# 1. Financial Performance ## A. Key Figures * **Total Income:** **₹210 Cr** Q2 FY'26 (+35% YoY) · **₹483 Cr** H1 FY'26 (+57% YoY) * **EBITDA:** **₹88 Cr** Q2 FY'26 (+9% YoY, 42% margin) · **₹195 Cr** H1 FY'26 (+11% YoY, 40% margin) * **PAT:** **₹36 Cr** Q2 FY'26 (+24% YoY) · **₹87 Cr** H1 FY'26 (+24% YoY) * Net Debt & Equity: ₹440 Cr net debt, 0.36x debt/equity ratio, ₹1,212 Cr net worth (as of Sep-25) ## B. Revenue Growth * **Strong H1 Momentum:** Robust year-on-year revenue growth in H1 driven by elevated demand in infrastructure and renewable energy end markets. * **Q2 Sequential Dip:** Top-line declined from Q1, indicating potential seasonality or project timing effects despite strong annual growth trend. ## C. EBITDA & Margins * **Margin Resilience:** EBITDA margin held above **40%** in H1 despite rising depreciation and capex reinvestment, signaling pricing power and cost discipline. * **Capex & Depreciation Outlook:** FY'26 depreciation guided at **₹130–135 Cr**, aligned with **₹630 Cr capex** deployment, supporting future capacity expansion. ## D. Profit After Tax * **Solid Bottom-Line Growth:** PAT expanded in line with revenue, reflecting operating leverage, though Q2 saw a sequential decline from elevated Q1 base. ## E. Balance Sheet * **Strategic Capital Deployment:** **₹192 Cr** deployed in debt and arbitrage funds yielding **6–9% annually**, earmarked as growth capital for global Engine-2 initiatives. * **Working Capital Pressure:** Increase in trade receivables and days outstanding due to client reconciliations, with improvement expected in Q3. * **Liquidity & Structure:** Maintains **₹150 Cr** sanctioned cash credit limit; gross block stands at **₹2,750 Cr**, reflecting asset intensification. --- # 2. Order Book & Demand ## A. Key Figures * **Consolidated Order Book:** **₹1,239 Cr** (as of Oct 31) · **₹756 Cr** expected FY26 execution (10–15% spill to FY27) * **Inquiry Pipeline:** **>₹2,000 Cr** open inquiries · **$50 Mn** international pipeline ## B. Executable Order Book * **Backlog Visibility:** Robust order book of ₹1,239 Cr provides strong revenue visibility for FY26, with minor slippage anticipated due to monsoon and site delays. * **Segment Mix Impact:** EBITDA margins will be shaped by revenue mix across crane rental, renewables, and Saudi operations, reflecting the current backlog composition. * **Disclosure Limitation:** No segmental breakup of order book provided due to **Board restrictions**, limiting transparency on EPC vs. rental allocation. ## C. Inquiry Pipeline * **Demand Momentum:** Exceptionally strong inquiry pipeline exceeding ₹2,000 Cr underscores confidence in infrastructure growth and validates aggressive capex plans. * **International Traction:** $50 Mn global pipeline, including **INR 5 Cr** in Saudi Arabia, signals successful regional expansion and multi-year revenue potential. --- # 3. Capacity & Utilization ## A. Key Figures * **Crane Additions:** **22** India · **9** Saudi Arabia * **Crane Deployment:** **>30 of 54** planned cranes operational in Saudi Arabia ## B. Crane Additions * **Strategic Capacity Expansion:** Added significant crane capacity in India and Saudi Arabia, reinforcing commitment to high-growth markets. * **Active Fleet Optimization:** Ongoing disposal of obsolete cranes continues, supporting fleet modernization and capital efficiency. ## C. Utilization Rates * **Resilient Utilization Trends:** Despite sequential dip due to monsoon season, utilization shows **year-on-year improvement** across H1 and Q2, signaling underlying demand strength. * **Saudi Arabia Outperformance:** Achieved **full utilization** with over half the planned cranes already deployed and revenue-generating, highlighting successful market execution. --- # 4. Geographic Expansion ## A. Key Figures * **Cranes Deployed in Saudi Arabia:** **Over 30** moved to project sites * **Saudi Crane Rental Market Size:** **$800M–$1B** annually * Announced Projects in Saudi Arabia: $2 billion in construction * **Inquiry Pipeline (Saudi):** **$45–50M** * **PIF & Aramco Investment Outlook:** **$500B** Aramco spend (5-year plan) ## B. India Operations * **Expansion Strategy:** Company has shortlisted a new business expansion opportunity following strategic review. ## C. Saudi Arabia Launch * **Market Entry Achieved:** Commercial operations launched in September 2023; globalization track activated February 2025, marking strategic internationalization milestone. * **High-Growth Market Opportunity:** Saudi Arabia offers robust demand from giga-projects and major global events, positioning it as a key construction hub with **strong double-digit growth potential**. * **Yield vs. Margin Trade-off:** Business delivers higher yields than India but faces elevated operating costs due to Saudization and governance norms, resulting