Are Sanghvi Movers Ltd latest results good or bad?

Sanghvi Movers Ltd's latest financial results for Q3 FY26 present a complex picture of the company's performance. On a year-on-year basis, the company reported a net profit of ₹36.27 crores, reflecting a growth of 24.55%, while net sales reached ₹209.90 crores, marking a significant increase of 34.44%. These figures indicate a robust recovery compared to the previous year, driven by increased crane deployment and favorable industry dynamics. However, the sequential performance reveals challenges, with net sales declining by 23.21% from the previous quarter and net profit falling by 27.84%. This suggests potential cyclicality in project execution or operational headwinds that may be impacting the company's short-term performance. The operating margin improved to 38.49% from the previous quarter, but it remains significantly lower than the 46.86% achieved in the same quarter last year, indicating ongoing pressure on operational efficiency. The company's profitability metrics show a decline in the PAT margin to 17.28%, down from 18.39% in the prior quarter and 18.65% year-on-year. This margin compression is concerning, as it reflects both operational pressures and the impact of rising costs. Additionally, Sanghvi Movers has seen an increase in employee costs, which may indicate higher wage inflation or an expanded workforce to support operations. Sanghvi Movers' balance sheet shows a notable increase in leverage, with long-term debt rising significantly, reflecting aggressive fleet expansion. The debt-to-equity ratio has reached its highest level in recent periods, which necessitates careful monitoring in light of the current margin-compression environment. Overall, while the year-on-year growth figures are encouraging, the sequential declines in revenue and profit, along with margin pressures and rising leverage, highlight the operational challenges the company faces. The company has experienced an adjustment in its evaluation, reflecting these mixed operational trends. Investors should remain vigilant regarding the company's ability to stabilize margins and manage leverage in the coming quarters.