Sanghvi Movers Limited (SANGHVIMOV) Q4 2026 Earnings Call Transcript

Good afternoon, and a warm welcome, everyone, to Q4 and FY26 earnings call of Sankwe Movers Limited. Please note, the investor presentation and the financial results are available on the company website and the stock exchanges. Also, anything said on this call which reflects our outlook for the future, or which could be construed as a forward-looking statement, must be revamped in conjunction with the risk that the company faces. The conference call is being recorded, and the transcript, along with the audio of the scene, will be made available on the website of the company, as well as on the exchanges. Please also note that the audio of the conference call is the copyright material of Sangry Movers Ltd., and cannot be copied, rebroadcasted, or attributed in the press or media without specific and written consent of the company. From the management, we have with us Mr. Rishi Sanghi, Managing Director, Mr. Gaurang Desai, Chief Executive Officer, Mr. Pradeep Mehta, Chief Financial Officer. Now, I request Mr. Pradeep Mehta, Chief Financial Officer of Sanghi Movers Limited, to provide you with the update for the quarter and year ended, 31st March, 2026. Thank you, and over to you, sir.

Thank you, Ms. Ikhra. And good afternoon, everyone. We appreciate your participation in today's call. I will begin with a summary of our financial performance for the quarter and full year ended 31st March 2026. For Q4 FY26, the company reported income from operation of Rs 351 crore as compared to Rs 236 crore in Q3 FY26 and Rs 267 crore in Q4 FY25. This is reflecting a year-on-year growth of 31.4%. For the full year FY26, revenue from operations today is 1,070 crod, raising a growth of 36.9% over Rs.782 crod reported in FY25. This performance was supported by our ongoing focus on strengthening our service portfolio in line with evolving global demand. In terms of segment contribution for FY26, the current rental business contributed 65% of operating revenue and the renewal segment accounted for 31% and the project EPC contributed remaining 4%. EBITDA for Q4 FY26 stood at 143 crores compared to 113 crores in Q4 FY25. It is representing a growth of 25.7% on year-on-year basis, with an EBITDA margin of 40.6%. For FY26, EBITDA was 429 crores, as against 371 crores in FY25. It is reflecting a growth of 15.6% and a margin of 40.1%. Profit after tax for Q4 FY26 was 69 crores. Compared with 37 crores, which will be 4 accessible items in Q3 FY26, and 54 crores in Q4 FY25. This is indicating year-on-year increase of 27.8%. For the full year FY26, PAT stood at 184 crores versus 157 crores in FY25. So marking a growth of 17.7%. Primarily driven by 35% growth in credit rental revenue in India and partially offset by higher fixed overhead incurred toward expansion of the KSA and renewal business along with the impact of labor code implementations. I am pleased to inform you that KSA business has started generating positive monthly EBITDA recently and we are expected to Achieve positive ITD EBITDA by end of this first half of this current financial year. On operational front, average capacity utilization during the quarter was 87% and overall 79% for FY26. While average blended yields were at 2.24% per month for the quarter cool and average for the year 2.12% per month for the year. Our balance sheet remains strong. As of 31st March 2026, net debt stood at 612 crore, with a net debt to equity ratio of 0.47 acre. Reflecting a comfortable leverage position, the average cost of borrowing remained stable at 8.12% per annum, with net worth stood at 1310 crore.

Good morning, everyone, and welcome to the call. The company incurred total capital expenditure of 474 crores.

