Sanghvi Movers Ltd Management Discussions

Global economy

The global economy continued to display resilience, maintaining steady growth despite persistent uncertainties. According to the IMFs July 2025 projections, global growth is stood at 3.2% and is estimated to reach 3.0% in 2025 and 3.1% in 2026. This moderation reflects the fading impact of earlier trade front-loading, ongoing geopolitical tensions, and uneven policy support across economies. Recent adjustments in tariff policies and a shift towards more accommodative monetary stances in several markets have helped support trade and financial conditions. Inflation is expected to ease to 4.2% in 2025 and 3.6% in 2026, though it may remain above target in some advanced markets. In 2024, global growth held at 3.2%, stronger than initially expected, though outcomes diverged across economies. Advanced markets faced persistent services inflation, delaying monetary normalisation, while the United States slowed on softer consumption and output. By contrast, the euro area rebounded, supported by services and net exports. In Asia, momentum strengthened, with China and India benefitting from robust domestic demand and external trade, helping narrow output gaps across emerging markets.

Looking ahead, growth in advanced economies is expected to stay modest, while emerging markets are poised to lead the expansion, supported by resilient exports, easing trade restrictions, and favourable domestic policies. Improved financial conditions, lower-than-expected tariff rates, and targeted fiscal measures are contributing to stability, while the trajectory of geopolitical developments and trade dynamics will remain key determinants.

Expanding horizons

Saudi Arabias economy is projected to grow by 3.0% in 2025, up from 1.3% in 2024, driven by robust non-oil activities under the Kingdoms diversification agenda. With government-led projects and Vision 2030 investments fuelling demand, the construction sector is expanding rapidly, while oil production is set to rise from 8.9 Million bpd in 2025 to nearly 10 Million bpd by 2026. Infrastructure, housing, and energy developments are backed by higher public spending, even as fiscal and external buffers remain ample. These dynamics create a significant pipeline of capital-intensive projects that demand reliable heavy-lift solutions and specialised crane rental services.

Indian economy

The Indian economy is showcasing robust growth and stability, solidifying its position as the fastest-growing major economy globally. This performance is underpinned by strong domestic demand, controlled inflation, and a resilient external sector. In 2024-25, real GDP growth was estimated at 6.5%, which is expected to continue its momentum in 2025-26. Inflation has eased considerably, providing relief to both households and businesses. In May 2025, the Consumer Price Index (CPI) inflation stood at 2.82%, the lowest since February 2019.

The external sector remains a strong pillar of the economy, with total exports reaching a new record of USD 824.9 Billion in 2024-25. Foreign Direct Investment (FDI) inflows also saw a significant increase, rising 14% to a provisional USD 81.04 Billion in FY 2024-25. As of June 20, 2025, Indias foreign exchange reserves stood at USD 697.9 Billion. Businesses are expanding capacity, with many operating near their maximum output levels.

At the same time, public investment remains high, especially in infrastructure, while stable borrowing conditions are helping firms and consumers make forward-looking decisions.

Outlook

The global economy shows continued resilience, with growth projections revised upward but largely on account of temporary factors. Risks remain tilted to the downside from geopolitical tensions and rising fiscal deficits. In contrast, India presents a picture of stable growth, driven by strong domestic demand, easing inflation and a resilient external sector. Inflation has fallen to multi-year lows, while public investment in infrastructure and stable borrowing conditions continue to underpin economic momentum. This supportive domestic environment provides a solid foundation for Sanghvi Movers to operate, even as global uncertainties persist.

Industry review

Crane industry

The Indian crane market is poised for robust expansion, with its size estimated at USD 1.48 Billion in 2025 and projected to reach USD 2.06 Billion by 2030, reflecting a CAGR of 6.79% during 2025-2030. This growth is underpinned by rapid urbanisation, large-scale infrastructure development, and expansion in residential and commercial real estate, which continue to drive demand for cranes across construction, manufacturing, and logistics.

The construction sector remains the dominant end-user, with cranes deployed extensively in high-rise buildings, metro projects, bridges, and highways. Concurrently, the manufacturing and logistics sectors are leveraging cranes for heavy lifting in plants, warehouses, and ports, supporting industrial and trade growth. Among crane types, mobile cranes lead the market due to their flexibility, ease of mobility, and suitability for urban sites, while tower cranes remain integral to vertical construction and crawler cranes are favoured for heavy lifting on softer terrains. Technological advancements, including telematics, enhanced safety features, and improved load-handling capabilities, are reshaping the sector, boosting both productivity and environmental compliance.

