Sanghvi Movers Ltd Management Discussions

INDIAN ECONOMY

Indias economy continued to demonstrate strong momentum during 2025-26, strengthening its position among the fastest-growing major economies globally despite evolving geopolitical and macroeconomic uncertainties. Indias GDP reached approximately US$ 4.15 Tn1, with real GDP growth estimated at 7.6% in 2025-26, improving from 7.1% in the previous year. Growth was supported by sustained expansion across manufacturing, services, infrastructure development, and domestic consumption.

Manufacturing activity, in particular, remained a key growth driver, with the S&P Global Manufacturing PMI consistently staying above 50 across all quarters and moderating to 55.93 in April 2026,

indicating continued expansion at a more measured pace. Broader momentum across the secondary and tertiary sectors, which expanded by over 9.0%2, further reflected the resilience of Indias growth trajectory.

Supporting this momentum, the government continued to prioritise infrastructure-led development, with public capital expenditure in 2026-27 projected at Rs.12.2 Lakhs crore4 and fiscal expenditure in 2025-26 reaching US$ 506.5 Bn5. Reflecting balanced growth and inflation conditions, the Reserve Bank of India maintained a neutral monetary policy stance in February 2026, keeping the repo rate unchanged at 5.25%6.

Domestic demand continued to underpin economic growth, supported by private consumption and fixed investment. Rural demand remained resilient on the back of higher real wages, robust farm credit, and favourable rabi prospects, while urban consumption strengthened across discretionary categories such as automobiles and jewellery. Continued formalisation of the economy and supportive tax measures contributed to record GST collections of Rs.22.3 Lakhs crore7 during 2025-26. The services sector remained buoyant and, together with a resilient agricultural base and sustained industrial activity, supported real GVA growth, while the Index of Industrial Production reached 159.8s in February 2026.

Indias export performance remained resilient despite global trade uncertainties, with total exports rising 4.77% YoY to US$ 860.09 Bn9 in 2025-26. Investor confidence also remained strong, with gross foreign direct investment during April-November 2025 reaching US$ 64.7 Bn11. Inflationary trends remained relatively stable during the year, with consumer inflation increasing by 3.87%10 YoY, supporting macroeconomic stability and consumption.

However, external risks intensified amid rising geopolitical tensions and global commodity volatility. The ongoing conflict involving Iran, Israel, and the US exerted pressure through higher crude oil prices and potential disruptions across key shipping routes, particularly the Strait of Hormuz. With Brent crude prices remaining above US$ 10912 per barrel, these developments are expected to increase input costs and widen trade pressures, with every US$ 10 increase in crude prices estimated to add nearly US$ 15 Bn to Indias import bill.

Amid these developments, the Indian Rupee weakened to around Rs.94-9513 per US Dollar as of April 2026 due to strong dollar demand, oil importer activity, and hedging pressures. In response, the Reserve Bank of India undertook currency market interventions through dollar sales and open market operations to stabilise bond yields and contain financial market volatility.

(Sources:

5 h ttps: //p rs india.org/files/budget/budget_

parliament/2025/Union_Budget_Analysis_2025-26.pdf

business/rbi-mpc-meeting-february-2026-iive-updates-

rbi-governor-sanjay-malhotra-mpc-repo-rate-cut-

monetary-policy-committee/liveblog/127965184. cms

finance/indias-gst-collections-rise-8-2-to-rs-l-78-lakh-

crore-in-march/articleshow/129943463. cmsRs. from=mdr

release_1774865320639_b310863d-ad4a-47cb-b3c0-

7eb7b56a2a5b_Press_release_IIP_February_2026.pdf

860-09-billion-in-fy26-imports-grow-faster- widen ing-

trade-deficit/

11 https: //www. pib. gov. in/PressReleasePage. aspxRs.PRID=2219971&reg=3&iang=l

OUTLOOK

India remains among the worlds fastest-growing major economies, supported by strong recent momentum and a stable medium-term outlook. While

growth is expected to moderate as temporary factors fade, it remains resilient, providing a predictable backdrop for long-term infrastructure and industrial activity. This environment supports sustained planning and execution across construction-led sectors.

Industrial demand is being driven by continued technology-led investments, particularly in high-tech manufacturing and data centres requiring specialised construction infrastructure. Easing inflation is improving operating predictability, even as global risks persist from high sovereign debt, geopolitical tensions, and potential volatility in high- tech investment. Overall, the domestic environment remains supportive of equipment rental demand, underpinning Sanghvi Movers operating outlook amid ongoing global uncertainties.