This includes 373 crores in India and 101 crores in our KSA sub-city. As previously approved by the board, the total plan is capex for FY26 over 613 L crores and the balance capex is being carried forward to spend in the current financial year. Our order book pipeline remains robust with 1,053 code in hand as on 14th May of FI27, giving us a greater visibility. With this, I would now hand over to Mr. Goran Desai, our CEO. Thank you, Pradeep, and good afternoon, everybody, and a warm welcome to all of you joining us on the call. My name is Goran Desai, and I serve as the CEO of your company. You know, it's always a pleasure to connect with our investor community. Pradeep has already given you glimpses of our business, but for the sake of reputation, you know, FY26 has been by any measure a strong year for Sangry Mobiles. Revenue from operations reached 1070 crore, and there is a growth of 36.9% over last year. While we are equally proud of... The top line is also how we got here. Asset utilization improved to 79% up from 74% in last financial year. That improvement reflects stronger fleet deployment, better planning, and our teams executing with greater discipline on the ground. You know, when your assets are working harder and smarter, I mean, that is operational health, and that is what creates durable long-term value. Now, let me turn to what gives us confidence going forward. So, as of May, our consolidated order book stands at 1053 crores, giving our team's clarity on deployment and our investor clarity on what to expect. What is further exciting is our inquiry pipeline, which has expanded to almost 4000 crores. You know, this is a live pipeline deflecting real customer demand, real project activity, and real market confidence in what your company brings to the table. Let me give you a little bit of perspective on the industry. So, in terms of sectors, let me start talking about wind energy. India added a record 6.1 gigawatt of wind capacity in F526 alone. And that's a massive 46% jump over the previous year. Total capacity stands at 56 gigawatts. And we are on the clear trajectory to 100 gigawatts by 2030. And in fact, the government has already raised the long-term target to 156 gigawatts by 2036. So for your company, wind energy is one of the most active and growing segment. Every turbine that goes up requires heavy lift. Every wind path that gets commissioned, we are likely to be part of that story. Thermal. Thermal is projected to grow from 223 gigawatts to 300 gigawatts by 2030. And critically, the role of thermal is also evolving. The plants are being retrofitted and upgraded to work alongside renewables to flex up and down as a great demand. This segment continues to be a strong contributor for us. Nuclear power. This is one sector where we all should be excited about. The government has launched a full energy mission, 20,000 crores, committed to small, modular research, and five indigenous leaders targeted by 2033. And, you know, we are also seeing moments in terms of private sector participation where, you know, amendments are being discussed. You know, names like Reliance, Tata, Adani, Vidandra has already expressed interest. So long-term target is 100 gigawatt of nuclear capacity by 2047, and at a CAGR of 26%, it's one of the faster-growing energy subsector in India today. Refinery. India is already Asia's largest refiner, and we are expanding it further. The government has confirmed a capacity addition of almost 310 million megatons per annum by 2030. A new $11 billion greenfield refinery underway in Andhra Pradesh, and our honorable PM's vision goes further. 450 million tons by 2047, making India a top three global refining hub. Pement, same as India's infrastructure fuel and the demand is running ahead of expectations. Install capacity is already at 668 million tons per annum ahead of the original schedule. The 2030 target has been revised upwards to almost 850 million tons per annum. You know, there are top 17 companies alone are committing almost 1.2 lakh crore in capital expenditure over the next three years.

Steel.

India is now the world's second largest steel producer. Capacity today is around 220 million tons per annum, targeting to almost 300 million tons by 2030, backed by a 100 billion investment pipeline. New demand streams are opening up nuclear plants, renewable energy infrastructure, data structure, smart cities, all driving appetite for specialty steel and large new facilities. I would also give you a quick walkthrough of long-term strategy growth driven by expansion in KSA. So KSA's infrastructure sector is witnessing a strong momentum with a grain rental market estimated at around 1 billion, supported by a massive 2 trillion investment pipeline. We have built a strong revenue visibility with a pipeline of around 50 million over next 24 months. Thank you. Around 5 million in confirmed orders and additional 13 to 18 million in high probability conversions. Our strategy is well aligned with Vision 2030, leveraging our expertise in the wind sector, certified operator, robust safety standard. You know, so bring it all together. Your company sits at the intersection of every major infrastructure theme laying out in India today. Energy transition, industrial expansion, government complex. Each of these theme requires heavy lifting, and literally we are willing to deliver this. F526 is a strong year. Our order book is healthy, our pipeline is strong, and our teams are executing with a level of confidence and competence that makes us genuinely proud. We remain deeply committing to create value for each one of you on this call, and we look forward to updating you on a continuous progress in the quarters ahead. Thank you very much.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question? If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Krupa Desai from Electrum Capital. Please go ahead.

Hi, sir. Congratulations on good set of numbers. Sir, I have two, three questions. My first question was, in the presentation, you have mentioned that we have a 612 crores of net debt versus if I see the gross debt is 673 crores and we have a treasury of 353 crores. So, shouldn't the net debt be like around 300, 320 odd crores? Is that number correct? That's, that's my first question.