6.79

CAGR till FY 2029-30

Construction equipment sector

Indias construction equipment market was valued at USD 8.55 Billion in 2025 and is projected to advance at an 8.33% CAGR, reaching nearly USD 12.76 Billion by 2030. Growth is being propelled by the National Infrastructure Pipeline (NIP), accelerating demand for earthmoving, roadbuilding and material-handling machinery. Regulatory shifts such as the rollout of CEV Stage V emission norms are further catalysing investments in cleaner drive systems, while localisation programmes are shortening supply chains and reducing import costs.

Market dynamics are also evolving across equipment categories and regions. Earthmoving equipment remained the largest segment, commanding 57.10% of the market in 2024 and diesel-powered equipment accounted for 95.15% of the market in 2024, though electric and hybrid models are expanding rapidly at a 16.21% CAGR. From the demand perspective, infrastructure projects accounted for 43.25% of market share in 2024, while mining has emerged as the fastest-growing segment at an 11.11% CAGR. Regionally, South India led with 32.5% of demand, while the North-East is expected to expand at the fastest pace, growing at 13.20% CAGR by 2030.

1,40,191

Total construction equipment sales in FY 2024-25

8.33%

CAGR of the construction equipment sector till FY 2029-30

Construction sector

The Indian construction market contributes approximately 8% to Indias GDP, and is valued at USD 1.04 Trillion in 2024, projected to grow to USD 1.21 Trillion in 2025 and further to USD 2.13 Trillion by 2030, registering a CAGR of 12.1% during 2025-2030. This rapid expansion is underpinned by strong government-backed initiatives such as the National Investment Pipeline and major projects. A sharper focus on sustainable and smart infrastructure is also accelerating growth, with significant investments in metro rail expansion, affordable green housing and renewable energy projects.

Robust investments in infrastructure development have also driven an annual growth rate of nearly 30% in construction equipment demand. While regulatory hurdles and bureaucratic inefficiencies continue to challenge timelines and costs, the integration of digital technologies such as BIM, AI, and IoT is enabling greater design precision, collaboration and operational efficiency.

12.1%

CAGR of the construction sector between 2025-2030

USD 1.03 Billion

Revenue share of construction sector of the total revenue of crane rental industry in FY 2023-24

Infrastructure sector

Infrastructure development remains central to Indias long-term economic ambitions, with a significant push in the Union Budget 2025-26. The capital investment outlay has been raised to H11.21 Lakh Crores (USD 128.64 Billion), equivalent to 3.1% of GDP, reflecting the governments commitment to building world-class infrastructure. To accelerate private participation, the Infrastructure Finance Secretariat has been established as a single-window mechanism to support stakeholders and ensure efficient project delivery.

To recycle capital and fund new projects, the Second Asset Monetisation Plan aims to reinvest H10 Lakh Crores (USD 115.34 Billion) over 2025-30. Foreign interest is equally strong, with cumulative FDI inflows into construction development and infrastructure activities totalling USD 45.64 Billion between April 2000 and March 2025. Strategic partnerships, including the USD 42 Billion India-Japan investment plan by 2027, further reinforce the sectors position as a cornerstone of Indias growth trajectory.

I 11.21 Lakh Crores

Budgetary allocation for infrastructure development in union budget 2025-26

Government initiatives

Indias infrastructure development is being propelled by transformative programmes such as the PM Gati Shakti National Master Plan, which targets investments of USD 1.3 Trillion to cut logistics costs, expand cargo capacity, and reduce turnaround times. Complementing this, the National Infrastructure Pipeline (NIP) spans over 9,000 projects across 34 sectors with an outlay of USD 1.2 Trillion (2020-25), reinforcing Indias ambition to build world-class infrastructure at scale.

