Sanghvi Housing And Infrastructure Limited IPO

01At a glance

What the company does: develops residential and some commercial buildings in the Mumbai Metropolitan Region and Thane district, mostly by redeveloping existing housing society buildings; 28 of its 31 projects are redevelopments (DRHP p.165, DRHP p.166).

Who pays it: individual home purchasers of the flats left over after existing society members are rehoused, plus commercial tenants; the abridged prospectus marks revenue from key customers as "Not Applicable" (AP p.2).

Why it is raising money: ₹16,477.65 lakh to invest in three subsidiaries for the Sanghvi Horizon, Sanghvi Boulevard and Sanghvi Sapphire redevelopment projects, and an unstated amount for acquiring future projects and general corporate purposes (DRHP p.97).

How fast it has grown: revenue from ₹6,264.44 lakh in FY24 to ₹10,183.86 lakh in FY26, about 27.5% a year, and profit after tax from ₹760.45 lakh to ₹2,626.36 lakh, about 85.8% a year (our arithmetic, DRHP p.115).

The one thing to understand: profit is booked as construction progresses, while cash goes out ahead of it. Operating cash flow was −₹3,726.06 lakh in FY26 against profit before tax of ₹3,558.35 lakh, as work-in-progress inventory rose to ₹18,203.93 lakh (DRHP p.69, DRHP p.67).

02The business, in plain words

A redevelopment developer signs an agreement with a housing society whose building is old, pays the members rent while they live elsewhere, demolishes and rebuilds, hands the members new flats free, and earns its money from the extra flats it is allowed to build and offer for sale to outsiders (DRHP p.185, DRHP p.187).

Housing society → grants development rights → the company rehouses members, builds through contractors → the company is paid for the additional flats by home purchasers, in stages linked to construction.

The company does not build with its own workforce; civil work is given to third-party contractors under work orders (DRHP p.186). It had 44 permanent employees at August 31, 2026, 21 of them in site execution (DRHP p.189). Most projects are held in subsidiaries and associates, 10 and 6 of them respectively, many of them partnerships or LLPs with outside partners (DRHP p.166, DRHP p.204).

The portfolio is 6 completed, 10 ongoing and 15 upcoming projects, totalling 54,82,635 sq. ft. of developable area and 21,81,772 sq. ft. of saleable area (DRHP p.165). The upcoming projects are 73.23% of the developable area and none of them has a commencement certificate yet (DRHP p.286). By segment, economy and mid-market projects make up about 83.83% of the saleable area (DRHP p.287).

Earnings equation: Revenue = saleable sq. ft. sold × price per sq. ft. × share of construction completed in the year. Revenue is recognised over time by the share of project cost incurred (DRHP p.290). The document does not give realisations per square foot.

03Where the money comes from

Source: DRHP p.304.

The document does not give customer concentration; the abridged prospectus says revenue from key customers is "Not Applicable" (AP p.2). The concentration it does show is by project entity. Subsidiaries produced 95.08% of consolidated total income in FY26 (DRHP p.32).

Source: DRHP p.31. All projects are in Maharashtra, particularly Mumbai (DRHP p.284). Read from the filing: revenue in any year rests on a handful of projects; in FY24 one entity, Sanghvi Spaces LLP, produced 71.79% of total income and 92.71% of profit after tax (DRHP p.31).

04The growth record

Source: DRHP p.115, DRHP p.68, DRHP p.69, AP p.4.

Our arithmetic: revenue grew about 27.5% a year from FY24 to FY26, EBITDA about 66.9% and profit after tax about 85.8% (DRHP p.115). EBITDA margin rose 1,466 basis points and PAT margin 1,365 basis points over the two years (our arithmetic, DRHP p.115). Profit to owners of the company grew more slowly, about 69.7% a year, because the share going to minority partners rose to 19.26% of FY26 profit (our arithmetic, DRHP p.68; DRHP p.307).

The company's EBITDA includes its share of associates' profit, ₹473.49 lakh in FY26 (DRHP p.167, DRHP p.68). Operating cash flow for FY26 was −₹3,726.06 lakh, or −₹37.3 crore (DRHP p.69). Other income was ₹263.41 lakh, 7.4% of FY26 profit before tax, and the share of associates' profit was 13.3% of it (our arithmetic, DRHP p.68). Net debt of ₹10,844.21 lakh was 3.0 times FY26 EBITDA (our arithmetic, DRHP p.67, DRHP p.115). RoCE for FY26 is printed as 20.25% in the draft and 20.26% in the abridged prospectus (DRHP p.115, AP p.5). No change in accounting policy was made in the three years (DRHP p.310).

