Sanghvi Movers Ltd Q2 FY26 – When India’s Largest Crane Company Lifted Its Earnings, Literally
1. At a Glance
Sanghvi Movers Ltd (SML), the kingpin of cranes in India, just proved that heavy lifting isn’t just physical — it’s financial too. With a market cap of ₹3,277 crore, stock price at ₹379, and a 3-month rally of 23%, this giant has hauled more profits than a PSU tender meeting. The Q2 FY26 revenue hit ₹210 crore, a 34% YoY surge, while PAT clocked ₹36.3 crore, up 25% YoY. The company’s operating profit margin stands tall at 38%, showing that cranes aren’t the only thing rising — margins are too.
Sanghvi Movers is now flexing not just steel but strategy: expansion in the Middle East, record order book of ₹1,250+ crore, and 84% capacity utilisation in FY24. This is the story of how a once dull heavy-equipment lessor became the literal backbone of India’s wind farms and refineries, all while the promoters earned themselves a friendly SEBI reminder about salary caps.
2. Introduction
Every bull run has that one company that quietly builds its empire while others argue on Twitter. Enter Sanghvi Movers, the unsung muscle behind India’s infrastructure, renewable energy, and industrial expansions. When you see a windmill rising out of barren land or a refinery chimney piercing the sky — chances are a Sanghvi crane was sweating nearby, probably with a chai-stained operator shouting “Thoda left, thoda right!”
Founded decades ago by Chandrakant Sanghvi, this Pune-based powerhouse has grown into Asia’s largest crane rental company, commanding an insane 40–45% share of India’s crane rental market and an almost dictatorial 60–65% share in high-end cranes above 400 MT. In other words, if cranes had elections, Sanghvi Movers would be the unopposed CM.
And yet, the story isn’t just about size. It’s about strategy — pivoting toward wind power EPC, international expansion (hello, Saudi Arabia), and even birthing a green energy baby: Sangreen Renewables Pvt Ltd. The company isn’t just renting cranes anymore — it’s building entire ecosystems for renewable infrastructure.
So, what’s the catch? Well, besides the VAT litigations, the promoter remuneration drama, and the flat yield guidance for FY25, nothing really. But let’s not get ahead of ourselves — the numbers are where this heavyweight truly flexes.
3. Business Model – WTF Do They Even Do?
Imagine you own 346 beasts of steel weighing thousands of tonnes, each capable of lifting an aircraft if you ask nicely. Sanghvi Movers doesn’t make cranes. It owns them, maintains them, and rents them out to India’s largest industrial players — from Adani Renewables to JSW Steel to BHEL.
The company’s fleet includes hydraulic truck-mounted telescopic cranes, lattice boom cranes, and crawler lattice cranes — all with lifting capacities between 20 MT to 1,000 MT. This means they can hoist anything from a broken transformer to your hopes of getting a PSU contract.
Here’s how it works:
The company deploys cranes on long-term or project-based rentals.
Clients pay for time and tonnage (the desi version of Netflix but for metal).
Sanghvi takes care of maintenance, logistics, and operators.
It earns recurring revenues while depreciating the assets smartly.
The segment split for FY24 says it all:
Wind Mill: 49%
Refinery & Gas: 10%
Cement: 8%
Power: 8%
Steel & Metals: 9%
Others: 12%
The wind sector is clearly the company’s sugar daddy. And with India pushing renewable energy like it’s a pre-election promise, this dependency might actually be a blessing disguised as diversification.
4. Financials Overview
(All Figures in ₹ Crore)
Metric
Latest Qtr (Q2 FY26)
YoY Qtr (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue
210
156
273
34.4%
-23.1%
EBITDA
81
73
100
10.9%
-19.0%
PAT
36.3
29
50
25.2%
-27.4%
EPS (₹)
4.19
3.36
5.81
24.7%
-27.9%
The quarter-on-quarter dip looks rough, but that’s typical in the crane world — project schedules are like Bollywood releases: unpredictable and delayed. The YoY growth, however, remains strong, with both sales and profits rising double digits. Annualised EPS of ₹16.8 gives a P/E of around 22.5, which is slightly below the industry average of 22.3 — fair, considering cranes depreciate faster than New Year resolutions.
Commentary: Sanghvi Movers’ financials are a masterclass in high operating leverage. Once your cranes are paid for, every new project just fattens margins. At 38% OPM, they’re basically the HUL of heavy metal.
5. Valuation Discussion – Fair Value Range (Educational Only)
Let’s apply the holy trinity: P/E, EV/EBITDA, and DCF.
P/E Method:
EPS (TTM): ₹20
Peer Average P/E: 22.3
Fair Value Range = ₹20 × (18 – 22) = ₹360 – ₹440
EV/EBITDA Method:
EV: ₹3,699 crore
EBITDA (TTM): ₹363 crore
EV/EBITDA = 10.2x
Sector average: 9–12x
Fair EV range = ₹3,267 – ₹4,356 crore
Subtract net debt (₹493 crore): ₹3,774 – ₹4,863 crore equity value → ₹435 – ₹560 per share
DCF (Simplified 5-year projection):
Free cash flow grows 10% CAGR
WACC: 11%
Terminal growth: 4%
Resulting fair value ≈ ₹400 – ₹470
Fair Value Range (Educational Only): ₹360 – ₹470 per share
Disclaimer: This fair value range is for educational purposes only and not investment
