Event Participants
Executives
3 Gaurang Desai, Pradeep Mehta, Rishi C. Sanghvi
Analysts
8 Abhinav, Jay Bharat Trivedi, Kushal Goenka, Riya, Shubhankar Gupta, Sriram, Sunil Jain, Trushank Jani, Vivek Rakholiya
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹393 crore | +40% YoY vs ₹281 crore; QoQ +₹29 crore from ₹350 crore |
| Revenue from Operations | ₹380 crore | +39% YoY vs ₹273 crore; Q4 FY26 was ₹350 crore |
| EBITDA | ₹139 crore | +30% YoY vs ₹107 crore; margin 35% vs 40% Q4 FY26 (lumpiness from provisions, MTM, one-time incentives, mix shift) |
| Profit After Tax | ₹65 crore | +30% YoY vs ₹50 crore (Q4 FY26: ₹69 crore) |
| Cash Profit | ₹104 crore | vs ₹82 crore YoY |
| Core Crane Rental EBITDA Margin | 47% | Down 6pp vs 53% FY26; ~49% ex-forex & one-time incentive; ~51% expected as ECL normalizes |
| Crane Fleet / Gross Block | ₹492 crore / ₹3,300 crore | Fleet value supporting rental operations |
| Utilization (India/Botswana) | 86% | Yield 2.29% |
| Utilization (GCC) | 86% | Yield 4.10%; GCC total income ₹19 crore, EBITDA margin 23% |
| Group DSO | 116 days | Crane rental 124 days, E&C 98 days, GCC 201 days; GCC collections improved in July |
| Gross Debt-to-Equity | 0.54x | vs guided FY27 ceiling of 0.72x; treasury surplus >₹300 crore; net D/E ~0.3x |
| Group ROCE | ~16% (Mar-26) | FY27 guidance 16.25-16.5% |
| Capex | ₹652 crore approved | ₹92 crore capitalized in Q1; ~₹560 crore deployment in H2; ~15% incremental revenue expected |
Geographic & Segment Commentary
India & Botswana (Crane Rental): Utilization 86% at yield 2.29%, with yields improving during the quarter. DSO for crane rental at 124 days; ECL provisions (₹6.2 crore) tied to aging receivables expected to rationalize during FY27 as collections improve.
GCC (Saudi Arabia & Qatar): Saudi operation achieved cumulative EBITDA positive in its first year; new orders secured in Qatar; Botswana commissioning completed on schedule with $1.1 million repatriated. Yield 4.10% expected to be maintained (4%), EBITDA margin currently ~47% (lower than India due to higher operating costs), DSO at 201 days reflecting geopolitical disruption but significant July collections; zero working capital draw in KSA.
Sanghvi Future Renewables (E&C): Order book ~₹680 crore vs inquiry pipeline ₹4,656 crore; EBITDA margin 18% pre-unallocated expense (10-12% allocated), expected to settle at 12-15%. Business doubling annually (₹250 crore → ₹500 crore → targeting again); contributes ~37-40% of revenue in Q1 with full-year mix expected at one-third.
Company-Specific & Strategic Commentary
Elevate 2030 / International Expansion: Group now operates across India, Saudi Arabia, Botswana, and Qatar with professional leadership; ranked third-largest crane rental company globally by International Cranes magazine by cumulative lifting capacity (behind Mammoet and Sarens). Capex split between India (₹190 crore) and KSA region (₹324 crore, ₹316 crore revenue-generating); new depot expansion strategy across KSA and Qatar planned but undisclosed.
Sangreen as Asset-Light Complement: E&C business is deliberately capital-light (working-capital asset light, no balance sheet capex), generating incremental EBITDA while feeding crane utilization through integrated wind execution. Managed as complementary to the capital-heavy crane business, with all group capex still dedicated to crane rental.
Digital & Organizational Transformation: HRMS and CRM software scheduled to go live; enhanced customer centricity and digital initiatives emphasized. One-time frontline/management incentive awarded for surpassing ₹1,000 crore top-line milestone in FY26 (contributed ~1pp margin dilution in Q1).
