Q1 2027 Sanghvi Movers Ltd Earnings Call Transcript
Key Points
- Sanghvi Movers Ltd (BOM:530073) reported a strong 39% year-on-year growth in revenue from operations, reaching INR380 crore in Q1 FY27, driven by broad-based demand across sectors.
- The company's order book stands at a robust INR1,250 crore, fully executable within FY27, providing strong revenue visibility and confidence in sustained business momentum.
- The Middle East business achieved a significant milestone by turning cumulatively EBITDA positive in its first year of operation, with a high yield of 4.10% in the GCC region.
- The company maintains a healthy balance sheet with a gross debt-to-equity ratio of 0.54 times, well below its guided ceiling of 0.72 times, and a substantial treasury surplus of over INR300 crore.
- Sanghvi Movers Ltd (BOM:530073) is executing a disciplined capital allocation strategy, with a INR652 crore capex plan for FY27 expected to drive a 15% increase in revenue, while the asset-light renewables business continues to scale rapidly.
- Core crane rental EBITDA margin declined by 6 percentage points to 47% in Q1 FY27, impacted by higher expected credit loss provisions, forex mark-to-market losses, and one-time employee incentives.
- Group days sales outstanding (DSO) remains elevated at 116 days, with the GCC business particularly high at 201 days, reflecting collection challenges and regional disruptions.
- The company's EBITDA margin sequentially declined from 40% in Q4 FY26 to 35% in Q1 FY27, indicating margin pressure despite top-line growth.
- The Middle East operations face higher operational costs, resulting in a lower EBITDA margin of 23% compared to India, although yields are higher.
- The company anticipates potential project execution delays in its E&C business due to client-side issues like site readiness and OEM supply, which could impact revenue recognition and margins.
Ladies and Gentlemen, Good afternoon and a warm welcome everyone to Q1 FY27 earnings call of Sunway Movers Limited.
(Operators Instructions)
From the management side, we have with us Mr. Rishi Sanghvi, Managing Director; Mr. Gaurang Desai, Chief Executive Officer; and Mr. Pradeep Mehta, Chief Financial Officer. Now I request Mr. Pradeep Mehta, the Chief Financial Officer of Sanghvi Movers Limited, to provide you with the updates for the quarter ended on 30th June 2026. Thank you. And over to you, sir.
Thank you, Huda, and good afternoon. Thank you all for joining us.
I will take you through quarter in four parts. One, the headline number. Two, the sequential comparisons. Three, the core crane rental margin, which I expect is on everyoneâs mind, and which Iâll explain i n this discussion. And then the last is balance sheet and capex. On headline numbers, on consolidated basis, revenue from operations for Q1 FY â27 was INR380 crore against INR273 crore in Q1 FY â26. That
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