Sanghvi Movers disclosed multiple compliance lapses for the financial year ended March 31, 2026, in its Annual Secretarial Compliance Report submitted to the stock exchanges. The report, issued by secretarial auditor M/s. Kanj & Co. LLP, identified deviations concerning regulatory filings, documentation of board approvals, and adherence to governance protocols. These lapses highlight gaps in the company's internal compliance mechanisms during the review period.

The audit revealed that the Annual Secretarial Compliance Report for the financial year 2024-25 was filed with a delay. Specifically, the report was submitted to the National Stock Exchange of India Limited (NSE) 1 hour and 11 minutes late, and to BSE Limited 1 hour and 6 minutes late. Additionally, the Quarterly Compliance Report on Corporate Governance for the quarters ended September 2025 and December 2025 was signed by the Managing Director rather than the mandated Compliance Officer or Chief Executive Officer.

Further procedural deviations were noted regarding the certification of financial results. The minutes of Board Meetings, except for the meeting held on May 20, 2025, did not specifically record the confirmation by the Chief Executive Officer and Chief Financial Officer that the financial results contained no false statements. The compliance certificate for the quarter ended March 31, 2025, was also issued by the CFO and Managing Director instead of the CEO as required under Regulation 17(8).

The report also pointed out deficiencies in the documentation of related party transactions and director evaluations. While transactions with subsidiaries were noted in the minutes, the records lacked specific references to 'approval' or 'prior approval' from the Audit Committee and the Board. Furthermore, the performance evaluation of Independent Directors was discussed but not specifically recorded in the minutes of the Nomination and Remuneration Committee and the Board Meeting.

In response to these findings, the company's management attributed several issues to inadvertence and transitional periods, such as the change in Company Secretary. The company stated that the evaluation of Independent Directors was conducted but recording was missed, and that subjective approvals for related party transactions were obtained. The auditor noted that the company is in the process of reviewing and updating its internal policies to align with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Compliance Status Summary

Sanghvi Movers has announced its audited financial results for the quarter and year ended March 31, 2026. The company reported a consolidated net profit of ₹184 crore for the full fiscal year FY26, compared to ₹157 crore in the previous year, marking a 17.7% year-on-year increase. For the fourth quarter, net profit stood at ₹69 crore, up from ₹54 crore in the same period last year. Revenue from operations for Q4 FY26 reached ₹351 crore, a 31.4% increase from ₹267 crore in Q4 FY25. The Board of Directors approved the results in a meeting held on May 20, 2026. Following the announcement, the company held an earnings conference call on May 22, 2026, the audio recording of which is now available at the company's website.

Q4 & FY26 Financial Performance

The company's performance reflects growth across key financial metrics. The table below summarises the consolidated results for the quarter and full year:

For the full fiscal year, total income reached ₹1,100 crore, a growth of 33.6% on a year-on-year basis. The EBITDA margin for FY26 stood at 40.1%, while the PAT margin was recorded at 17.2%.

Strategic Updates

Sanghvi Movers highlighted a secured order book for FY27 of ₹1,053 crore as of May 14, 2026, demonstrating progress toward annual targets. The company successfully commissioned all cranes in Botswana on schedule, showcasing execution excellence. Additionally, it received multiple client safety excellence awards for outstanding HSE performance. Operational efficiency in India improved, reaching 79% utilization and a 2.12% yield in FY26.

Management Commentary

Commenting on the performance, Mr. Rishi Sanghvi, Managing Director, noted that FY26 was a year of resilient performance amid a challenging global landscape. He stated that the company delivered its highest ever total income and is advancing its long-term transformation under ELEVATE 2030. The focus remains on international expansion, specifically in Saudi Arabia and the broader MENA corridor, alongside cost optimization and prudent capital allocation.

Board Decisions

The Board of Directors recommended a final dividend of ₹2.00 per equity share of face value ₹1 each for the financial year ended March 31, 2026. This dividend is subject to the approval of shareholders at the ensuing Annual General Meeting. Additionally, the Board approved the re-appointment of MSKA & Associates LLP as Statutory Auditors for a second term of five consecutive years, effective from the conclusion of the 37th AGM until the conclusion of the 42nd AGM to be held in the Financial Year 2030-31.