Thank you, Kripa. Thank you very much for asking the questions and clarifications. And see, this number is a consolidated number, and we are showing on cross-block basis. And when in the accounting we are presenting, it is being. Take care of India, and that's why the number shows like this, but you cannot net off those liabilities. We are netting off with those FD which are linked to these liabilities. So that way we are showing a proper gross liability. Okay. It will be giving you a better idea instead of netting off the entire currency reducing from the debt.

And so, where do we see the debt profile going for the next year?

So, you have seen that in the last five years, we are able to manage below 0.5%, but we are doing more capex in recent years, and we have planned to do it, so definitely it will go up, but we will maintain it at certain levels, and it is definitely going to a little up, considering the capex we have done.

Okay, and so what is your growth guidance for the next year?

So on guidance side, we would like to

maintain the growth we have done in the current year. We would like to continue the same growth level. We can't quote the exact number, but our target is to achieve the same type of growth in the current year and next year.

So, do you believe that we will be able to do this 30% crane rentals growth? Going ahead?

Yes, yes. That's what we are second target. So, now we, let's see the criteria coming in.

Yeah. So, what's your view on this Middle East situation right now? Have any projects stopped there? Or any slowdown we are seeing there?

Yeah, hi, Krupa. My name is Rishi Sanghi.

In the current situation with West Asia, we are still able to derive a utilization in the range of 85-90% and a yield which is upwards of 4.5%. We have an inquiry pipeline of nearly $50 million in the next 24 months. And we are still committed to deploy the... Spillover capex of 120 crores from last year, and an incremental capex of almost 200 crores for the purchase of brand new cranes. So this year, we are forecasting to spend approximately 320 crores in the Middle East, and specifically for the Saudi Arabia and Qatar. Now, all the capex that we are bringing online is moving directly from port to site. So, given the current situation in West Asia, we are still doubling down on our initial hypothesis to expand into the Middle East. And notwithstanding what is happening right now, we are able to maintain exceptional numbers in terms of utilization and yield.

Okay, got it, sir. That is all. Thank you for taking my questions.

Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. We will take our next question from the line of Nishant J. Sharma from Noama Wealth. Please go ahead.

Thank you for the opportunity, and congratulations for the great set of numbers. So, my first question related to the previous participants with respect to KSA, while what is our vote over there to win the business, I believe there would be other competition which will be already playing around there, and how we would be able to gain market share from them. So, first is around that.

Second question.

My second question is around what is the split for order book for three businesses, and what is the revenue contribution from three businesses for a full year?

So, in terms of India business, Secondly, we are sitting on an order book of

1035 Gros, or 55 Gros. We don't give you a revenue split by businesses. We are only giving a consolidated revenue order book at the start of the year. Now, with respect to your first question, what is our right to win? You see, Sangvi Movers Limited is the fifth largest crane rental company in the world. We are the largest crane rental company in India and the largest in Asia. And what we have is 36 years of experience. And what we bring to the table is three and a half decades of operational, safety, and technical know-how. Now, when we entered the Middle East market, our reputation succeeded us. We were able to penetrate the market and in a very short span, we were able to move into all sectors such as oil and gas, infrastructure, energy, and such. So, one is that our history, track record, brand reputation, our operating capabilities on the technical side for owning, operating, and maintaining the crane. We have transferred significant amount of capabilities and best practices to the Middle East. And above and beyond that, operating in India gives us the advantage of operating on an exceptionally lean core structure. So, these things have enabled us to consistently deliver a value to our customers in the Middle East. And in the peak of the current situation in West Asia, we have opened up a new market in Qatar, thereby demonstrating the region's demand for trains and that to from a supplier such as Sunwee Mobile Limited. In addition to what I have just mentioned, there is a severe shortage of cranes in the region. If the entire population of cranes in the region was to double overnight, there would still be a shortage of cranes in the market. So we are well positioned both from a demand side as well as from a supply side with respect to our value differentiated offerings. And therefore, we believe that we have a significant right to win in the market, which is clearly being demonstrated by the fact that we will be both EBITDA and cash flow positive in the coming few months. We are on a cumulative basis. We are already there on a month-to-month basis. We will be there on a cumulative basis in the coming few months. Therefore, the business setup in both Saudi and Qatar will have a positive contribution not only to the top line, but the bottom line as well. Thanks.