(Source: IMF report on World Economic Outlook, January 2026)

INDUSTRY REVIEW Crane Rental Industry

The crane rental industry in India is projected to grow from US$ 2.86 Bn in 2025 to US$ 5.13 Bn by 2034, registering a CAGR of 6.7%, supported by sustained infrastructure investment and renewable energy expansion.

The market is emerging as a key enabler of infrastructure-led growth, offering cost-efficient, flexible lifting solutions across construction, transport, ports, mining, and industrial applications. As contractors increasingly favour asset-light models to optimise capital allocation and manage timelines, rental-based procurement is gaining structural traction.

Growth is driven by large-scale infrastructure modernisation, including metro rail expansions, highways, bridges, and smart city developments. As of May 2025, metro rail projects are operational or under construction in 23 cities, spanning 1,013 kilometres. Port-led development and logistics expansion are further strengthening demand, with Indias port infrastructure market projected to reach US$ 8.99 Bn by 2030 and longterm capacity targets rising. In 2024, the buildings and construction segment accounted for US$ 1.03 Bn in revenue, while mobile cranes contributed US$ 1.79 Bn, reflecting their versatility. The low- to medium-capacity segment is expected to grow at a CAGR of 7.2%, driven by urban construction and maintenance activity.

Construction Equipment Sector

The Indian construction equipment market is expected to grow from US$ 8.55 Bn in 2025 to US$ 9.24 Bn in 2026 and further to US$ 13.61 Bn by 2031, registering a CAGR of 8.05% over 2026-31. Anchored in the US$ 1.4 Tn National Infrastructure Pipeline, this expansion is driving sustained demand for earthmoving, roadbuilding, materialhandling, and lifting solutions across large, complex infrastructure projects. As project sizes increase and timelines compress, the focus is shifting towards higher-capacity equipment, improved uptime, and efficient fleet deployment, reinforcing the importance of scale and operational discipline.

Policy priorities are also reshaping demand patterns. Increased public spending in the North-East is altering regional equipment deployment, while mining-sector reforms are generating demand for high-horsepower, heavy-duty applications. At the same time, the growing presence of rental platforms is improving access for smaller contractors, enhancing asset utilisation and strengthening the role of organised fleet operators in supporting infrastructure-led growth.

(Source: https ://www. mordorintelligence. com/industry-

reports/india-construction-equipment-marketRs.utm_ so urce =prnews wire)

Construction Sector

The Indian construction market contributes close to 8% of GDP and was valued at US$ 1.04 Tn in 2024. It is estimated to reach US$ 1.21 Tn in 2025 and expand to US$ 2.13 Tn by 2030, growing at a CAGR of 12.1% during 2025-2030. This expansion,

supported by sustained public investment under the National Infrastructure Pipeline and large-scale transport, urban development, and energy-transition projects, is increasing both the scale and complexity of execution. As metro rail, green housing, and renewable energy projects accelerate, demand for specialised equipment deployment and reliable execution capabilities continues to strengthen.

Momentum is being driven by higher public capital expenditure and faster award-to-execution cycles, resulting in larger project packages and tighter timelines. As assets become more capital- intensive and technically demanding, contractors are prioritising assured equipment availability, higher-capacity lifting solutions, and strong safety standards to minimise downtime and execution risk. The growing preference for structured, asset-light models is also enabling developers to optimise capital allocation while maintaining operational flexibility, reinforcing the role of organised equipment service providers.

Infrastructure Sector

Infrastructure development remains central to Indias growth strategy, with the Union Budget 2026-27 reinforcing a shift towards a sustainable and resilient ecosystem. Public capital expenditure has been increased to Rs.12.2 Lakhs crore, nearly 9% higher YoY, underscoring continued commitment to infrastructure-led expansion. Key allocations include Rs.3.10 Lakhs crore for the Ministry of Road Transport and Highways, Rs.1.87 Lakhs crore for the National Highways Authority of India, and a record Rs.2.78 Lakhs crore for the Ministry of Railways, sectors characterised by large-scale, equipmentintensive execution.

Investment is also being directed towards Tier-2 and Tier-3 cities through City Economic Regions, supported by grants of Rs.5,000 crore per region, alongside initiatives to improve logistics efficiency, expand inland waterways, and strengthen container manufacturing capacity. As project activity expands across geographies and complexity rises, efficient equipment mobilisation and dependable lifting capabilities are becoming critical to timely infrastructure delivery.