05What the growth is made of

Revenue rose from ₹6,264.44 lakh in FY24 to ₹10,183.86 lakh in FY26 (DRHP p.304). Contract revenue, recognised as construction progresses, accounts for ₹3,394.18 lakh of the ₹3,919.42 lakh increase, and sale of services, rent and maintenance for the rest (our arithmetic, DRHP p.304). The company attributes the FY26 rise to "progress of construction" on ongoing projects (DRHP p.305).

The document gives area started each year (3,33,550, 2,01,730 and 3,76,000 sq. ft. of developable area in FY24, FY25 and FY26) but not the area or units sold, nor realisation per square foot (DRHP p.167). The increase therefore cannot be split into volume and price. Margins moved with the timing of cost recognition: cost of construction was 70.02% of total income in FY24, 53.68% in FY25 and 61.69% in FY26 (DRHP p.302).

06Earnings quality

The gap between profit and cash is inventory: in FY26 work-in-progress took ₹5,052.96 lakh and other current assets ₹969.30 lakh, and taxes paid were ₹1,123.86 lakh (DRHP p.309). The company explains that cost is carried in work-in-progress and charged to profit only in proportion to revenue recognised (DRHP p.309). Most of the interest cost does not pass through the profit and loss account in the year: ₹1,034.12 lakh of ₹1,259.05 lakh in FY26, 82.1%, was capitalised (our arithmetic, DRHP p.305). The document says bookings have been cancelled and revenue reversed in some projects, without amounts (DRHP p.42).

07The balance sheet

At March 2026 borrowings were ₹11,524.75 lakh: ₹6,132.83 lakh secured and ₹5,391.92 lakh unsecured, 46.79% of the total (DRHP p.312, DRHP p.33). The unsecured loans are ₹5,389.99 lakh from other parties and ₹1.93 lakh from a related party, and may be recalled at any time (DRHP p.312, DRHP p.33). Secured lenders include SMFG India Home Finance, Aditya Birla Finance, Kotak Mahindra Bank and Axis Finance, at 8.50% to 13.50%; unsecured loans from other parties carry 7.5% to 12.00% (DRHP p.312). Some facilities are guaranteed by the promoter director (DRHP p.313). Cash was ₹680.54 lakh (DRHP p.67).

The main assets are work-in-progress of ₹18,203.93 lakh, non-current investments of ₹2,461.59 lakh and property, plant and equipment of ₹1,787.08 lakh (DRHP p.67). Short-term loans and advances to others fell from ₹2,876.23 lakh to ₹246.13 lakh in FY26 (DRHP p.263). Contract liabilities were ₹3,431.77 lakh and project advances, deposits and retention money ₹2,787.83 lakh (DRHP p.266). The company is co-borrower on, or guarantor of, some borrowings of subsidiaries and an associate (DRHP p.34). There are no capital commitments (DRHP p.310). Debt to equity was 1.61 at March 2026 (DRHP p.115).

After the issue: the issue amount is blank, so the balance sheet after the fresh issue cannot be worked out. No object of the issue is the repayment of borrowings, and no part of the proceeds is to repay loans from promoters, directors or related parties (DRHP p.97, DRHP p.107).

08What the money is for

Source: DRHP p.99, DRHP p.100; shares our arithmetic.

The three projects cost ₹29,923.09 lakh in all; ₹6,239.78 lakh had been spent by August 31, 2026, ₹16,477.65 lakh is to come from the issue and ₹7,205.66 lakh from internal accruals, all in FY27 (DRHP p.107, DRHP p.98). Of the Boulevard money, ₹5,788.61 lakh is for civil works quoted by Reet Enterprises, ₹4,519.00 lakh for municipal premiums, transferable development rights and additional FSI, and ₹1,327.37 lakh for members' alternate accommodation (DRHP p.102, DRHP p.103).

Horizon's share goes to approvals and additional FSI, ₹2,589.00 lakh, and members' rent, ₹96.76 lakh (DRHP p.100). The form of investment in the subsidiaries, debt or capital, is not settled (DRHP p.99). The estimates are certified by an independent chartered engineer and not appraised by any bank (DRHP p.99).