Thank you very much.

Just a call. Sorry, there are only two questions for participants. So, Igra, back to you, please.

Okay, sir, I'll call back in queue. Thank you.

Thank you. Next question is from the line of Sunil Jain from Nirmal Bank Securities. Please go ahead.

Yeah, thanks for taking my question, sir. Two questions. One is the diesel prices are increasing. So, are you able to pass it on, or you have to absorb that in your, and how much is that cost relevant, means how much percentage of revenue it is there?

And what's your next question?

Yeah. Next question is, this WinDPC growth which you are getting, in the next year, will it be in line with the company growth, or it can be higher than the company growth?

So, yes, there has been fluctuation in the diesel price, and we are already in discussion with our client for a price increase.

50% of our contracts have diesel as a supply and a customer.

Okay, so you can pass it, I mean, it's a variable cost which has been passed it on to the customer for at least 50% of the contract.

So, 50% of our clients give us free supply of fuel, and for the bearish 50%, we are already in advanced stage of discussion with the client for a price increase. Second question, sir.

This was related to WinDPC.

Yeah. So, you know, we have taken the

revenue for WinDPC for our sangrene, which is, it's not EPC's engineering and construction to be very clear. We don't do any procurement. It is free supply of turbine from the client. Our revenue from FY2425 to 2526 is almost doubled. We believe that in the coming years, there is a sizable opportunity in this segment, and we will pick and choose those orders that we believe will help us maintain a minimum threshold in terms of profitability, as well as coupled with our ability to execute and deliver. So the opportunity size, to be frank with you, is far ahead of our current scale of organization to deliver. And therefore, we are becoming extremely picky and choosy in terms of which contracts we will take on in order to maintain a healthy margin profile on the business. I think overall the company at a consolidated basis on the top line will grow in the range of what we did last year. This is what we are targeting. Only the coming quarters can show whether we are successful or not.

Okay. Okay, I've got more questions, but I'll fall in the queue and come back again.

Thank you. Next question is from the line of Ishan from JM Financial. Please go ahead.

Sir, I just want to ask about the margins. So, as the margins are falling continuously, so what is the margin guidance for the next year?

Margin guidance for next year.

So, first, sorry, what's your name, please? Dishant, sir. Dishant, sir. So, I, first off, you know, the question has a premise that the margin is falling consistently. While you may be right that the blended EBITDA margin is falling, you have to understand that the revenue profile of the company is shifting from our core creative rental business. We are building a second engine of growth in the renewables for engineering and construction. Now, there are two things that we need to understand. The core business has still grown at a 30% and has contributed significantly to both the EBITDA and the bottom and the VAT and all the other financial relations. The incremental growth beyond 30% in terms of the top line, which has allowed the company to cross a historical revenue of 1,100 crores, is coming from the new business engine, which was carved out in 2024 as a wholly owned subsidiary in Stringling Future Relevers Private Limited. And this company has doubled in revenue and has zero, is not a capex heavy business, it is an asset light business. So, while our core remains an asset-heavy business, the engineering and construction business under Sign Green is an asset-like business. And therefore, the margin profile is inherently different. It is a high-roceal, low-ebitda business. The roceal on this business is, today, we have closed the roceal at almost 75%.

Okay.

Good morning, everyone, and welcome to the call. In the core business, we have invested in FY2526 approved capex of 630 crores. This year, we are doing 390 crores for a total of almost 1,030 crores. The entirety of this capex is going towards our Korean rental business, which is our core business. Which continues to sustain a positive growth of 30% here. And we are positive that going forward, we will see another 30% growth in our crane ratio. Okay. You have to look at the absolute EBITDA that the company is able to deliver and not at the margin profile because the second engine that we have created within the group, which is the engineering and construction business, is a low EBITDA, high ROC profile.

So this is what you should look at. Got it, sir. So, like, the view one consolidated a bit longer. And, Ishaan, this is your second question. Please go ahead. Yeah, so, sir, basically, it is the first question.

