This article first appeared on GuruFocus .
-
Crane Utilization:Stable utilization range of approximately 75% to 80%.
-
Order Book:Consolidated order book of INR 1800 crores, with INR 1200 crores executable in the current financial year.
-
EBITDA Margins:Structurally healthy with operating leverage benefits as fleet scales.
-
Revenue Visibility:Strong demand visibility with a substantial portion of revenue secured through confirmed orders.
-
Capital Expenditure:Disciplined capital allocation with a focus on utilization, yield, and long-term return on capital employed.
-
Working Capital:Collections accelerated, expecting normalization in line with historical levels.
-
Middle East Operations:Steady scaling with favorable pricing dynamics and healthy yield profile.
-
Inquiry Pipeline:Expanded to INR 2000 crore - INR 3000 crore, reflecting sustained demand.
Release Date: February 09, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Sanghvi Movers Ltd ( BOM:530073 ) reported strong demand across infrastructure, renewables, metal, cement, hydrocarbon, and core industrial segments, aligning with their annual trajectory.
-
The company maintained a stable crane utilization range of approximately 75% to 80%, with expectations to exit the year within the targeted annual band.
-
Middle East operations are scaling steadily, with favorable pricing dynamics and healthy yield profiles, contributing to geographic diversification.
-
The company has a robust order book with strong revenue visibility, characterized by longstanding customer relationships and staggered execution schedules.
-
Sanghvi Movers Ltd ( BOM:530073 ) is transitioning into a multi-country infrastructure service platform, with FY'26 as a year of investment and geographic scaling, positioning for growth in FY'27 and FY'28.
Negative Points
-
Quarterly revenue execution slowed down during Q3, raising concerns about CapEx spend on the ground.
-
The company faces challenges in maintaining EBITDA margins due to deliberate investments into capability building and structural cost pressures.
-
There are concerns about the impact of exceptional items, such as labor code impacts and asset damage, affecting quarterly financial performance.
-
The domestic institutional participation remains limited, with only around 1% involvement, indicating potential gaps in investor engagement.
-
The company is exposed to risks associated with rapid international expansion, including potential execution risks and the need to manage pre-opening and initial operating costs in new markets.
Q & A Highlights
Q: Is management witnessing a slowdown in CapEx spend on the ground, and do they expect execution to pick up in the upcoming quarters? A: Gaurang Desai, CEO, stated that they do not see a slowdown in the market. The inquiry pipeline has increased to almost INR2900 crores, indicating traction in core industries. The CapEx plan for FY'26 is INR629 crore, with substantial portions already delivered, and further deliveries expected in Q4.
Q: What is the current gross debt, and how do you see finance costs and depreciation evolving? A: Pradeep Mehta, CFO, mentioned that the gross debt is around INR650 crore. As new assets are capitalized, depreciation will increase in line with fleet expansion. However, revenue scale-up will support operating leverage against this step-up.
Q: What is the strategic rationale behind Sanghvi Movers' rapid international expansion, and what are the potential risks? A: Gaurang Desai, CEO, explained that the expansion into Saudi Arabia and other regions is driven by the vision to provide scalable engineering solutions globally. The company follows its customers and leverages repeatable capabilities. Risks are managed by not exposing all capital to one country and following a strategic framework.
Q: How does the company plan to manage costs associated with international expansion to avoid fluctuations in profitability? A: Gaurang Desai, CEO, noted that the company has structured contracts to be cost-neutral, especially in Botswana. Saudi operations are expected to break even in 10 to 14 months, and fixed costs in Saudi will support business in Qatar, minimizing fresh investments.
Q: What initiatives are being taken to enhance engagement with domestic institutions and investors? A: Pradeep Mehta, CFO, stated that the company has engaged ENY to support stakeholder engagement and plans to connect with investors quarterly. The company is focused on long-term value creation and maintaining transparency with stakeholders.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