in **slightly lower or comparable EBITDA margins**. * **Execution Efficiency:** All committed capex assets successfully moved directly from port to site, reflecting strong operational readiness and deployment capability. * **Financial Impact Timing:** First billing occurred in Q2 FY'26; revenue and receivables not yet reflected in results, with order book disclosure starting Q3 FY'26. ## D. MENA Growth Plan * **Strategic Ambition:** Sanghvi Movers Middle East targets top three market position in Saudi Arabia within five years, leveraging India-honed technical expertise and scalable operating model. --- # 5. Segment & Business Mix ## A. Key Figures * Revenue Mix: 68% crane rental · 26.7% EPC business · 5.2% project EPC firm * Crane Yield: **~2.08%** (stable YoY) * **Renewable EPC Target Margin:** **10–12%** (expected stabilization range) * **Cement Capacity:** **500 Mn tons** (Mar-25) → projected **700 Mn tons** by Mar-26 * Steel Capacity Expansion: +35 Mn tons (total crude steel capacity reaching 235 Mn tons) * **Nuclear Projects:** **~8,000 MW** in active development by NPCIL ## B. Crane Rental * **Core Revenue Driver:** Crane rental remains the dominant segment, with stable yields maintained despite capacity expansion and elevated capex. * **Margin Pressure in KSA:** Despite higher operating yields, crane rental margins in Saudi Arabia are constrained by **higher operating expenses**, resulting in margins on par or slightly below India. * **Sector Diversification:** Strong positioning across high-growth end markets, with particularly robust performance in renewables and infrastructure. ## C. Renewable EPC * **Strategic Reorganization:** Renewable EPC business has been spun into a dedicated subsidiary, **Sangreen Future Private Renewables**, enabling focused leadership and P&L accountability. * **Premium Margin Profile:** Despite expected moderation to a 10–12% EBITDA margin at scale, the business maintains a **structural advantage** over peers due to full lifecycle customer engagement. * **Market Positioning:** Recognized as a **preferred partner** by major IPPs, underpinned by technical expertise and end-to-end project execution. ## D. Project EPC * **Cement & Steel Tailwinds:** Major capacity expansions in cement and steel sectors—led by UltraTech, Shree, and Dalmia—provide strong near-term demand visibility for EPC services. * **Nuclear Momentum:** Emerging nuclear power pipeline of nearly **8,000 MW** represents a new growth vector, with NPCIL advancing multiple projects nationwide. --- # 6. Risks & Execution Challenges ## A. Key Figures * **Order Execution Variance:** **~10%** potential impact from monsoon and land issues ## B. Monsoon Delays * **Seasonal Headwinds:** Lower Q2 utilization driven by typical monsoon seasonality, not weakening demand, with **Q3 performance expected to stabilize year-on-year**. * **Resilient Pipeline:** Despite near-term execution risks, company maintains **robust order pipeline** supporting forward visibility. ## C. Competitive Pressure * **Yield Constraints:** Even with improved utilization, **competitive intensity** is likely to cap pricing power and margin expansion. --- # 7. Guidance & Outlook ## A. Key Figures * **H1 FY'26 Capex:** **₹140 Cr** total (India: ₹123 Cr, KSA: ₹17 Cr) * **Approved FY'26 Capex:** **₹629 Cr** (India: ₹405 Cr, KSA: ₹224 Cr) * **Renewable Installations:** **9 GW** in H1 FY'26, with **3 GW expected** in H2 ## B. FY26 Revenue Targets * **Clear Revenue Roadmap:** Management maintains FY26 revenue growth guidance of **25–30%**, driven by strong momentum in Wind EPC and Project EPC, each expected to more than double. * **No Margin Guidance:** Company refrains from providing blended EBITDA or EBIT margin targets for FY26, citing strategic discretion. * **Analytical Workaround:** Investors can estimate blended EBITDA using revenue guidance and **segment-level EBITDA profiles** from historical data. ## C. Capex Deployment * **Strategic Expansion Underway:** Capex execution aligned with **Elevate 2030** strategy, focusing on global footprint (MENA), portfolio diversification, and digital scalability. * **Capex Timing & Impact:** Majority of approved capex to be deployed in **Q3 and Q4**, with financial impact—including depreciation—expected to materialize in **FY27**. * **Supply Chain Resilience:** Equipment imports from **Germany and China** on schedule; **no tariff exposure** anticipated due to timing and sourcing strategy. ## D. H2 Performance View * **H2 Execution Confidence:** Despite record order visibility and improved utilization outlook, company stands by original guidance, expecting **78–80% utilization in Q3 and Q4**. * **Renewables Tailwind:** India’s renewable sector on track for record installations, supporting strong demand for EPC and rental services in H2.