.