Ishaan, may I request you to please reach out to me for more questions?

Yeah, no problem.

Next question is from the line of Jay Bharat Trivedi from Inquired AMC. Please go ahead.

Hello, am I audible?

Yes, your answer.

Yes. Congratulations on good luck of numbers. My two questions are, both of them are relating to the APEX which we have done. First is that our last year gross block was 2,680 crores, on which we have done a CAPEX of around 407 crores. So 407, I am taking from the cash flow, the amount. So, which gives me a total gross block of 3,100 odd crores. If I put the 79% capacity utilization and 2.12 yield, my revenue is coming at 620 crores, whereas we have reported a revenue of 693 crores in the green business. Can you help me understand this bridge?

So, if I understand what you are saying that, you know,

if you total up the total capex, it comes to 3,100 crores, and if you take the average capacity isolation and yield, you are reaching a particular number. Can you just repeat that, please?

620 crores. So, 3,100 crores. I am putting a 79% utilization. Which is being then multiplied by 2.12, which is the year, multiplied by 12. Is my calculation right?

I don't know. It's your calculation.

No, but that is how the revenue is calculated. That is what I'm asking.

What is your question? Can you replay this because you're not audible?

So I'm just asking the capacity utilization number 79% and the yield of 2.12% per month, which is given in the presentation. If I apply those two metrics to the revenue number of 693 crores, which is the crane rental revenue, my gross block is not coming as per the cash flow payment and the last year gross block which you have given. If you want, we can take this offline. I don't mind.

Yeah, you can send your query on email, and then we'll respond to you, because your calculation is... No worries.

No worries. Please send that. Sure, sure. So, take my questions offline. Thank you so much.

Thank you. Next question is from the line of Heyman Shah from Seven Island PMO. Please go ahead.

Hi, thank you for the opportunity and congratulations for the great set of numbers. I have two questions. One is with respect to the deferred CAPEX of around 165 crore, which was deferred from FY26 to 27. If you can just say, till May, have we deployed anything? And what is the timeline of the 391 crore of the CAPEX, which is going to be spent in the current FY27, the execution timeline, if you can say. And secondly, second question would be, was there any execution delay, Rishi, for Q4? Why I'm asking you this is because Q3 unexecuted order book was around 525 crore. And I think we did 350 crore of sales in Q4. I think we could have done even more if there is any delay. If there is no delay, then it's also fine. I mean, if you can just clarify. Thank you.

So your first question on the CapEx side, your calculation is all right. So those cranes for India, two cranes were remaining in the last March ending and which is Supply to us in the first fortnight of our friends, so we already completed our India CapEx. In KSA, there were certain cranes due to certain delivery, delay from the OEM side, those cranes now are planned in this financial year, and those capex of 123 crore with 27 cranes, we are going to do it in this financial year. Adding on to this, we have announced our board has approved another capex of 190 crore in India and around 200 crore in KSA. Today, it's a total of almost 61 cranes. We are going to buy... As per the business requirement and the supplies, those we have arranged, depending on the business requirement, we have staggered throughout the year. So it will, you understand, during monsoon period, some supplies we are delivering as per the order, aligning with the order. So it will be across the year on the CAPEX Act.

Okay. And with respect to the, any execution delay in Q4?

I think the Q4 revenue year-on-year has improved on quarter-on-quarter, so I don't understand where the question on execution delay is coming from.

Okay. No, no. My bad. I mean, there won't be, I'm sure. There is a great execution, no doubt about it, but I was expecting we could have executed over 400 crore of order book. I mean, is that understanding correct? I'm not sure. Thank you for your question. Thank you. Thank you.

Thank you. Next question is from the line of Ashish, Soni, an individual investor. Please go ahead.

Sir, you spoke about 4000 crore pipeline. So, how much do you think it can get converted for you into order in next 3 to 6 months?

So, it will be a difficult question because, you know, there is a lot of amount of predictability. What we are saying that we are starting the year is a strong order book of almost 1,050 crores. And we hope to aim towards good conversion, but again, a lot of things depends on external environment.

