2GW already done, with rains almost behind us, heading for a fantastic year… should bode well for sanghvi. LT bullish bias ahead.
Sanghvi Movers; Saudi Arabia operation as per Q2/2026 con call
Operations in the Kingdom of Saudi Arabia officially began in Q2 FY26.
Market Size: The annual crane rental market in KSA is estimated to be approximately $800 million to $1 billion per year.
Saudi Arabia is going to spend upwards of $500 billion in the next 5 years so Saudi Arabia is an expanding and booming market and in Saudi Arabia there are $2 trillion worth of construction project.
The boom is fueled by major construction projects, including giga-projects, and preparations to host the FIFA World Cup, the Winter Games, and the World Expo.
The company reported 100% capacity utilization in Saudi Arabia as of the time of the earnings call.
Management said that every single asset has moved directly from the port to the site.
The company has deployed more than 30 cranes on site in KSA, and they are all deployed at the customer job site earning revenue.
First Billing: The first meaningful operation or the first billing occurred in September 2025 (within Q2 FY26). Prior to this, in the first quarter (Q1 FY26), the KSA subsidiary did not have revenue, although it did incur fixed costs, primarily employee salary costs for hiring the Saudi team.
EBITDA Margin: Due to the higher operating costs, the resulting EBITDA margin in KSA is currently on par or slightly below the EBITDA margin achieved by the crane rental business in India.
Over the long run, their operational experience and technological capabilities will allow them to improve the EBITDA in Saudi Arabia and bring it on par with the India business.
The company has committed roughly ₹225 crore to procure approximately 55 cranes.
10 Likes
Just started to look at the company. I feel that the stock price is in a value territory.
PE - 15
Forward revenue growth rate: 25 to 30%
Margins likely maintained, though EPC biz will have a bit lower margins.
EPS growth of about 20%, giving PEG < 1
QoQ slowdown is seasonal. Q3FY26 will see a jump as seen in previous years.
The planned capex might have an impact on the EPS if the utilization doesn’t pick up. However, based on the mgmt commentary, this should not be much of a problem.
No promoter pledges or share sale.
No fraud or corporate governance issues that I can see.
No negative audit remarks.
Next generation management in place, US returned and at helm now.
In recent meltdown, the market is giving good discounts on valuations (also similar discount available for EPC companies with clear growth rate like Transrail Lighting). Looks like a nice opportunity here.
Disc: Might slowly accumulate.
9 Likes
Stock coming down as margins are going down.
this is high capex business and go down sharply - it was in losses few years back when Wind power had declined. (wind power is a major business segment).
While Saudi business could be doing well India business is risky.
2 Likes
Management guidance of almost combined capex of 1000 crore(sort of close to 370 crore or may be more in FY27 with final board approval in Feb,2026) for FY26 and FY27,New Cranes moving from port to Site directly
Strong demand from various sectors
Saudi to breakeven in H1 FY27 as operations started in Nov,25 and major Crane deliveries in Feb,2026
Wind Epc margins are premium at around 15% , Cash conversion will improve from 120 to 100 days
Disc : Invested
2 Likes