Sanghvi Movers Q2 FY27 Results (NSE: SANGHVIMOV)
Signal: Margin pressure
The read
The key inflection is not revenue but margin: consolidated revenue grew 32.0% YoY, yet EBITDA margin fell 716bps to 31.3% as operating and other expenses grew 48.6%, while Project EPC slipped to a 334.54 lakh loss; the asset build remains active with H1 capex of 23,146.25 lakh and CWIP of 5,756.41 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹276.97 Cr | +32.0% | -27.1% |
| EBIT | ₹49.61 Cr | +0.2% | |
| Net profit | ₹40.34 Cr | +11.2% | |
| EPS | ₹4.66 | +11.2% | |
| EBIT margin | 31.3% |
P&L walk
Revenue grew 32.0% YoY to 27,696.79 lakh, but EBITDA margin contracted 716bps to 31.3% as operating and other expenses rose 48.6% YoY; PAT grew 11.2% to 4,033.85 lakh, helped by other income of 1,922.35 lakh.
Segments
Crane hiring drove the operating result with 14,342.77 lakh of revenue and 3,691.80 lakh of segment result, while Project EPC shrank to 441.49 lakh of revenue and moved to a 334.54 lakh loss; the consolidated result also materially exceeded standalone PAT at 4,033.85 lakh versus 2,229.78 lakh.
Key positives
- Consolidated revenue grew 32.0% YoY to 27,696.79 lakh despite a 27.1% sequential decline, maintaining double-digit growth.
- H1FY27 operating cash flow rose 96.4% YoY to 23,110.84 lakh, materially ahead of H1FY26.
- Consolidated PPE and CWIP increased to 1,48,135.65 lakh and 5,756.41 lakh respectively, supporting the stated capacity and revenue expansion trajectory.
- EPS of ₹4.66 grew 11.2% YoY and tracked PAT growth without dilution.
Key concerns
- EBITDA margin compressed 716bps YoY to 31.3%, continuing the margin contraction visible through the recent quarterly series.
- Operating and other expenses rose 48.6% YoY to 15,953.77 lakh, 16.6 percentage points faster than revenue.
- Project EPC revenue fell 60.0% YoY to 441.49 lakh and its segment result moved from a 1.00 lakh profit to a 334.54 lakh loss.
- Finance costs increased 99.8% YoY to 1,476.17 lakh, while consolidated borrowings rose to 76,899.86 lakh.
Research and educational content only. Not investment advice.