Okay, and second question is regarding the EBITDA margin. So, I think Vishis have said in one of the interviews that by Q1 or Q2, FY27, you'll break even in Saudi. And is there an internal blended EBITDA margin you guys target on an annual basis? These are the EBITDA margin questions. Again, EBITDA margin for good business verticals. More on blended, blended, I'm asking, and EBITDA margin for Saudi business, it was supposed to break even by Q1 or Q2 in FY27. So, is it on track or is there any impact?

So, as far as the business in the Middle East is concerned, in Shangri Movers Middle East Limited, we're extremely proud to say that on a month-to-month basis, we are both EBITDA and cash flow positive. Our cumulative EBITDA and cumulative flash flow positivity will be achieved in the coming few months and we are on track to achieve it. Regarding the EBITDA profile, we run two significantly, two to three significantly diverse business units by D&D. One is a capital intensive, asset heavy, high EBITDA margin business, which is our core train rental business. And we set in with an asset like Working capital heavy, high ROC business. And so, therefore, to target a blended EBITDA margin is a wrong business strategy. Each of these business units has its own P&L. We house each of the businesses in different entities in order to drive fundamental differences in how these businesses operate and maximize profitability, revenue, and return to shareholders. And therefore, We do not target a blended EBITDA margin.

We drive BU level P&H. Okay. Thank you. All the best.

Thank you. Next question is from the line of Raj Vyas from Bonanza Portfolio. Please go ahead.

Yeah, thanks for the opportunity.

And so my question is with respect to, you said that the utilization of Middle East is around 80-90%. So we are not facing any kind of issue with respect to demand or what is the dependent scenario.

I wanted to understand this.

So, notwithstanding the situation in West Asia, we have, in the month of March 2026, we had reported almost a utilization of 90% for that particular month. And we are still generating a yield upwards of 4.5%. Looking forward, we have an inquiry pipeline for the next 24 months to the tune of $50 million. And the company is still committed to deploy the spillover capex of 120 crores along with 201 crores, which has been approved by the board of directors in its meeting on 20th May, 2026. So for the entire financial year, your company will deploy somewhere around 290, sorry, 201 and 120 crores of capex in brand new claims. And based on our inquiry pipeline, the ongoing projects, we believe that we will continue to maintain this level of utilization and yield. Now, one of the challenges that we have is in the supply chain disruption, which is bringing the cranes from the country of origin to both Saudi Arabia and Qatar. If the shipping lines to the region continue to be closed, Then there may be a postponement of capex. Notwithstanding a postponement of capex, we are still on track to hit our cumulative EBITDA and cumulative cash flow positivity in the coming few months. So, given this entire backdrop, Your company still believes in its initial hypothesis of international expansion to this region and sees a long-term player for the next few decades.

Okay, I understood. My next question is with respect to the order book, current order book you have mentioned. So it is around roughly 1060 crores, right, on our consolidated basis. So how much of this will be executable in FY27 itself and how much will be passed on to FY28 and if you can also provide the inquiry order pipeline as well.

Sure. So, Raj, the order book which you mentioned is completely executable in the current financial year. And what was the next question?

No, inquiry order pipeline.

Correct. So, it's around 4,000 crores.

Okay, understood. Thank you. Thank you, Raj.

Thank you. Next question is from the line of Prashant Pali from Star Capital. Please go ahead.

Thank you for the opportunity, sir. My question is regarding these 123 crore of cranes which we have ordered. What is the status of those cranes? Are they in transit or are they rerouted to Jeddah Port? And when will they be delivered to KSA?

So the default capex of 120 crores, some of it is already available in the country, and some of it is pending for shipment. The balanced capex has already been ordered to the OEMs are in various stages of production, and nothing is on route. There is some surplus inventory of the OEMs in the country which we are looking to take in the event that we are not able to get fresh inventory from the country of origin to... to both Saudi Arabia and Qatar. So really, while we are committed to deploying this capital and we have taken approval from the board of directors and this decision has been supported by our inquiry pipeline and our demand from our customers and our visibility on the market, until the clarity and the disruption in the supply chains as far as shipping lines and shipping congestion and shipping challenges are resolved, The situation will remain fluid. This is on the supply side. However, on the demand side, as we have repeatedly updated on this call, we see a clear line of visibility to $50 million of inquiry pipeline, which is executable in the next 24 months.

