Sanghvi Movers standalone profit dips 1.5% despite 27% revenue rise
Sanghvi Movers reported a 1.5% drop in standalone Q1FY27 net profit to ₹41.2 crore due to higher operating expenses, despite a 27% revenue increase. Conversely, consolidated profit grew 30% to ₹65.3 crore, fueled by Wind E&C and international segments, with the order book expanding to ₹1,253 crore.
*this image is generated using AI for illustrative purposes only.
Sanghvi Movers Limited reported a slight 1.5% year-on-year decline in standalone net profit to ₹41.2 crore for the quarter ended June 30, 2026 (Q1FY27), even as revenue from operations surged 27% to ₹203 crore. The divergence between top-line and bottom-line performance was driven by higher operating expenses and depreciation costs, offsetting the robust growth in the crane hiring segment. While consolidated profits rose 30% to ₹65.3 crore, the standalone entity faced margin pressure, highlighting the varying profitability dynamics across its domestic and international operations.
Standalone Financial Performance
The standalone results show a clear contrast between revenue momentum and profit realization. Revenue from operations increased to ₹20,297.46 lakh from ₹15,934.54 lakh in Q1FY26. However, total expenses rose sharply to ₹16,342.58 lakh from ₹11,388.87 lakh, primarily due to a 66% jump in operating and other expenses to ₹10,028.16 lakh. Depreciation and amortization also increased to ₹3,566.22 lakh from ₹3,135.25 lakh. Consequently, profit after tax (PAT) fell to ₹4,118.20 lakh from ₹4,180.63 lakh. Earnings per share (EPS) declined marginally to ₹4.76 from ₹4.83.
| Metric | Q1FY27 (₹ Cr) | Q1FY26 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 203.0 | 159.3 | +27% |
| Total Expenses | 163.4 | 113.9 | +43% |
| PAT | 41.2 | 41.8 | -1.5% |
| EPS (Basic) | ₹4.76 | ₹4.83 | -1.5% |
Segment-wise Breakdown
The crane hiring and ancillary services segment remained the primary revenue driver, contributing ₹19,205.52 lakh to total standalone revenue, up from ₹15,184.03 lakh in Q1FY26. This segment generated a result of ₹5,823.27 lakh, slightly higher than the ₹5,763.38 lakh recorded last year. The Project EPC segment saw significant growth, with revenue rising to ₹1,091.94 lakh from ₹750.51 lakh, and its result improving to ₹176.03 lakh from ₹99.84 lakh. Other income included a profit of ₹4.26 crore on the sale of property, plant, and equipment.
Consolidated vs Standalone Dynamics
While the standalone entity experienced margin compression, the consolidated group delivered stronger returns. Consolidated revenue rose 39% to ₹3,796.7 crore, and PAT increased 30% to ₹65.3 crore. The Wind E&C segment within the consolidated group contributed significantly, with revenue reaching ₹1,402.9 crore and results at ₹256.4 crore. Managing Director Rishi Sanghvi noted that international operations in Saudi Arabia and Botswana are gaining traction, contributing to the overall consolidated momentum. The order book expanded by 19% to ₹1,253 crore as of July 24, 2026, providing visibility for future quarters.
What the Numbers Show
The disparity between standalone and consolidated performance underscores the strategic importance of international and renewable energy ventures. While domestic standalone operations face rising cost pressures—evidenced by the 66% spike in operating expenses—the consolidated group benefits from high-margin Wind E&C projects and efficient international crane rentals. The standalone profit dip suggests that domestic crane rental margins may be under pressure from increased competition or higher input costs, whereas the diversified consolidated portfolio is successfully absorbing these shocks through growth in other segments.
Auditor Review and Compliance
MSKA & Associates LLP, the statutory auditors, conducted a limited review of the unaudited financial results and issued an unqualified conclusion for both standalone and consolidated statements. The review was performed in accordance with Standard on Review Engagements (SRE) 2410. The financial statements were prepared in compliance with Ind AS 34 and relevant SEBI regulations. The Board of Directors approved the results on July 31, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for Sanghvi Movers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.72% | +1.83% | +23.63% | +85.85% | +59.03% | +455.88% |
How does management plan to address the 66% surge in standalone operating expenses to restore margin stability in the domestic crane hiring segment?
What is the expected contribution of the newly expanded order book of ₹1,253 crore to revenue visibility in Q2 and Q3 FY27?
Will the company accelerate its international expansion in Saudi Arabia and Botswana to further leverage the high-margin performance seen in consolidated results?
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