Sanghvi Movers stock falls 5.52% despite a 33.05% operating margin
Management reported a Rs 1,253 crore order book and said Rs 92 crore of the planned Rs 652 crore FY27 capex has been deployed.
Filed 31 Jul 2026, 13:45 IST · Sanghvi Movers Ltd (SANGHVIMOV)
Key takeaways
- Consolidated operating profit of Rs 125.47 crore translated into Rs 65.25 crore of net profit after Rs 38.59 crore depreciation, Rs 12.68 crore interest and Rs 22.39 crore tax.
- The 33.05% operating margin was 12.48 percentage points above the 20.57% median for 13 reported Services-sector peers.
- The stock fell 5.52% on 5.92 times normal volume, with a 5.79% relative decline against the benchmark.
Price around the results
Depreciation and interest cut operating profit sharply
The consolidated operating profit of Rs 125.47 crore was reduced by Rs 38.59 crore of depreciation and Rs 12.68 crore of interest before tax. Other income of Rs 13.44 crore also contributed to pre-tax earnings, so reported profit was not derived from operations alone.
Operating margin stayed well above the Services peer median
Sanghvi Movers' 33.05% operating margin was 12.48 percentage points above the 20.57% median among 13 Services-sector peers that had reported. The available quarter does not include a sequential or year-on-year comparison, so the direction of margin movement cannot be assessed here.
Qatar orders and international execution support the expansion narrative
Management said the company secured new Qatar orders and progressed execution in Botswana during Q1 FY27, while reporting a Rs 1,253 crore order book at quarter-end. The company said it had deployed Rs 92 crore of its planned Rs 652 crore FY27 capex across India and Saudi Arabia, with Rs 560 crore pending for the remaining nine months. Management projected FY27 total income of Rs 1,400-1,500 crore and EBITDA of Rs 525-575 crore.
The market reaction was sharply negative
The stock declined 5.52% on the results date, despite opening 0.24% higher, and its benchmark-relative return was -5.79%. Trading volume was 5.92 times normal, indicating unusually heavy activity around the filing.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹380 cr |
| Other income | ₹13 cr |
| Expenses | ₹254 cr |
| Operating profit | ₹125 cr |
| Operating margin (%) | 33.05% |
| Interest | ₹13 cr |
| Depreciation | ₹39 cr |
| Profit before tax | ₹88 cr |
| Tax | ₹22 cr |
| Net profit | ₹65 cr |
| EPS (₹) | ₹7.54 |
Operating margin of 33.05% compares with a Services sector median of 20.57% across 13 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.52% | -5.79% |
Volume on the results session was 5.92× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- In Q1 FY27, the company secured Qatar orders and progressed execution activities in Botswana.
Guidance & outlook
- FY27 total income is projected at ₹1,400–1,500 crore, with FY28 targeted at ₹1,800–1,900 crore.
- FY27 EBITDA is projected at ₹525–575 crore, with FY28 targeted at ₹650–700 crore.
- The company projects a FY27 debt-to-equity ceiling of 0.72x and a FY28 ceiling of 0.76–0.80x.
- The company expects further improvement in SMMEL EBITDA as fleet utilisation ramps.
Expansion
- The company deployed ₹92 crore of its planned ₹652 crore FY27 capex across India and Saudi Arabia.
- The company has ₹560 crore of FY27 capex pending for the remaining nine months.
- The international expansion roadmap includes depot expansion to expand reach.
New orders
- The company secured new orders in Qatar during Q1 FY27.
- The company reported a ₹1,253 crore order book at the end of Q1 FY27.
New initiatives
- The company operationalised its Middle East business during FY26.
- The company is adding spider cranes as an incremental product segment.
- The renewables roadmap includes a concept-to-commissioning offering.
Problems & risks
- Coal plant utilisation is expected to dilute, with coal PLF seen at about 61% by FY32.
What to watch
- Whether operating margin remains above 33.05%.
- Progress against the Rs 560 crore of FY27 capex still pending.
- The next disclosed order book against Rs 1,253 crore at the end of Q1 FY27.