Sanghvi Movers FY26 outlook: 25-30% guide holds

Why Sanghvi Movers is back in focus

Sanghvi Movers Ltd, India’s largest crane rental company, is increasingly being tracked as a listed proxy for India’s infrastructure cycle and the Middle East capex build-out. The company’s heavy-lift fleet is used across power, steel, cement, refineries, metros and wind energy projects. With execution improving in the second half of the year and a lower base in some segments, investors have been asking whether management will raise its FY26 revenue growth guidance. The company’s answer is a clear no, even as it reiterates confidence in delivering the earlier targets.

FY26 guidance: management keeps targets unchanged

Despite strong H2 execution commentary and expectations of demand picking up in Q3 and Q4, management said it is not revising its FY26 revenue guidance higher. The reiterated FY26 targets include 25% to 30% overall topline growth, with crane rental growth of 10% to 15%. For Wind EPC, management indicated revenue growth of more than 2x, and Project EPC growth of around 2x. The company also maintained that blended crane yield is expected to be around 2.08%, broadly similar, while utilization is targeted to increase to 78% to 80% in Q3 and Q4.

Demand drivers: infra, industrial projects and wind

Sanghvi’s fleet supports a wide range of industrial and infrastructure projects, but wind energy has been a major growth driver. The company has highlighted that the wind sector contributed around 50% of revenue in FY24. Under India’s National Electricity Plan, wind capacity is expected to reach 122 GW by FY32 from 46 GW in FY24, implying an aggressive annual installation trajectory. Industry installation numbers cited in the material show wind additions rising from 1.1 GW to 2.3 GW to 3.3 GW over FY22, FY23 and FY24.

Shift toward EPC: faster growth, structurally lower margins

Sanghvi is diversifying into EPC for wind farm installation and other industrial projects as a natural extension of crane hiring. Management has described EPC as less capital intensive with potential to support ROCE, but margins are expected to settle below the core crane rental business. In an NDTV Profit interview, Managing Director Rishi Sanghvi said Wind EPC revenue is expected to double in FY26 with an EBITDA margin of 10% to 12%, while Project EPC is expected to double with an EBITDA of 8% to 10%.

The company also pointed out that it does not provide forward guidance for blended EBITDA margins as a policy based on Board advice. However, it did share directional commentary that a Q2 standalone (SSRPL) margin that was temporarily high at 18% to 20% is expected to normalize to 10% to 12% as scale increases.

Saudi opportunity: large pipeline, but higher operating friction

Sanghvi has been highlighting Saudi Arabia as a major growth market for heavy-lift cranes. The company cited a construction pipeline of about USD 2 trillion and a crane market opportunity of roughly USD 800 million to USD 1 billion, supported by PIF giga-projects, Aramco’s capex plan of USD 500 billion, and preparations linked to major global events. It also disclosed an inquiry pipeline of USD 45 million to USD 50 million, described as fully convertible over 24 months, giving revenue visibility into FY26 and FY27.

Management also flagged that while yields in Saudi can be higher than India due to strong demand, operating costs are also higher due to regulatory, manpower and compliance requirements. The net effect, as described, is that EBITDA margins are similar to India or slightly lower. On receivables, it noted that commercial billing in Saudi began only in September (Q2 FY26), so receivables from this market were not yet reflected.

Capex and commissioning: near-term costs, later revenue benefit

Capacity addition remains a key part of the growth plan, but management expects the revenue benefit of new capex to arrive with a lag. It said new capex commissioning will see deliveries in Q3 and Q4, but meaningful revenue impact will start from the next financial year. The disclosures also contain multiple capex datapoints across periods: FY24 capex of ₹334 crore, and a separate mention of FY25 capex of ₹235 crore. A Q1 reference also cites capex of ₹144 crore, including ₹94 crore for 21 new cranes.

Financial snapshot: FY24 record profit, FY25 margin shift

The company reported FY24 topline of ₹647 crore, up 33% year-on-year, and PAT of ₹188 crore, up 68% year-on-year. It also stated average capacity utilisation of 84% in FY24, with blended yield of 2.2% per month versus 1.97% in FY23. FY24 capex was stated at ₹334 crore, with 34 cranes and 44 other equipment added, and 32 cranes sold for a profit of ₹15.63 crore.

In FY25, the company reported total income of ₹782 crore, up 27% year-on-year, with an EBITDA margin of 45%. Segmentally, crane business revenue was ₹515 crore, down 13% from FY24, while Wind EPC revenue rose to ₹229 crore from ₹20 crore in FY24, and Project EPC revenue increased to ₹38 crore from ₹5.5 crore. FY25 net profit was ₹157 crore, down from ₹188 crore in FY24, reflecting the mix shift toward lower-margin EPC and other pressures.

Recent quarter performance: strong demand, mixed reported figures

The provided material includes multiple Q1 FY26 performance references. One set of highlights cites Q1 FY26 revenue of ₹163 crore (up 28% year-on-year), EBITDA of ₹89 crore with a 54% margin, and PAT of ₹41 crore (up 32% year-on-year). Another section states “total income from operations” of ₹273 crore versus ₹151 crore in the comparable quarter. A separate disclosure states consolidated net profit of ₹40.5 crore in the first quarter, down 3.1%, with revenue up 3.1% at ₹151 crore and EBITDA down 15.66% to ₹74.3 crore.

What is consistent across the commentary is that utilisation is improving into the second half. Management has indicated utilisation can move upwards of 80% in H2, and separately guided 78% to 80% utilisation in Q3 and Q4.

Key numbers table

Market impact: why margins are the swing factor

The central market debate is not demand, but profitability while the business mix changes. Core crane rentals have historically delivered high margins, and the FY25 commentary cites crane business EBITDA margin at 57%. But the faster-growing Wind EPC and Project EPC businesses are expected to run at lower EBITDA margins in the 8% to 12% range, according to management’s stated targets. That mix shift can dilute blended margins even when total income rises.

International expansion adds another layer. Saudi yields may be higher, but management has explicitly said costs are also higher, leaving margins similar to India or slightly lower. This means the growth story hinges on execution discipline, utilisation and working-capital management rather than yield expansion alone.

What to watch next

Near-term monitoring points are utilisation and yield in Q3 and Q4, when management expects demand to pick up across sectors. Investors will also track commissioning timelines, because management has said meaningful revenue impact from deliveries in Q3 and Q4 will start from the next financial year. On the EPC side, the key variable is whether scale brings margins back to the 10% to 12% band that management has described as sustainable for renewables EPC.

Conclusion

Sanghvi Movers is positioning for growth across three engines: crane rentals, Wind EPC and Project EPC, with an added runway from Saudi expansion. Even with strong H2 execution commentary, management is keeping FY26 revenue guidance unchanged at 25% to 30% topline growth, while signalling stable yield and higher utilisation into Q3 and Q4. The next set of quarterly updates will be important for clarity on segment mix, capex commissioning progress and whether EPC margins normalize toward the long-term 10% to 12% range mentioned by the company.