Sanghvi Housing and Infrastructure IPO

Strengths · 8

• 01Revenue from operations grew 34.73% in FY2026 to Rs 101.84 crore, after 20.66% growth in FY2025.
• 02Profit for the year rose from Rs 7.60 crore in FY2024 to Rs 20.81 crore in FY2025 and Rs 26.26 crore in FY2026.
• 03EBITDA margin was 35.22% in FY2026 against 20.56% in FY2024, and EBITDA rose from Rs 12.88 crore to Rs 35.87 crore over the same period.
• 04The debt to equity ratio fell from 3.75 in FY2024 to 2.30 in FY2025 and 1.61 in FY2026, as net worth rose from Rs 17.63 crore to Rs 58.66 crore.
• 05Return on equity was 36.72% and return on capital employed 20.26% in FY2026.
• 06The company had 11 projects under development as of 31 March 2026, with 9,67,430 square feet of developable area and 3,42,493 square feet of saleable area.
• 07The promoters and promoter group together hold 100.00% of the pre-issue equity share capital, so no outside investor is selling in this issue.
• 08The statutory auditors have recorded no qualifications that are not given effect to in the restated consolidated financial statements.

Risks · 10

• 01Net cash flow used in operating activities was Rs 37.26 crore in FY2026 and Rs 24.43 crore in FY2025, even though the company reported a profit of Rs 26.26 crore in FY2026.
• 02Total borrowings stood at Rs 115.25 crore as of 31 March 2026 against a net worth of Rs 58.66 crore, a debt to equity ratio of 1.61 and a debt to EBITDA ratio of 3.21.
• 03Unsecured loans were Rs 53.92 crore as of 31 March 2026, or 46.79% of the total loans availed on a consolidated basis, and the lenders can recall them at any time.
• 04All development activity is in the Mumbai Metropolitan Region and Thane district, so economic, regulatory or natural-disaster shocks in these two regions hit the whole business.
• 05The company had 56 unsold units in its completed projects and 434 unsold units in its ongoing projects as of 31 March 2026, and its revenue depends on selling this inventory in time.
• 06A majority of projects run through subsidiaries and associates that are under no obligation to pass their profits up, and the entire identified object of Rs 164.78 crore is an investment into three such LLPs.
• 07EBITDA margin fell from 39.12% in FY2025 to 35.22% in FY2026 and return on equity fell from 44.18% to 36.72% over the same year.
• 08Funding the acquisition of future projects and general corporate purposes is not individually capped above 25% of the gross proceeds and together may take up to 35% of the gross proceeds, so a large part of the money raised has no named use yet.
• 09There is one material civil litigation against the company involving Rs 5.00 crore, five criminal proceedings and two tax proceedings against the promoters involving Rs 3.56 crore, and three tax proceedings against the subsidiaries involving Rs 0.35 crore.
• 10The business model depends on winning society redevelopment bids, and these projects have long gestation periods where delays or cost overruns fall on the company.

Sanghvi Housing and Infrastructure Limited is a real estate developer that builds commercial and residential projects across the Mumbai Metropolitan Region (MMR) and Thane district in Maharashtra. Its main business is the redevelopment of existing residential properties and housing societies in established urban locations, where it rebuilds the property and hands rehabilitation premises to the eligible existing occupants. It also takes up selective greenfield development on land parcels it buys itself. The company was incorporated in Maharashtra and carries the corporate identity number U45200MH2005PLC150465.

The company says its presence is concentrated in the Western Suburbs of Mumbai, where it has executed and continues to develop most of its projects, a position it attributes to the CareEdge Research Report. Its customers are individual homebuyers, commercial tenants and existing property owners who want their buildings redeveloped. The company says its concentration in MMR and Thane district lets it work with local property values, buyer preferences, development rules and approval processes it already knows.

As of 31 March 2026 the company had 11 projects under development, with 9,67,430 square feet of developable area and 3,42,493 square feet of saleable area under development. During FY2026 it commenced construction on 3,76,000 square feet of developable area and 1,11,435 square feet of saleable area, covering 172 units available for sale. In FY2025 the figures were 2,01,730 square feet of developable area, 76,992 square feet of saleable area and 103 units, and in FY2024 they were 3,33,550 square feet, 1,26,119 square feet and 243 units.

Most projects are run through subsidiaries and associates rather than the company itself. Three of these entities - Sanghvi Green LLP, SanghviP Builders LLP and Psanghvi and Jain Builders LLP - are developing the ongoing projects Sanghvi Horizon, Sanghvi Boulevard and Sanghvi Sapphire, and the entire identified object of this issue is an investment of Rs 164.78 crore into those three LLPs.

The promoters are Prithviraj Sankalchand Sanghvi, aged 60, who provides strategic direction, and Pakshal Prithviraj Sanghvi, aged 36, who is Chairman and Whole-time Director. Pakshal Prithviraj Sanghvi holds a Bachelor's degree in Architecture from NMIMS, completed in 2012, and a Master of Science degree from Manchester Business School, earned in 2014. The registered office is at Varma Chambers, Homji Street, Horniman Circle, Fort, Mumbai, and the company sells under the Sanghvi Realty name.

The industry

The company operates in India's residential real estate and urban infrastructure industry. The CareEdge Report it cites says the residential real estate industry in India has grown in scale on the back of rising urbanisation, household income growth and changes in housing preferences, with demand concentrated in large metropolitan regions such as Mumbai, Delhi-NCR, Bengaluru, Hyderabad and Pune, and Tier II and Tier III cities emerging as newer growth centres on better connectivity and relative affordability. The report also points to government programmes such as Pradhan Mantri Awas Yojana, the Model Tenancy Act and the digitisation of land and property records as steps that improved transparency and access to formal housing, and notes that institutional investors have raised their participation in residential development through joint ventures and platform investments. The company sits in this market as a redevelopment-focused developer with 11 projects and 9,67,430 square feet of developable area under development as of 31 March 2026. The draft abridged prospectus does not state a market size figure for the industry.

Customer concentration: The draft abridged prospectus reports no revenue concentration from key customers, as the company sells to individual homebuyers and commercial occupiers across its 11 projects under development as of 31 March 2026.