Significant progress is also visible across transport and urban sectors. In railways, India commissioned 31,180 km of track over the past decade, with daily additions rising from 4 km in FY 2014-15 to 14.54 km in FY 2023-24. The aviation network continues to expand, with 158 operational airports and 84 more built in the past decade, while plans are underway to add 120 new airports in the next 10 years. Urban transformation remains a focus, with 7,804 Smart Cities Mission projects worth USD 21.9 Billion sanctioned, of which nearly 67% are already complete. Alongside, initiatives in green energy and digital infrastructure, including renewable projects and ocean thermal technologies, underscore the governments commitment to sustainable growth. Together, these measures position infrastructure as a cornerstone of Indias economic expansion, connectivity, and competitiveness.

Power sector

Indias power sector has achieved significant expansion in recent years, emerging as the third-largest producer and consumer of electricity globally. As of June 2025, total installed power capacity stood at 476 GW, of which thermal power accounted for 240 GW, or 50.5% of capacity. Despite rising demand, power shortages have been sharply reduced from 4.2% in 2013-14 to just 0.1% in 2024-25, reflecting strengthened supply reliability and grid efficiency.

Electricity consumption has also risen in line with economic growth, with per capita consumption increasing by 45.8% over the last decade, reaching 1,395 kWh in 2023-24, up from 957 kWh in 2013-14. Total electricity generation grew from 1,168 BU in 2015-16 to an estimated 1,824 BU in 2024-25, highlighting the sectors rapid scale-up to meet industrial, commercial, and household demand. More than 2.8 Crores households have been electrified, achieving near-universal access. Looking ahead, Indias energy demand is expected to expand at 6-6.5% annually over the next five years. Peak power demand is projected to reach 277 GW by FY 2026-27 and 366 GW by FY 2031-32, underscoring the scale of future requirements.

476 GW

Total installed energy capacity in FY 2024-25

Renewable energy sector

India continues to consolidate its position as a global leader in renewable energy, underpinned by strong policy support, ambitious climate commitments and accelerating investments. As of March 2025, the countrys renewable energy capacity, including biomass and waste-to-energy, reached 220 GW, accounting for nearly 47% of total installed power capacity. This growth underscores Indias progress towards its target of 500 GW of renewable capacity by 2030.

India has set ambitious targets to reduce the carbon intensity of its economy by less than 45% by 2030, achieve 50% cumulative power capacity from renewables by 2030, and attain Net Zero carbon emissions by 2070. The project pipeline remains robust, with renewable capacity projected to reach 250 GW by 2026. Annual wind capacity additions are expected to more than double, rising to an average of 7.1 GW over FY 2026-27, compared with 3.4 GW in FY 2024-25, driven by supportive government measures. The sector is witnessing sustained momentum in investment. The FY 2025-26 Union Budget increased allocations to the Ministry of New and Renewable Energy (MNRE) by 39%, totalling H25,649 Crores (USD 3.03 Billion). In parallel, public and private sector players are ramping up commitments; BPCL, for example, has announced plans to invest USD 1.19 Billion in green energy, targeting 2 GW by 2025, 10 GW by 2035, and installing 7,000 EV charging stations in five years.

Indias renewable energy growth is also strategically aligned with its role in global energy demand, with the country projected to contribute 35% of global energy demand growth over the next two decades. Alongside solar and wind expansion, emerging investments in natural gas, LNG, and hydrogen are expected to play a complementary role in supporting decarbonisation and ensuring long-term energy security.

500 GW

Renewable energy target by FY 2029-30

Oil and gas sector

India remains a central player in the global oil and gas landscape, retaining its position as the worlds third-largest consumer of oil and the fourth-largest importer of liquefied natural gas (LNG). The countrys energy demand is expected to nearly double by 2040, with primary energy consumption projected to reach 1,123 MT of oil equivalent as GDP expands to USD 8.6 Trillion.

Indias refining sector has strengthened considerably, with installed refining capacity rising from 215.1 MMTPA in FY 2013-14 to 256.8 MMTPA in FY 2023-24, making it the second-largest refiner in Asia. Looking ahead, refining capacity is targeted to expand to 450-500 MT by 2030, with projections indicating 309.5 MMTPA by 2028. India, currently the worlds fourth-largest crude oil refiner, is also expected to add nearly one Million Barrels per day (mb/d) of refining capacity by 2028.

Domestic demand continues to drive strong growth in petroleum product consumption, which increased from 158.4 MMT in FY 2013-14 to 243.3 MMT in FY 2023-24, reflecting a CAGR of 4% over the past decade. In FY 2024-25, consumption stood at 239.2 MMT, underscoring the countrys resilience in meeting rising energy requirements.