(Source: Union Budget 2026-27)

GOVERNMENT INITIATIVES

Government initiatives announced in the Budget aim to de-risk projects, enhance connectivity, and crowd in private capital. The proposed Infrastructure Risk Guarantee Fund will provide partial credit guarantees during the construction phase, addressing a key constraint in private participation and improving funding visibility. Connectivity-focussed programmes include seven high-speed rail corridors, a dedicated freight corridor between Dankuni and Surat, and plans to operationalise 20 national waterways over the next five years, all involving large, equipmentintensive development.

Complementary measures, including the Construction and Infrastructure Equipment scheme, coastal cargo promotion initiatives, and specialised ship repair hubs, are strengthening domestic manufacturing and logistics ecosystems. Alongside support for industrial parks, medical hubs, and legacy industrial clusters, these initiatives expand the infrastructure pipeline across sectors. As project volumes rise and timelines tighten, reliable equipment availability and efficient mobilisation remain critical to timely, cost- effective execution.

(Source: Union Budget 2026-27)

Power Sector

Indias power sector continues to expand rapidly, reinforcing its position among the worlds largest electricity producers and consumers. As of October 2025, installed generation capacity reached 505 GW, with non-fossil sources at 259 GW (51.37%), surpassing fossil fuels at 245.6 GW. Coal remains the largest single contributor at 218.3 GW, even as the generation mix diversifies. Achieving 50% installed capacity from non-fossil sources by June 2025 marks a structural shift towards cleaner energy, accelerating capacity addition across solar, wind, and associated infrastructure requiring complex, large-scale execution.

Electricity supply continues to scale with rising demand, supported by renewable, nuclear, and storage-backed projects. Renewable capacity stands at 250.6 GW, including 129.9 GW of solar and 53.6 GW of wind, while nuclear capacity is 8.78 GW. Pumped storage projects totalling 11.87 GW and battery storage systems aggregating 43.22 GWh are under development to strengthen grid stability. The Iran-Israel-US conflict has added cost pressures by increasing volatility in imported fuel prices, particularly coal and LNG, while potential disruptions

near the Strait of Hormuz may affect availability and raise short-term generation costs. With targets of 500 GW of non-fossil capacity by 2030 and 100 GW of nuclear capacity by 2047, the expanding power pipeline reinforces sustained demand for specialised equipment deployment and reliable execution across energy assets.

(Source: India Power Capacity Dec 2025)

Renewable Energy Sector

India continues to strengthen its position as a global renewable energy leader, supported by sustained policy backing, large-scale capacity additions, and expanding domestic manufacturing. As of March 2026, renewable energy capacity reached 274.68 GW, led by solar, wind, bioenergy, and small hydro, while the achievement of 50% installed capacity from non-fossil sources marks a significant structural shift in the countrys clean energy transition. This progress strengthens Indias trajectory towards its 500 GW non-fossil capacity target by 2030, supported by continued acceleration in project execution across utility-scale and decentralised energy systems.

Solar and wind remain central to sectoral growth. Solar capacity rose to 150.26 GW, while wind capacity surpassed 56 GW, supported by a record annual wind capacity addition of 6.05 GW during 2025-26, the highest ever recorded in the country and a substantial increase over the previous year. This momentum is further strengthened by expanding domestic manufacturing capabilities and policy initiatives such as PM-Surya Ghar, PM- KUSUM, and the National Green Hydrogen Mission, which continue to broaden renewable deployment across grid-scale, rooftop, and emerging clean energy segments. The scale, geographic spread, and technical complexity of these projects continue to drive demand for specialised equipment mobilisation and efficient on-site execution.

(Source: India Renewable Energy Capacity Apr 2026)

Oil & Gas Sector

India remains a key player in the global oil & gas sector, ranking as the worlds third-largest oil consumer1 and fourth-largest LNG importer2. The increasing industrialisation and urbanisation are further expected to drive the energy demand to nearly double by 2040, with about 1,150-1,6003 Mtoe of energy going towards primary energy consumption. While crude import dependence remains high at about 88.6%4, policy focus has intensified on

strengthening energy security through accelerated domestic exploration, including deepwater and ultra-deepwater prospects in the Krishna-Godavari, Mumbai Offshore, and Andaman basins, supported by successive rounds of the Open Acreage Licensing Policy, alongside efforts to diversify crude sourcing and expand strategic reserves.