Capital Allocation Discipline: CFO characterized mix shift towards ancillary equipment/gross rentals as deliberate capital allocation—lower margin but zero capital consumption, accretive to ROCE and cash generation. All capex investments must clear internal hurdle rates/IRR criteria before deployment.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 Consolidated Revenue | ₹1,400-1,500 crore | Unchanged; supported by ₹1,250 crore executable order book and ₹5,600 crore inquiry pipeline |
| FY27 EBITDA | ₹525-575 crore | vs ₹429 crore FY26 (20-30% growth); core crane margin structurally intact ~51% as ECL on aged receivables normalizes |
| FY27 Blended ROCE | 16.25-16.5% | Balance sheet conservatively managed; gross D/E within 0.72x ceiling |
| FY27 Capex | ₹652 crore total | ₹92 crore capitalized in Q1; remainder in H2; ~15% revenue uplift expected from new assets |
| FY28 Revenue Growth | +30-40% | Scaling from Sangreen order book conversion and incremental fleet yields |
| FY28 EBITDA | ₹650-700 crore | +20-30% on FY27 base; crane rental + two-thirds/one-third E&C mix maintained |
| KSA EBITDA Margin | ~47% current, improving | Operating cost leverage expected with experience; yield maintained at ~4% |
Risks & Constraints
| Risk | Context |
|---|---|
| West Asia Geopolitical Disruption | Conflict between USA/Israel and Iran causing temporary supply chain disruptions and elevated DSO (201 days in GCC). Management views as temporary, expects normalization within FY27; orders placed with OEMs, no delays anticipated in bringing KSA capex online by Q3-Q4 FY27. |
| Receivables Aging / ECL Provisions | Group DSO at 116 days with crane rental at 124 days; ₹6.2 crore ECL provision hit Q1 margins (2pp). Management expects rationalization during FY27 as aged debtors are recovered; significant July collections in GCC cited as evidence. |
| E&C Execution Risk | POCM accounting creates lumpy revenue recognition; ~15% of order book may spill into next year. Client-side delays (site readiness, OEM supply, ROW issues) and internal execution factors may compress margins from 18% pre-allocated toward 12-15% normalized band. |
| Classified asset quality (KSA) | KSA EBITDA margin structurally lower (~47% vs India mid-50s) due to higher operating costs; DSO structurally longer in region. Management leveraging 36 years of Indian operating experience and local partnerships to close the gap. |
Q&A Highlights
Capex Allocation India vs. Saudi Arabia
- Question: Where would one incremental crane be deployed—India or KSA—and what decides? (Vivek Rakholiya, Ficom Family Office)
- Answer: Transformation from a crane rental company to a capital allocator; deployment depends on inquiry pipeline, order visibility/duration, look-ahead visibility, market share requirements, and internal hurdle rates. All investments must maintain group ROCE and meet IRR criteria. Saudi is not a response to India—both markets are positive; India yields improved over last quarter and are not capped by competition. (Rishi C. Sanghvi, MD)
Debt Levels and ECL Provisions
- Question: Would debt reach ₹1,000-1,100 crore at 0.72x D/E, and is this comfortable? What about ECL provisions—India or KSA? (Riya)
- Answer: 0.72x is gross D/E; treasury surplus exceeds ₹300 crore, so net D/E is ~0.3x. ECL provisions are almost entirely India-related. Q4 FY26 actually saw a ₹3-4 crore add-back; the Q1 charge is a statistical model output on aged receivables and expected to normalize during FY27 as dues are recovered. (Gaurang Desai, CEO; Rishi C. Sanghvi, MD)
GCC Capex Amid Geopolitical Disturbance
- Question: Are cranes being procured on time in the Middle East despite the conflict? (Sunil Jain, Nirmal Bang Securities)