Future projects and general corporate purposes may each take up to 25% of gross proceeds and together up to 35%; no future project has been identified (DRHP p.97, DRHP p.108). A monitoring agency is to be appointed before the red herring prospectus (DRHP p.110). The company may place shares before the IPO for up to 20% of the issue size, which would reduce the issue (DRHP p.64, DRHP p.65).

Into the business the whole issue: up to 60,00,000 new shares, amount not stated (DRHP p.1). The named object needs ₹16,477.65 lakh (DRHP p.97). To selling shareholders nothing: the offer for sale is "Not Applicable" (DRHP p.1).

09Who is selling

No one. The issue is entirely new shares, and the offer for sale is marked "Not Applicable" (DRHP p.1). The promoters and promoter group hold 1,44,99,998 of 1,45,00,000 shares, 99.99%, and none of them sells (DRHP p.93).

10Promoters

The promoters are Prithviraj Sankalchand Sanghvi, 60, and Pakshal Prithviraj Sanghvi, 36 (DRHP p.231). Prithviraj Sankalchand Sanghvi is described as a founder promoter with no formal degree, and ceased to be a director of the company on October 1, 2024 (DRHP p.231, DRHP p.220). Pakshal Prithviraj Sanghvi, chairman and managing director, holds an architecture degree from NMIMS (2012) and an MSc from Manchester Business School (2014) (DRHP p.217).

The promoter group table names Prithviraj Sankalchand Sanghvi as the father, and Shankesh Prithviraj Sanghvi as the brother, of Pakshal Prithviraj Sanghvi; the document states that Pakshal Prithviraj Sanghvi is the spouse of Poonam Pakshal Sanghvi, a non-executive director (DRHP p.234, DRHP p.217).

Pay: Pakshal Prithviraj Sanghvi was paid ₹36.00 lakh in FY24 and ₹77.40 lakh in FY26, and may be paid up to ₹1.5 crore a year from April 7, 2026 (DRHP p.71, DRHP p.218). Prithviraj Sanghvi was paid ₹75.60 lakh of professional fees in FY26, none earlier (DRHP p.71). Shankesh Prithviraj Sanghvi, promoter group, was paid ₹59.40 lakh in FY26 (DRHP p.71).

Group entities: the promoter group lists 48 entities, many of them property businesses (DRHP p.234, DRHP p.235). The group companies are Suparshwa Healthcare Private Limited and Sapphire Clubotel Private Limited, both lenders to the company until FY26 (DRHP p.237, DRHP p.71). The document says some group companies are in similar businesses (DRHP p.44).

Litigation: the summary table counts 5 criminal, 2 tax and 1 civil proceeding against the promoters (DRHP p.43). Prithviraj Sankalchand Sanghvi is named in the five criminal complaints, each alongside Sanghvi Premises Private Limited, and in the civil suit (DRHP p.322 to DRHP p.324); see section 23. No promoter shares are pledged (DRHP p.87).

Promoter economics: the average cost of acquisition is ₹2.78 a share for Prithviraj Sankalchand Sanghvi and ₹1.43 for Pakshal Prithviraj Sanghvi (AP p.7). Both came in at ₹10 at or after incorporation and subscribed at ₹500 a share in private placements in March 2018; every holding then rose 58-fold in the 57-for-1 bonus of March 16, 2023 and doubled in the 1-for-1 bonus of February 28, 2026 (DRHP p.86). Pakshal Prithviraj Sanghvi received 40,23,749 shares by gift from Shankesh Prithviraj Sanghvi on May 1, 2026 (DRHP p.86).

11Who already owns it

The company had 7 shareholders (DRHP p.91). If all 60,00,000 new shares are issued, there would be 2,05,00,000 shares (our arithmetic, DRHP p.64).

Source: DRHP p.92, DRHP p.93; the after column is our arithmetic. The promoters' 91.25% would become 64.5%, and promoter and promoter group together 70.7% (our arithmetic, DRHP p.85, DRHP p.64). The only outside holder is Suhas Mehta, with 2 shares received by gift and bonus (DRHP p.93, DRHP p.86). There is no investor fund, employee option scheme or convertible instrument (DRHP p.85, DRHP p.95).