This growth is supported by the governments focus on enhancing energy security through diversification of supply sources, infrastructure upgrades, and strategic investment in refining and natural gas facilities.

239.2 MMT

Domestic oil and gas consumption in FY 2024-25

450-500 MMT

Refining capacity by FY 2029-30

Cement sector

India, the worlds second-largest cement producer, continues to witness strong momentum in demand and capacity expansion. Cement volumes reached 37.2 MT in December 2024, reflecting a 4% YoY rise, while total volumes for April-December FY 2024-25 stood at 319 MT, up 3% from the previous year. Overall consumption touched 445 MMT in FY 2023-24 and is projected to rise sharply to 670 MMT by 2030, supported by infrastructure growth, residential projects, and government spending.

Geographically, the sector remains concentrated in South and West India, with 77 large plants located across Andhra Pradesh, Rajasthan, and Tamil Nadu. This regional dominance reflects favourable limestone availability, strong infrastructure demand, and proximity to ports for exports.

670 MMT

Overall cement consumption by FY 2029-30

Steel industry

India retained its position as the worlds second-largest producer of crude steel, with production reaching 137.96 MT during April to February FY 2024-25, while finished steel output stood at 132.57 MT. The Steel Authority of India Limited (SAIL) achieved its highest-ever annual crude steel output in FY 2022-23 at 18.29 MT, reflecting a 5.3% growth over its previous record. Steel consumption from Indias infrastructure sector is projected to rise to 11% of total demand by FY 2025-26, while the automotive sector is expected to see a steady uptick in demand.

Industry capacity has expanded from 142.29 MT in FY 2019-20 and is anticipated to nearly double to 300 MT by 2030-31, underpinned by significant investments and policy support. Indias demand for steel is forecast to grow at an annual rate of 5-7.3% over the next decade, making it a cornerstone of the countrys industrial growth trajectory.

The steel industry also continues to attract investment, with 100% FDI permitted under the automatic route. Between April 2000 and December 2024, the Indian metallurgical sector drew FDI inflows worth H1,12,282 Crores (USD 18.32 Billion), reflecting global confidence in Indias long-term steel demand.

100%

FDI in automotive route

137.96 MT

Crude steel production in FY 2024-25

Company overview

Sanghvi Movers Limited (SML) is Indias and Asias largest crane rental company and ranks as the fourth-largest globally (International Cranes, June 2024). Incorporated in 1989 and headquartered in Pune, the Company has built a strong market presence through consistent growth in scale and capabilities. Its equity shares are listed on the Bombay Stock Exchange and the National Stock Exchange.

SML holds ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications, underscoring its adherence to quality management, environmental stewardship, and occupational health and safety standards. The Company operates a diversified fleet of over 370 medium to large-sized heavy-duty telescopic and crawler cranes, ranging from 20 MT to 1,600 MT capacity, deployed at over 150 sites across India.

SML serves a broad spectrum of industries, including power, steel, cement, fertilisers, petrochemicals and refineries, metro rail projects, and renewable energy, particularly the wind sector. To complement its lifting solutions, the Company also operates a fleet of over 100 high-bed trailers and 100 multi-axle lines, enabling efficient and reliable transportation of equipment. SML has established a strong pan-India footprint with depots across more than ten states, enabling efficient and timely service delivery. Since its IPO in 1995, the Company has strategically expanded its fleet, achieving a significant milestone in FY 1997-98 through its collaboration with Reliance Industries Limited, which involved a capital expenditure of over H 50 Crores and the deployment of more than 75 cranes. Driven by continuous investments in a world-class crane fleet, advanced technology, and a skilled workforce of over 2,500 employees, SML has reinforced its position as a leader in the crane rental industry.

150+

Sites across India

2,500+

Employees

Financial performance

In FY 2024-25, Sanghvi Movers Limited (SML) recorded strong revenue growth but faced margin pressures due to softer crane rental demand, prolonged monsoons, election-related disruptions, and rising competition. The Companys total income increased 27% YoY to H823 Crores, led by its Renewable segment, while net profit moderated to H157 Crores from H188 Crores in the previous year owing to higher depreciation and interest costs. EBITDA stood at H371 Crores, representing a margin of 45% compared to 63% last year. Capacity utilisation averaged 73%, with blended yield remaining resilient at 2.05% per month. SML invested H235 Crores in capability expansion, including the addition of 46 new cranes, taking cumulative lifting capacity to 91,693 MTPA, while monetisation of 30 cranes generated a profit of H13 Crores. The order book strengthened to H600 Crores as of April 2025, with renewables contributing nearly 63%, supported by a healthy net debt-to-equity ratio of 0.33:1, positioning the Company on a strong footing for future growth despite near-term profitability pressures.

