Revenue fell 27.05% sequentially as margin narrowed
Costs fell less than revenue, while other income supplied 35.55% of pre-tax profit; the consolidated results were filed after market close.
Filed 02 Nov 2026, 18:22 IST · after market close · Sanghvi Movers Ltd (SANGHVIMOV)
Key takeaways
- Sequential revenue fell 27.05% as expenses declined only 25.18%, narrowing operating margin by 1.72 percentage points to 31.33%.
- Other income contributed 35.55% of pre-tax profit, while the tax-rate change was only 0.15 percentage points, making the Rs 40.34 cr net profit less purely operational.
- Sanghvi Movers’ 31.33% operating margin was 17.81 percentage points above the Services-sector median across 32 reporting peers.
Price around the results
Revenue contraction outpaced by the profit decline
On a consolidated basis, revenue declined 27.05% sequentially, while operating profit fell 30.84%, showing that the lower revenue base also reduced operating leverage. Net profit dropped 38.18% to Rs 40.34 cr as interest expense rose 16.40% and profit before tax fell 38.30%. The comparison is with Q1FY27 because no year-ago comparison is provided.
Lower utilisation pressured the operating margin
Expenses contracted 25.18%, less than the 27.05% fall in revenue, so operating margin narrowed by 1.72 percentage points to 31.33%. Other income rose 43.01% sequentially and accounted for 35.55% of pre-tax profit, making reported earnings quality an important consideration this quarter. The tax rate eased only 0.15 percentage points, so the net-profit decline was not primarily a tax effect.
Management linked expansion timing to shipping disruption
Management’s presentation projected FY27 total income at Rs 1,400-1,500 cr and EBITDA at Rs 525-575 cr, with higher ranges of Rs 1,800-1,900 cr and Rs 650-700 cr respectively for FY28. The company said Rs 80 cr of SMMEL KSA capex was shifted from FY27 to FY28 because of shipping disruptions and port congestion, while its international plan includes depot expansion in KSA. Management also said one project EPC contract recorded a loss, with related revenue still under discussion with the client.
Sector margin comparison is favourable; market reaction follows later
The 31.33% operating margin was 17.81 percentage points above the Services-sector median among 32 peers that had reported the quarter. The filing was made after market close on 2 November 2026, so the immediate stock response is not part of this results read.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹277 cr | ₹380 cr | -27.05% |
| Other income | ₹19 cr | ₹13 cr | +43.01% |
| Expenses | ₹190 cr | ₹254 cr | -25.18% |
| Operating profit | ₹87 cr | ₹125 cr | -30.84% |
| Operating margin (%) | 31.33% | 33.05% | — |
| Interest | ₹15 cr | ₹13 cr | +16.40% |
| Depreciation | ₹37 cr | ₹39 cr | -3.68% |
| Profit before tax | ₹54 cr | ₹88 cr | -38.30% |
| Tax | ₹14 cr | ₹22 cr | -38.68% |
| Net profit | ₹40 cr | ₹65 cr | -38.18% |
| EPS (₹) | ₹4.66 | ₹7.54 | -38.20% |
Operating margin of 31.33% compares with a Services sector median of 13.52% across 32 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- FY27 total income is projected at ₹1,400–1,500 crore, rising to ₹1,800–1,900 crore in FY28.
- FY27 EBITDA is projected at ₹525–575 crore, rising to ₹650–700 crore in FY28.
Planned next quarter
- Contract labour, insurance and other operating costs are expected to ease in Q3 and Q4 as higher revenue absorbs costs.
Expansion
- ₹80 crore of SMMEL KSA capex was shifted from FY27 to FY28 because of shipping disruptions and port congestion.
- The international expansion plan includes depot expansion to increase reach in KSA.
New initiatives
- The renewables business is pursuing a concept-to-commissioning offering.
Problems & risks
- Geopolitical and shipping disruptions in the Middle East delayed planned capex deployment.
- One project EPC contract recorded a loss, with related revenue pending client confirmation.
What to watch
- Whether operating margin holds above 31.33% as revenue conditions change.
- Whether other income remains close to or below its 35.55% share of pre-tax profit.
- Progress against management’s FY27 total-income projection of Rs 1,400-1,500 cr and the planned Rs 80 cr KSA capex shift.