12What changed just before the IPO

• The company became a public company by a resolution of May 23, 2023, with a fresh certificate dated June 16, 2023 (DRHP p.74).
• A 57-for-1 bonus on March 16, 2023 and a 1-for-1 bonus on February 28, 2026 took the share count from 1,25,000 to 1,45,00,000; the last cash allotment was at ₹500 a share in April 2018 (DRHP p.83, DRHP p.84).
• Shares moved within the family by gift in February and May 2026; Shankesh Prithviraj Sanghvi gifted 40,23,749 shares and was reclassified from promoter to promoter group on May 1, 2026 (DRHP p.90, DRHP p.232).
• Shankesh Prithviraj Sanghvi resigned as whole-time director and chief financial officer on May 1, 2026; Dipti Bhushan Dorugade became CFO on June 25, 2026; the company secretary joined on April 23, 2026 and Poonam Pakshal Sanghvi joined the board on July 15, 2026 (DRHP p.220, DRHP p.221).
• Promoter pay rose: Pakshal Prithviraj Sanghvi's from ₹36.00 lakh in FY24 to ₹77.40 lakh in FY26, and Prithviraj Sanghvi's ₹75.60 lakh of professional fees began in FY26 (DRHP p.71).
• Related-party loans of ₹1,127.84 lakh from Sapphire Clubotel and Suparshwa Healthcare were repaid in FY26 (DRHP p.72).
• Two subsidiaries were acquired in FY26, Gazdar Homesmith LLP and Vaibhav Builders, and SanghviP Aadinath LLP in FY27; goodwill of ₹87.87 lakh arose in FY26 (DRHP p.204, DRHP p.67).
• There was no change of statutory auditor in the last three years (DRHP p.76).
• The IPO was approved by the board on August 10, 2026 and by shareholders on August 12, 2026 (DRHP p.65).

13Capacity and expansion

The company does not manufacture; its capacity is its project pipeline. The three projects the issue funds:

Source: DRHP p.100, DRHP p.102, DRHP p.105.

At March 31, 2026, 434 of the 547 units for sale in ongoing projects, 79.3%, were unsold, and 56 units in completed projects (our arithmetic, DRHP p.30). All 149 Boulevard units and all 107 units of Sanghvi Era at Dharavi were unsold; Sanghvi Era has a commencement certificate but no RERA registration and was 0.00% complete (DRHP p.30, DRHP p.180). The document dates the Sapphire commencement certificate January 12, 2024, ten months before its development agreement of November 12, 2024, without explaining the order (DRHP p.99). The 15 upcoming projects, 16,54,567 sq. ft. of saleable area, have no commencement certificate (DRHP p.183, DRHP p.286).

14Market size and industry structure

As claimed: the industry chapter comes from a CareEdge Research report dated September 28, 2026, commissioned and paid for by the company (DRHP p.165, DRHP p.283). It says Mumbai sold 97,237 homes in CY25, up 1.0%, and that between 2020 and Q1 2026 the Western Suburbs accounted for 717 of 1,015 society redevelopment deals (DRHP p.142, DRHP p.157). The chapter also reproduces third-party expectations, which this study does not repeat.

The part that is addressable: redevelopment of housing societies in Mumbai's western and central suburbs, south-central Mumbai and Thane. The report does not size this in rupees.

What the company is today: ₹10,183.86 lakh of FY26 revenue (DRHP p.115). No market share is given. The document describes the industry as fragmented and competitive with limited entry barriers (DRHP p.187).

15Competitive position

Source: DRHP p.162, DRHP p.163, from the commissioned report. The company gives its presence in the region, redevelopment and rehabilitation experience, execution and management as its strengths (DRHP p.112). It lists four completed projects that received occupation certificates 14 to 20 months before their RERA completion dates (DRHP p.171). It does not hold exclusive rights to the "Sanghvi" name; two trademark applications of February 2025 are under objection (DRHP p.188).

16Peers the company named

Peers named in the offer document: Modi's Navnirman Limited, Arihant Superstructures Limited, Hubtown Limited, Sri Lotus Developers & Realty Ltd and Arkade Developers Limited (DRHP p.114).

Every named peer is larger by revenue: Modi's Navnirman about 1.9 times and Arkade about 8.0 times the company's FY26 revenue (our arithmetic, DRHP p.114). Their P/E ratios at closing prices of September 23, 2026 range from 16.62 (Hubtown) to 441.38 (Arkade), with an average of 109.83 (DRHP p.113). The Arkade figure rests on EPS of ₹0.29 (DRHP p.114). No P/E is possible for the company until a price band is set. Hubtown and Arihant work partly outside Mumbai, in Gujarat and Jodhpur (DRHP p.161).