- Answer: No structural changes to the Middle East thesis; only temporary supply chain disruption expected to normalize within this financial year. ~₹316 crore of revenue-generating capex in the region has orders placed with OEMs; no expected delay via Jeddah or Dammam; revenue generation expected Q3-Q4 FY27. (Rishi C. Sanghvi, MD)
Sangreen Growth Trajectory and Margins
- Question: What market share can Sangreen capture, and what are the historical inquiry-to-order conversion ratios? (Trushank Jani, Moneybee Investments)
- Answer: Corrected premise—₹686 crore order book and ₹4,656 crore inquiry pipeline, not 2 GW/5 GW. Doubling revenue annually for three consecutive years (₹250 crore → ~₹500 crore → targeting again); ~15% of order book may slip to next year due to POCM timing. FY28 guidance on page 19: revenue +30-40%, EBITDA +20-30% to ₹650-700 crore. (Rishi C. Sanghvi, MD)
Wind E&C EBITDA Margins and Utilization Math
- Question: E&C margins jumped from 11% to 18% YoY—is 10-12% sustainable? And how is utilization calculated? (Shubhankar Gupta, Equitree Capital)
- Answer: 18% is pre-unallocated expense; allocated basis is 10-12%, expected to settle at 12-15%. Utilization is rental revenue divided by days (not yield). Q1 utilization of 86% equates to near 100% effective utilization once mobilization/demobilization and maintenance are factored. (Pradeep Mehta, CFO; Rishi C. Sanghvi, MD)
Debt Currency and Cost of Borrowing
- Question: Will incremental debt be INR or foreign currency, and what is the cost? (Jay Bharat Trivedi, InCred AMC)
- Answer: India debt in INR at ~8% ±0.25%; overseas debt in USD at SOFR plus spread ~5.5-6%. Weighted average cost not disclosed quarterly; will be disclosed at half-yearly balance sheet. (Pradeep Mehta, CFO; Rishi C. Sanghvi, MD)
Global Ranking & Safety Record
- Question: How is the third-largest global ranking determined, and how is safety maintained across geographies? (Kushal Goenka, Mangal Kesha Financials)
- Answer: Ranking is by International Cranes magazine based on cumulative lifting capacity; #1 Mammoet, #2 Sarens. Safety record is near-impeccable despite some accidents; SOPs, checklists, safety councils, and transfer of seasoned operators/safety officers from India to KSA under local leadership (Dr. Almanaseer). Sanghvi is one of the fastest crane companies approved to work with Aramco and has executed an Aramco shutdown job. (Rishi C. Sanghvi, MD)
KSA Sector Mix and Depot Expansion
- Question: Which sectors drive KSA inquiries, and will there be more depots in GCC? (Sriram, ithought PMS)
- Answer: 0-12 month inquiry pipeline of ~$22 million breakdown on page 23: infrastructure $4-7M, housing/entertainment $2-3M, industry $3-4M, combined industry/housing $4-7M, energy ~$1M. Depot expansion is in the strategic plan across KSA and Qatar; location and timelines withheld. (Pradeep Mehta, CFO; Rishi C. Sanghvi, MD)
Key Takeaway
Sanghvi Movers reported a strong Q1 FY27 with total income of ₹393 crore (+40% YoY), EBITDA of ₹139 crore at 35% margin, and PAT of ₹65 crore (+30% YoY), while absorbing a 6pp core crane-margin decline from ₹6.2 crore ECL provisions, ₹1.4 crore non-cash MTM, one-time performance incentives, and an intentional shift toward capital-light ancillary/gross rentals—resulting in underlying core margin of ~49% expected to normalize toward 51%. The company holds a ₹1,250 crore executable order book, ₹5,600 crore inquiry pipeline, secured FY27 guidance of ₹525-575 crore EBITDA (unchanged), and achieved cumulative EBITDA positive in Saudi Arabia in its first year while maintaining 86% utilization at 4.10% GCC yields. With ₹560 crore of the ₹652 crore capex yet to deploy in H2, management projects ~15% incremental revenue and FY28 EBITDA of ₹650-700 crore (+20-30%), though West Asia geopolitical disruption, elevated GCC DSO of 201 days, and E&C execution lumpiness under POCM accounting remain the key watch items through the year.