Opportunities

• Infrastructure development: Indias strong emphasis on infrastructure growth, including Smart Cities and large-scale industrial projects, is driving rising demand for heavy-lifting solutions

• Renewable energy: The rapid expansion of renewable energy, particularly wind power, presents significant opportunities for SML to strengthen its presence in this sector

• Urbanisation and industrialisation: Expanding urban centres and growing industrial activity continue to generate sustained demand for crane rental services in construction and facility development

• Technological advancement: Adoption of digital monitoring, automation, and other advanced technologies in crane operations offers avenues to enhance efficiency, safety, and service quality

• Global expansion: Building on its strong domestic presence, SML has entered in Kingdom of Saudi Arabia markets experiencing accelerated infrastructure development

Threats

• Economic uncertainty: Volatility in economic conditions, exchange rate fluctuations, and regulatory changes may influence infrastructure investments, thereby impacting demand for crane rental services

• Intense competition: The presence of multiple domestic and global players in the crane rental industry heightens competitive pressures, which may affect pricing and profitability

• Supply chain risks: Reliance on external suppliers for crane components and maintenance poses risks of supply disruptions, potentially impacting operational efficiency and client service levels

Risk management

Sanghvi Movers Limited (SML) has established a comprehensive risk management framework operating across multiple organisational levels. The Board of Directors sets the overall risk management strategy, while the Risk Management Committee oversees execution and monitoring. This approach ensures alignment with long-term objectives while enabling proactive identification and mitigation of risks.

Key risk categories and mitigation measures include:

• Economic risks managed through client diversification, flexible pricing, and maintaining financial strength

• Market risks addressed by diversification across industries and geographies, and long-term client contracts

• Operational risks mitigated through strict safety protocols, preventive equipment maintenance, and employee training

• Cybersecurity risks countered through robust IT security systems and employee awareness programmes

• Financial risks managed by diversifying revenue streams, maintaining liquidity, and regular financial reviews

• Sustainability risks addressed by adopting energy-efficient practices, ESG initiatives, and stakeholder engagement

• Technology risks managed through reliable IT infrastructure, regular backups, and disaster recovery planning

Human capital management

SML recognises that specialised talent is fundamental to operational excellence and growth. The Company has implemented several initiatives to strengthen its workforce:

• Leadership development programmes to build a pipeline of future leaders.

• Career planning and skill development to keep employees future ready.

• Employee engagement and recognition frameworks to foster motivation and retention.

• Talent rotation across projects and geographies to build multi-functional expertise and enhance employee loyalty.

These initiatives ensure a motivated, skilled, and future-ready workforce aligned with SMLs growth strategy.

Internal control systems

SML maintains a robust internal control system aligned with the scale and complexity of its operations. The framework ensures accurate financial reporting, safeguarding of assets, and compliance with applicable regulations. Documented policies, well-defined responsibilities, and structured processes support transparency and consistency.

Independent internal audits are conducted regularly to review systems and procedures, with findings reviewed by management for continuous improvement. This framework ensures effective resource utilisation, regulatory compliance, and reliability of financial reporting, thereby reinforcing governance standards and stakeholder confidence.

Cautionary statement

The Management Discussion and Analysis section includes forward-looking statements concerning future prospects, which involve numerous identified and unidentified risks and uncertainties that could significantly differ from actual results. Additionally, changes in the macro-environment, such as global pandemics like COVID-19, present unforeseen, unprecedented, and constantly evolving risks to the Company and its operating environment. The assumptions underlying these statements rely on available internal and external information and serve as the basis for determining certain facts and figures in the report. As these assumptions are subject to change over time, the estimates upon which they are based may also change accordingly. These forward-looking statements reflect the Companys current intentions, beliefs, or expectations, and each statement speaks only as of the date it was made. The Company does not undertake to revise or update any forward-looking statements, whether due to new information, future events, or otherwise.