Okay, sir, but isn't it possible to remove the cranes to the Jeddah port for delivery?

Jeddah is also facing severe congestion, and also there is a severe hike in shipping costs due to congestion. Okay, okay.

Thank you, sir. Thank you very much.

It is possible, but it is costly and uncertain. Yes, that's it. Thank you, sir.

Thank you. Next question is from the line of Abhinath from Equitas. Please go ahead.

Thanks for the opportunity. My first question was regarding the order book. Could you please let us know how much is short term and how much is long term with percentage break up? And second question was regarding employee cost. So I can see employee cost has risen around 103% year on year in FY26. Any specific reason for the same?

Now, thanks for the question. So, the order book of 1053 is fully executable this year. Okay. Regarding your second question on the increase in the fixed cost, yes, I mean, our ENC business has grown, you know, almost twice was what year ago. So, there is addition of fixed cost and that's the reason why you're seeing the increase.

So we have also been aggressively hiring leadership talent, both in India and in Saudi Arabia, because we have a stated vision, Elevate 2030, which is our five-year strategic roadmap, which talks about building up the capabilities of the organization. While the employee costs have come up, and some of it is attributable to the E&C business under Sangreen Future Renewables, which is mad power and employee cost heavy, there is also significant investment in the team, and I'm really proud to have Goran Desai as a CEO and Mr. Pradeep Mehta as a CFO, along with the entirety of the Guardian CXO team. If you look at our investor presentation, you can see the entirety of our CFO team presented in that presentation. That in itself, along with the fact that we want to be an employer of choice, we want to reward our employees, reflects in the nature of expense in employer.

Okay. My other question was regarding the diesel cost which you mentioned. You were mentioning that you were in, you know, discussion with the clients for 50% pass on. So, how is the nature of contract and how is the fuel cost passed on? Is it passed on along with the crane?

So, you know, again to reiterate, 50% of our clients are HSTS free issue. And in other 50%, we are in advance

discussion with the client for a price increase.

Thank you. Next question is from the line of Mohit from Shabla Research. Please go ahead.

Hi, greetings.

Thank you for the opportunity.

My question pertains to particularly wind EPT. If I look at the quarterly run rate in this segment of the business, it seems that the execution is not picking up, despite having talks of incremental wind energy installation in the country. So, I just wanted to get your opinion on what is causing this, you know, slumber in this segment. What's the idea we are getting from our wind plants as far as the turbine installation is concerned?

Sir, can you repeat your question because it's not clear?

I'm sorry, sir. Sir, is it clear now?

You are audible, but your question is not clear.

I, yeah, I am just trying to understand the slower pickup in wind BPC segment revenue. We are seeing that on an year-on-year basis, wind turbine installation in India is picking up, but our revenue from the segment probably is flattish, you know, 106 crore last quarter, last year, and this quarter 116 crore. So, this growth quantum seems a little low to me. So, I'm just trying to understand what's the reason behind it. Why is it that wind turbines are not getting installed from us?

So, first of all, the country erected 6 gigawatts last year. Of those 6 gigawatts, your company has directly delivered 2 gigawatts. Okay, so we have a historical track record of 17 plus gigawatts of WTG installation, and in the last year itself, we have delivered 2 gigawatts. Just because the country's capacity addition is increasing, doesn't mean there is a direct correlation to our ENC business in sanguine future renewables, because one, The demand size that we are seeing is far greater than our ability to scale the business and deliver projects at an acceptable EBITDA margin. The second is there is a timing delay of revenue recognition in EPC projects because a lot of the time revenue is linked to POCM methodology of accounting. This is percentage of completion methodology of accounting. And therefore, it's not a linear correlation between the country's capacity addition and the sanctuary future renewables' ability to recognize them. So, one, it is, we have delivered 2,000 MW as a company for the country. The second is, we are choosing which contracts to execute. We don't want to go to the traditional route of an EPC or ENC company and struggle with execution. And most of the large and well-established players in the past have faced these challenges. And the third is that there is a timing mismatch of revenue on POC.

