Sanghvi Movers Ltd Q2 FY26 Earnings Analysis

- Sanghvi Movers has a strong order book of ₹767 crores as of July 2025, with ₹273 crores revenue in Q1 FY '26, indicating a robust pipeline. - Management expects to secure additional orders throughout the year, supporting sustained revenue growth. - The company is investing ₹321 crores in crane rental business in India and ₹100-150 crores in Saudi Arabia, signifying confidence in incremental revenue growth from both markets. - Expansion in Saudi Arabia is targeted to position within the top five crane rental players by 2030, with ongoing deployment of cranes already in place. - Renewable business (Sangreen Future Renewables) accounts for 20% of the bottom line, with significant future growth potential. - Year-on-year growth in Q1 revenue was 65%, showing momentum in sales volumes and revenues. - Estimated steady demand from infrastructure, renewables, oil & gas, and EPC sectors. - No formal forward guidance but optimistic about revenue growth due to diversified sector demand and CAPEX investments.

- The company is optimistic and aligned with India and Saudi Arabia's growth stories, targeting high-growth sectors like hydrocarbons, renewables, cement, metros, railways, thermal power, oil and gas. - Sangreen Future Renewables now accounts for 20% of the bottom line, with strong growth potential. - The company is investing aggressively, including a ₹321 crore CAPEX plan for crane rental business in India, funded by a mix of internal accruals and long-term debt (debt-to-equity capped at 0.35). - Expansion in Saudi Arabia targets becoming a top-five crane rental player by 2030, tapping into $500 billion of regional construction projects. - Revenue grew 65% YoY in Q1 FY26; management expects continued incremental revenue from investments and expansions, though no specific forward guidance on exact numbers is provided. - Renewables and EPC businesses are nascent but expected to scale and smooth revenue recognition over time.

- Total CAPEX planned for core crane rental business in India for FY '26 is ₹321 crores (revised from earlier ₹246 crores). - In Q1 FY '26, ₹114 crores CAPEX incurred in India, adding 21 cranes directly from port to site. - Additional ₹200 crores CAPEX planned for India during the year, adding around 55 cranes. - CAPEX of ₹100-150 crores planned for Saudi Arabia to support go-to-market and scale operations; 12 cranes already deployed there. - CAPEX funded through a mix of internal accruals (10-30%) and long-term bank debt. Debt-to-equity ratio expected to remain below 0.35. - Strategic investment in Sangreen Future Renewables Private Limited, which accounts for 20% of bottom line; this renewable business is a future growth engine. - ₹131 crores invested in mutual funds and debt instruments as growth capital for diversification and expansion.

- The company has planned a CAPEX of ₹ 321 crores for FY '26 for crane rental business in India. - Funding for CAPEX will be through a mix of internal accruals and long-term debt borrowings. - Debt-to-equity ratio is guided to be maintained below 0.35; funding typically involves 10% to 30% internal accruals, rest through debt. - No specific mention of new equity fundraising in the current call. - The net debt as of now is ₹ 395 crores. - In Saudi Arabia, CAPEX of around ₹ 100-150 crores is planned; confidence in business plan exists but not all backed by firm orders yet. - Management has not disclosed detailed breakup of term loan vs working capital debt currently.

- As of July 20, 2025, Sanghvi Movers Limited reported an order book of ₹767 crores. - Out of this, ₹273 crores were billed (revenue recognized) in Q1 FY 2025-26. - Approximately ₹500 crores of the order book is pending execution over the remaining three quarters of the financial year. - The company is confident of securing additional orders beyond this current order book within the financial year. - The order book includes a mix of traditional crane rental business and new EPC business, though exact splits are not disclosed. - The order book is considered robust and provides a positive outlook for revenue growth. - Management compares current order book levels with past years to indicate future revenue potential but does not provide formal forward guidance.