Sanghvi Movers Ltd Q1 FY27 Earnings Analysis

- The company targets a consolidated revenue growth of around 30% for FY27, consistent with past performance. - The core crane rental business is expected to sustain a positive growth rate of 30% year-on-year. - Sangreen Future Renewables (engineering & construction) has shown revenue doubling from FY24 to FY26, with a sizable opportunity ahead, but growth is managed carefully to maintain margins. - Order book of INR 1,053 crores as of May provides strong deployment clarity. - Inquiry pipeline expanded to around INR 4,000 crores, indicating strong future demand. - KSA and Middle East operations target continued growth with a pipeline of $50 million over 24 months. - Growth in wind EPC segment expected but chosen selectively to maintain profitability. - The company aims to maintain or improve operational efficiency with higher asset utilization.

- Sanghvi Movers targets a consolidated revenue growth of around 30% for FY27, continuing the momentum from FY26. - Core crane rental business is expected to sustain a 30% year-on-year growth, contributing significantly to EBITDA and PAT. - The engineering and construction (E&C) business under Sangreen Future Renewables is expected to double revenue and deliver asset-light, high-ROCE growth, though with a lower EBITDA margin. - EBITDA margin for the group may show some decline due to the mix shift towards E&C business, but absolute EBITDA and profits are expected to grow. - In Saudi Arabia and Qatar, EBITDA margin is targeted to improve from 40-45% to 45-48% due to operational efficiencies. - Operating costs in Middle East are higher but manageable due to lean operations and brand recognition. - ROCE in E&C business is very high (~70%), contributing positively to return ratios. - Order book of INR 1,053 crores and inquiry pipeline of nearly INR 4,000 crores provide strong revenue visibility.

- Deferred capex of approximately INR 120-165 crores from FY26 to FY27, partially deployed. - Total capex planned for FY27 is around INR 391 crores, including INR 190 crores in India and INR 200 crores in KSA for new cranes (about 61 cranes). - An earlier capex of INR 123 crores for 57 cranes is in various stages; some cranes are already in country, others pending shipment. - Board-approved incremental capex of INR 201 crores in addition to the above, sanctioned on May 20, 2026. - Commitment to deploy spillover capex from previous year along with new capex to strengthen fleet in KSA and Qatar. - Capex decisions aligned with robust inquiry pipeline worth $50 million over next 24 months. - Strategic focus on expanding presence in Middle East (KSA, Qatar) and growing core crane rental business alongside renewables EPC under Sangreen Future Renewables.

- The company has planned and approved significant capex for the current and coming financial years, including: - INR 201 crores of capex approved by the Board for deployment in FY27. - Spillover capex of INR 120 crores from the previous year. - Total capex around INR 201 crores + INR 120 crores planned for new cranes. - Net debt as of March 31, 2026, stands at INR 612 crores with a comfortable net debt-to-equity ratio of 0.47x. - The management acknowledges that with increased capex, the debt level will increase but intends to manage it below 0.5x in the medium term. - No explicit mention of fresh fundraising through equity in this transcript. - The company appears to be funding expansion primarily through debt and internal accruals, with no announced plans for new equity issuance at present.

- Current consolidated order book as of May FY27 stands at INR 1,053 crores, fully executable in the current financial year. - Order book represents strong revenue visibility and execution clarity for the company. - Inquiry pipeline has expanded to almost INR 4,000 crores, reflecting real customer demand and project activity. - In the Middle East (KSA and Qatar), there is an inquiry pipeline worth $50 million (~INR 400 crores) for the next 24 months. - Additional confirmed orders in KSA stand at around INR 5 million with a high probability conversion of INR 13-18 million. - Company is selective in executing contracts, focusing on maintaining healthy EBITDA margins and delivery capability. - The strong order book supports the target of approximately 30% consolidated revenue growth for FY27.