Having said that, Mohit, we as a company have demonstrated substantial growth as compared to last year. To double our revenue in this segment.

Yes, certainly, sir. So I was just looking at on a quarterly basis, year-on-year comparison. But I get your point. Probably this PCOM, etc. is causing some revenue sitting idle in the probably balance sheet. Sir, my second question is, you know, we have been simultaneously, we have been hearing about some delays in VINs installation because of right-of-way issues. And, you know, connectivity issues, et cetera, et cetera. So, for FY27, what is your opinion on our performance? Should we see material growth here 30-40%? I'm just asking, sir.

So, as we have already indicated, the group will deliver or expects to deliver and is internally targeting a 30% growth on its overall consolidated revenue.

So, we should take the same number for wind segment also, sir?

Consolidated revenue at 30%.

Okay, okay. I get that, sir. Those are my two questions. Thank you and good luck.

Thank you.

Thank you. Next question is from the line of Ajay Rajesh Chala from Mihir A. Shaheen Company. Please go ahead.

Hi, so if

I heard you right, you mentioned a yield of 4.5%. I'm assuming this is for KSA and Middle East. India is currently at 2.24% for the quarter. So if you could help me understand what the cost structure difference is as compared to India and the Middle East. Yeah, that would be question one.

So, the operating costs in Saudi Arabia and Qatar are, of course, significantly higher in terms of manpower costs, logistics costs, etc. Repairs and maintenance, and things like that. So, the EBITDA profile of that business, when we benchmarked it, is around 40-45%. But we believe because of our three and a half years of decade, our technical operating and efficiency factors that we can deliver in the country and our capability to operate at a linear cost structure, we can push that EBITDA profile to 45 to 48%.

And my second question is, if I look at over the years, if I look at the years that Sangree Movers has had in India, so right now, so what is your view on the years? Like, what do you think really affects it? Is it construction? Is it a supply of cranes? Is it like cranes getting older and Sangree Movers having, you know? Some kind of mode, like what really drives that yield over the years, if you could give us a broad view.

Ajay Raj, so, you know, our yield in the last financial year has been around 2.1%. And, you know, we foresee maintaining the same with plus minus 5% deviation.

That's very helpful. Thank you. Thank you.

Thank you. Next question is from the line of Nishan Cheshwarma from Nuwama Wealth TCT Research. Please go ahead.

Thank you for the opportunity again. Nishan, we cannot hear you.

Nishan, we cannot hear you.

Sorry, am I audible now, sir?

Yes.

Sorry to stretch a bit on KSA. How are the yield comparisons with the competitors at KSA and who are our customers over there? Is it the Indian contractors over there or those are mainly local customers from that side? And the second question would be on working capital requirement and return ratios in the engineering and construction business.

So I'll answer the question on KSA.

We believe that we are at the upper pricing spectrum as far as yield is concerned, and largely we are able to derive this pricing because of our track record brand recognition and the fact that we are supplying brand new equipment in the country. So, that is on the yield profile in comparison to competitors. As far as our customers are concerned, we do not, as of today, have a single Indian client who is working in Saudi. We have multiple customers who are regional or country-specific contractors, shutdown, EPC contractors, so on and so forth. So that is the question on KSA. What was your question on the E&C business? Can you please repeat yourself?

Nishant, can you please repeat your question? Yes, sir. Yes, sir. Nishant, can you hear us?

Yeah, sorry. What is the working capital requirement and what are the return ratios that we target in engineering and construction business?

So, working capital days is around ranging 50 to 60 days in this business, for ranging and commissioning, and what about ratios? Ratios on ROSI is improving like we explained earlier in this call already. These are very high ratio on ROSI side. As compared to other business, because this is a less capital-intensive business, it's more on a satellite model. So, ratio on O.C. is very, very high in this business.

Sure, sir. Thank you very much and all the very best. Thank you. Thank you.

Thank you. Ladies and gentlemen, we will take that as a last question for today. I would now like to hand the conference back to the management for closing comments.

So, thank you for joining this call. It has been, you know, a wonderful discussion with all of you, and, you know, we hope to remain transparent as we go along and engage into much more meaningful conversations. So, thank you, everybody.

Thank you very much. On behalf of Sunfi Movers Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your line.