At approximately 2585 MMTPA as of January 2026, Indias refining sector remains stable, operating in a landscape of rising demand and high utilisation levels. Consumption of petroleum products, primarily diesel and petrol, reached 241.86 MMT in 2025-26, while Indias refining capacity is projected to reach nearly 309.56 MMTPA by 2028, reinforcing Indias position as a global refining hub. At the same time, ongoing geopolitical tensions in the Middle East involving Iran, Israel, and the United States continue to heighten risks around the Strait of Hormuz, exposing Indias energy supply chain to potential disruptions and crude price volatility. In parallel, the transition towards a gas-based economy aims to increase natural gass share in the energy mix to 15%7 by 2030, supported by massive investments in LNG terminals, regasification, and pipeline infrastructure. Expansion across exploration, refining, gas infrastructure, and petrochemicals continues to involve large, technically intensive projects, reinforcing demand for specialised equipment deployment, heavy logistics, and reliable execution capabilities.

(Sources:

5 https: //www. pib. gov. in/PressReleasePage.

aspxRs.PRID=2183499&reg=3&lang=2

6https -.//energy, economictimes. indiatimes.com/news/

oil-and-gas/indias-oil-demand-to-reach-252-9-million-

tonnes-in-fy26-up-4-65-ppac/l 17316872

aspxRs.PRID=1844630&reg=3&lang=2)

Cement Sector

India continues to play a central role in the global cement industry as the worlds second-largest producer, supported by strengthening demand. Cement volumes rose to 44.7 MMT in December 2025, marking a 13.5% year-on-year increase, while volumes for the first nine months of 2025-26 reached 350.4 MMT, up 9.1% over the corresponding period of the previous year1. This recovery reflects improved construction activity, driven by infrastructure execution and higher government capital expenditure, which has accelerated activity across plant expansion and brownfield projects.

To meet rising demand, manufacturers are undertaking significant capacity additions. CRISIL Ratings estimates that 150-160 MT of new capacity will be added between 2025 and 2028, following 119 MT added over the past five years2. Demand is projected to grow by 6.5-7.5% in 2025-26, supported by programmes such as Pradhan Mantri Awas Yojana and PM Gati Shakti3. This expansion across eastern and coastal regions, along with a growing export orientation, is driving larger, more equipment-intensive projects, reinforcing the need for efficient lifting solutions and dependable execution across cement plant development and logistics infrastructure.

(Sources:

Steel Sector

India continues to strengthen its position as the worlds second-largest crude steel producer, with the sector maintaining strong growth momentum into 2025-26. As per the latest Ministry of Steel data, crude steel production grew by over 10.7% year-on-year to approximately 168.4 MT in 2025-26, reflecting a significant scale-up from the previous year and reinforcing steels role as a key pillar of manufacturing. Production trends remain strong, supported by sustained demand across infrastructure, construction, and industrial sectors, while consistent monthly performance indicates stable capacity utilisation and execution across plants.

Building on this momentum, domestic steel demand continues to benefit from government- led infrastructure expansion and industrial activity, supporting long-term sectoral growth. Capacity expansion remains aligned with the National Steel Policy 2017, with India progressing towards approximately 300 MT steelmaking capacity by 2030-31 through a combination of large-scale brownfield and greenfield projects. As the industry enters a more execution-intensive growth phase, the scale and technical complexity of plant expansions, downstream infrastructure, and material handling systems are driving increased demand for specialised heavy equipment, reliable logistics, and efficient onsite execution across the steel value chain.

COMPANY OVERVIEW

Sanghvi Movers Limited (also referred to asSanghvi, SML, or the Company) is Indias and Asias largest crane rental company and the third largest globally. Incorporated in 1989 and headquartered in Pune, SML provides heavy lifting and transportation solutions through a fleet of over 550 tyre-mounted and crawler cranes, with capacities ranging from 40 MT to 1,600 MT. The Company serves a diversified set of industries, including construction, infrastructure, power, renewable and wind energy, oil & gas, cement, and steel. Its fleet is deployed across more than 150 project sites in India, supported by a pan-India presence with depots across more than ten states. SML also operates more than 100 high-bed trailers and 100 multi-axle lines, enabling integrated project execution, and maintains ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 ISO 27001:2022 certifications.

During the year, SML advanced its strategic diversification under the Elevate 2030 roadmap, including the launch of international operations in the Kingdom of Saudi Arabia through its subsidiary, Sanghvi Movers Middle East, with over 30 cranes deployed. The renewable energy business was reorganised into a wholly owned subsidiary, Sangreen Future Renewables Private Limited, contributing approximately 20% of the Groups consolidated bottom line. The Company also strengthened its senior leadership with the appointment of a Chief Executive Officer, Chief Financial Officer, and a Managing Director for its Saudi Arabian operations, reinforcing governance and execution across its expanding business.