17Risks, in plain words

Cash and debt: operating cash flow was negative in all three years (DRHP p.69) → construction is funded by borrowing and customer advances until flats are handed over → borrowings were ₹11,524.75 lakh at March 2026, 3.21 times EBITDA (DRHP p.115).

Unsecured lenders: 46.79% of borrowings are unsecured loans that may be recalled at any time (DRHP p.33) → a recall would have to be met from cash or new loans → cash was ₹680.54 lakh against ₹5,391.92 lakh of unsecured loans (DRHP p.67, DRHP p.33).

Unsold stock: 434 of 547 units for sale in ongoing projects were unsold at March 2026 (DRHP p.30) → revenue depends on selling them on time → Sanghvi Boulevard, the largest use of the proceeds, had sold none (DRHP p.30).

Shared project entities: the largest object, ₹11,634.98 lakh, goes to SanghviP Builders LLP, in which the company holds 50% and Pradnyesh Shivji Karia 50% (DRHP p.99, DRHP p.209) → profits of partnerships and LLPs reach the company only as partners agree (DRHP p.31) → minority partners took 19.26% of FY26 profit (DRHP p.307).

Geography and redevelopment: every project is in the Mumbai region and Thane, and 28 of 31 need society consent and vacant possession before building (DRHP p.284, DRHP p.286) → one reluctant occupant can delay a whole project → Boulevard's RERA completion date is December 31, 2032 (DRHP p.102).

Issue-specific: the objects are not appraised, the investment form in the subsidiaries is not decided, and up to 35% of gross proceeds may go to unidentified projects and general purposes (DRHP p.110, DRHP p.99, DRHP p.97).

18Litigation and regulatory matters

The amounts above are claims made against the company or the promoter, not findings. There are no actions by regulators against the company, promoters or directors, and no SEBI action against the promoters in five years (DRHP p.321, DRHP p.324). The criminal complaints concern a Kalyan land deal with a ₹700.00 lakh deposit, a society conveyance, a contractor's claim of ₹294.20 lakh, a Santacruz tenancy dispute and a dishonoured refund cheque (DRHP p.322 to DRHP p.324). Dues to four material creditors were ₹128.48 lakh (DRHP p.327).

19Related-party transactions

Source: DRHP p.71, DRHP p.72. In FY25 the company bought immovable property from Atlanta Properties, a promoter group partnership firm, for ₹159.80 lakh (DRHP p.71, DRHP p.234). Loans and advances to the associate Suparshwa Homes Private Limited stood at ₹294.12 lakh in March 2026 (DRHP p.73). Unsecured loans from related parties fell from ₹1,129.58 lakh to ₹1.93 lakh in FY26 (DRHP p.73). The professional fees and the promoters' capital introduction of ₹48.13 lakh appear for the first time in FY26 (DRHP p.72).

20What the offer document does not say

The issue amount, price band and lot are blank. Area sold, units sold and realisation per square foot are not disclosed, so revenue cannot be split into volume and price. The amount of revenue reversed on cancelled bookings is not given (DRHP p.42). The emphasis of matter in the underlying audit reports is mentioned but not reproduced (DRHP p.248). The document does not say which project reached which stage to produce FY26 revenue.

The commissioned report's peer profile says the company has undertaken 23 projects in Mumbai, 11 under development, against 31 projects in the business chapter, and the difference is not reconciled (DRHP p.160, DRHP p.165). The Sapphire commencement certificate date precedes its development agreement, as printed (DRHP p.99). Why Prithviraj Sanghvi is paid professional fees after leaving the board is not explained.

21Five questions for management

1. How many units and square feet were sold in FY25 and FY26, and at what average price per square foot?
2. How much revenue was reversed for cancelled bookings in each of the three years?
3. Will the ₹11,634.98 lakh for Sanghvi Boulevard go in as capital or as a loan, and how will the 50% partner in SanghviP Builders LLP share the cost and the profit?
4. Who are the lenders behind ₹5,389.99 lakh of unsecured loans from other parties, and on what repayment terms?
5. What do the emphasis of matter and other matters in the FY26 and FY25 audit reports say?

2Sources and cited facts

This study was read from 2 documents the company filed. The 107 figures it cites are listed under the document each came from, with the page and the sentence as printed.