Sanghvi Movers Q1 FY27 Results (NSE: SANGHVIMOV)
Signal: Growth reaccelerated
The read
Q1FY27 saw the first YoY EBITDA margin expansion (+60bps) after seven consecutive quarters of contraction, but the improvement is modest and driven entirely by crane hiring's scale. Employee and finance cost surges (+75% and +73% YoY respectively) absorbed most of the revenue gain, leaving PAT growth (29.8%) well behind revenue growth (38.9%). The wind E&C segment is scaling but carries lower margins, diluting group profitability. Standalone business flat PAT confirms that group profit growth is dependent on the wind segment's continued scaling. No balance-sheet or capex details were filed; the full picture awaits the half-yearly.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹379.67 Cr | 38.9% | 8.0% |
| EBIT | ₹100.33 Cr | 32.8% | |
| Net profit | ₹65.25 Cr | 29.8% | |
| EPS | ₹7.54 | 30.0% | |
| EBIT margin | 36.6% |
P&L walk
Revenue growth of 38.9% YoY was broad-based, but employee cost (+75.7% YoY) and finance cost (+73.4% YoY) grew much faster, limiting EBITDA margin expansion to just +60bps. PAT lagged revenue growth by 9ppt due to the cost drag.
Segments
Revenue growth was broad-based: crane hiring (+43.1% YoY) and wind E&C (+32.1% YoY) both drove strong top-line expansion. Wind E&C contributed 37% of consolidated revenue and 24% of segment PBIT, adding meaningful diversification. The higher employee and operating costs were concentrated in this segment, pulling down consolidated margins. Standalone (crane hiring + project EPC) shows flatter profit.
Key positives
- Consolidated revenue growth of 38.9% YoY, driven by crane hiring (+43.1%) and wind E&C (+32.1%).
- All three segments reported YoY revenue growth; crane hiring and wind E&C both posted strong double-digit gains.
- Consolidated EBITDA margin expanded YoY for the first time in two years (+60bps to 36.6%).
- EPS grew 30.0% YoY to ₹7.54, with no dilution.
Key concerns
- Employee cost growth (+75.7% YoY) far outpaced revenue, absorbing operating leverage.
- Finance cost surged +73.4% YoY, reflecting higher debt levels and interest rates.
- Consolidated PAT growth (29.8%) lagged revenue growth by 9ppt due to cost pressures.
- Standalone PAT was flat YoY (-1.5%), indicating that group profit growth depends on lower-margin wind E&C segment.
- Other income in standalone was 28.1% of PBT (flagged), suggesting profit quality is reliant on asset sales.
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