SEGMENT-WISE PERFORMANCE Crane Rental Business

The crane rental business remained the Companys primary revenue driver, contributing 65% of operating revenue in FY 2025-26. Segment revenue stood at Rs.693 crore, supported by 35% growth in crane rental revenue in India. Average capacity utilisation in India was 79% for the year, improving to 87% in Q4, while the average monthly blended yield stood at 2.12% and reached 2.24% in Q4. Despite domestic competition, the Company maintained its focus on value-led customer engagement, disciplined asset deployment and calibrated commercial interventions to sustain yields and margins.

During FY 2025-26, the Company expanded its Saudi Arabian operations, incurring capital expenditure of Rs.101 crore and adding 36 cranes. Deployment remained demand-led, with new cranes moving directly to project sites. In March 2026, utilisation approached 90%, while yields exceeded 4.5%. Although higher manpower, logistics and maintenance costs partly offset the yield advantage, the business began generating positive monthly EBITDA, indicating improving operating traction.

EPC Business

The services portfolio, comprising the renewable energy engineering and construction business under Sangreen Future Renewables Private Limited and the Project EPC vertical, continued to scale and diversify the Groups revenue mix. During FY 2025-26, the renewables business generated revenue of Rs.333 crore, nearly doubling over the previous year, and contributed 31% of operating revenue. The asset- light business delivered 2 GW of projects and closed with a return on capital employed of approximately 70%, reflecting its high-return, lower-margin model.

The Project EPC vertical generated revenue of Rs.45 crore and accounted for 4% of operating revenue. Revenue recognition under the percentage of completion method remained linked to execution milestones. Accordingly, performance may vary between periods, particularly during the initial stages of projects. The Company continues to select contracts based on execution capabilities and profitability thresholds.

Business Outlook

Anchored in its transition from a pure-play crane rental company to a diversified group under the

Elevate 2030 roadmap, the Company delivered its highest-ever revenue of Rs.1,100 crore for 2025-26. Consolidated EBITDA reached Rs.429 crore with a margin of 40.1%, and full-year PAT stood at Rs.184 crore. Built on six pillars, the strategy aims to scale each vertical while strengthening long-term value creation. Entering 2026-27, the consolidated opening order book stands at Rs.1,050 crore, supported by an open inquiry pipeline of approximately Rs.4,000 crore.

The Company incurred a total capital expenditure of X414 crore during 2025-26, comprising Rs.373 crore in India and Rs.101 crore in its Saudi Arabian subsidiary, while Rs.165 crore was deferred to 2026-27. Demand visibility across sectors supports confidence in sustained momentum.

The crane rental business remains the primary growth driver, contributing Rs.693 crore and accounting for 65% of total operating revenue. In Saudi Arabia, the Company has built significant revenue visibility with an inquiry pipeline of approximately US$ 50 Mn over the next 24 months, including US$ 5 Mn in confirmed orders, and aims to become a top three player within five years. Domestically, traction across renewables, cement, steel, nuclear, and infrastructure remains strong, supported by continued expansion in core industries. Average capacity utilisation for the year improved to 79.02%, with average blended yields at 2.12% per month.

The EPC portfolio scaled progressively, yielding a balanced revenue mix. The Renewables (Wind EPC)

segment generated Rs.333 crore, representing 31% of the total revenue, while the Project EPC vertical contributed Rs.45 crore, making up the remaining 4%. The project EPC vertical is expected to build scale over time despite near-term variability under the percentage of completion method.

FINANCIAL PERFORMANCE

During the year under review, SML recorded strong revenue growth, supported by the operationalisation of its Saudi Arabia presence, increased contribution from the renewable energy subsidiary, and sustained demand from core industries such as cement and steel. Total income rose 33.63% YoY to Rs.1,09,962.76 Lakhs, led by the renewable segment, while profit before tax increased to Rs.25,288 Lakhs from 21,672 Lakhs in the previous year. EBITDA stood at Rs.42,114 Lakhs, with margins at 39.34% compared to 47.44% last year.

Capacity utilisation averaged 79.02%, while blended yield remained resilient at 2.12% per month. The Company invested X414 crore in capability expansion, including the addition of 132 new cranes taking cumulative lifting capacity to 22,450 MTPA. Monetisation of 132 cranes generated a profit of 84.44 crore.

The order book strengthened to Rs.1,053 crore as of May 2026. A healthy net debt-to-equity ratio of 0.47x supports this growth outlook, positioning the Company well despite near-term profitability pressures.