Sanghvi Movers Q1 FY27: Revenue +39%, EBITDA 35%

Key takeaway from the June-quarter update

Sanghvi Movers Ltd (BOM: 530073) reported a strong start to FY27, with revenue from operations rising 39% year-on-year (YoY) to INR380 crore in Q1 FY27. Total income increased 40% YoY to INR393 crore, reflecting what the company described as broad-based demand across sectors. EBITDA rose 30% YoY to INR139 crore, with a consolidated EBITDA margin of 35%. Profit after tax (PAT) also grew 30% YoY to INR65 crore. The company discussed these numbers on its Q1 FY27 earnings call held on August 3, 2026, covering the quarter ended June 30, 2026.

Q1 FY27 financial performance: growth with margin moderation

On the call, management presented headline financials for the quarter. Revenue from operations of INR380 crore compared with INR273 crore in Q1 FY26, translating into 39% growth. Total income moved to INR393 crore from INR281 crore in the prior-year quarter. EBITDA came in at INR139 crore versus INR107 crore a year ago, with the margin reported at 35%. PAT rose to INR65 crore from INR50 crore in Q1 FY26. Cash profit increased to INR104 crore from INR82 crore in the year-ago quarter.

Stock and quarterly comparison points referenced alongside results

Alongside the YoY improvement, the broader coverage around the filing highlighted quarter-on-quarter movement and market reaction. Consolidated net profit was cited at INR65.25 crore for Q1 FY27, down 5.13% quarter-on-quarter (QoQ) from INR68.78 crore in Q4 FY26. Revenue from operations was cited at INR379.66 crore in Q1 FY27, up 8.03% QoQ from INR351.45 crore in Q4 FY26. On the day referenced, the stock fell 6.43% to INR406.05 after the QoQ decline in profit was noted. The same coverage also cited interest cost of INR12.68 crore in the quarter, up about 73% YoY.

What happened to margins in the core crane rental business

A key discussion point on the call was the core crane rental EBITDA margin. Management said this margin declined to 47% in Q1 FY27 from 53% in FY26. The company attributed the decline to higher expected credit loss (ECL) provisions of INR6.2 crore, a mark-to-market reinstatement of a foreign currency loan of INR1.4 crore, one-time employee incentives, and a change in revenue mix. It also shared an “underlying” core margin of approximately 49% for the quarter, excluding the forex and incentive items. Management added that it expects the margin to move back toward 51% as credit provisions rationalise.

Receivables and working capital: DSO remains elevated

The company provided Days Sales Outstanding (DSO) data for the group, indicating collections remained a focus area. Group DSO was reported at 116 days. Within that, crane rental DSO was 124 days, renewal E&C was 98 days, and the GCC business was 201 days. The margin commentary and the ECL provision disclosure linked the profitability discussion directly to receivables and credit provisions during the quarter.

FY27 guidance kept unchanged

Management maintained its FY27 outlook on the call. FY27 consolidated revenue guidance was reiterated at roughly INR1,400 crore to INR1,500 crore. FY27 EBITDA guidance was unchanged at INR525 crore to INR575 crore. The company also reiterated FY27 return on capital guidance, indicating a blended return of 16.25% to 16.5%. These targets were presented alongside the discussion of one-time items and the company’s expectation that certain margin pressures may normalise.

Operating context: demand drivers and fleet reference

Sanghvi Movers’ Q1 performance was described as being supported by broad-based demand across sectors. Separate coverage tied growth to heavy-lift hiring for wind turbine installation and core infrastructure work. Fleet size was cited as “346-plus” medium to large telescopic and crawler cranes. Another report referenced risks from elevated receivables and Middle East geopolitical instability as potential collection and supply-chain risks, even as demand stayed strong.

Summary table of reported metrics

Market impact: what investors likely focused on

From the disclosed figures, the market’s immediate attention appeared split between strong YoY growth and softer profitability trends versus the March quarter. The reported 35% EBITDA margin and the cited slip in operating margin (around 33% in some coverage) put the spotlight on costs and one-offs, including higher employee expenses and the ECL provision. Working capital metrics also mattered, with group DSO at 116 days and the GCC business DSO at 201 days. The stock move cited, a 6.43% fall to INR406.05, aligned with the focus on QoQ PAT decline, despite revenue growth.

Analysis: why the Q1 discussion matters for FY27 tracking

The Q1 update sets reference points for the rest of FY27 in three areas the company itself highlighted: revenue scale-up, margin normalisation, and receivables. On scale, revenue and total income growth were strong and management retained revenue guidance of INR1,400 crore to INR1,500 crore. On margins, the company separated reported core margins from “underlying” margins, pointing to specific items (ECL, forex mark-to-market, one-time incentives) rather than structural pricing commentary. And on cash conversion, elevated DSO and higher credit provisions suggest collections and customer risk profiling could remain central to quarterly outcomes.

Conclusion

Sanghvi Movers entered FY27 with strong YoY growth in revenue and profits, while acknowledging margin pressure in the core rental segment due to identifiable one-time and provisioning items. Management maintained FY27 revenue, EBITDA, and return-on-capital guidance. The next quarters will be watched for any movement in DSO, the pace of credit provision rationalisation, and whether the core margin trends back toward the levels management referenced on the call.