Sanghvi Movers Q1: consolidated PAT ₹65 Cr up 30% YoY on 39% revenue jump, but margins slip

Sanghvi Movers opened FY27 with strong topline momentum but softer profitability. Consolidated revenue from operations rose 38.9% YoY to ₹379.67 Cr (Q1 FY26: ₹273.36 Cr), while consolidated PAT grew 29.8% YoY to ₹65.25 Cr (₹50.26 Cr) — profit growth trailing revenue growth, the signature of margin compression. Net margin eased to 17.2% from 17.9% a year ago, and operating margin fell more sharply to ~33% from 36.4%. Sequentially the print was flatter: revenue +8.0% QoQ but PAT -5.1% (Q4 FY26 PAT was ₹68.79 Cr), with NPM down from 19.1% — a normal step-down from a seasonally strong March quarter rather than a deterioration.

The margin squeeze sits on operating costs and mix. Operating & other expenses jumped 43% YoY to ₹222.07 Cr and employee costs 76% to ₹32.12 Cr, both outpacing revenue, while the fast-growing Wind E&C business (external revenue ₹140.29 Cr, +32% YoY, ~37% of the top line) carries a thinner ~18% segment margin versus ~35% for core crane hiring, diluting the blended figure. Core crane hiring external revenue rose 43% YoY to ₹228.46 Cr — comfortably ahead of the 30% crane-rental growth management guided on the Q4 call — so the topline meets/beats prior guidance of holding FY26's ~37% growth; the shortfall is entirely on the margin line, not demand.

The stock went into the print at ₹440.4, down 3% over the past month of trading.

For context: revenue is at a 6-quarter high.

No exceptional items this quarter — consolidated EPS ₹7.54 (vs ₹5.80 YoY); tax ₹22.39 Cr

Against the Street, the standalone print (revenue ₹202.97 Cr, PAT ₹41.18 Cr) ran ahead on revenue versus the ~₹193 Cr expected but came in a touch light on the ~₹43 Cr PAT estimate — consistent with the margin story. There were no exceptional items this quarter (last year's ₹7.9 Cr consolidated exceptional was a Q4/FY26 event), so the YoY growth is clean and needs no adjustment. Management's earnings call is on Aug 3; the KSA/Middle East expansion — guided to turn EBITDA and cash-flow positive — remains the key swing factor, with overseas subsidiaries contributing only ~₹3.5 Cr net profit so far.