Sanghvi Housing IPO

Easy to miss in the prospectus

• PAT margin is deliberately left blank in this record. The DRHP's KPI 'PAT Margin' of 25.79% for FY26 (27.53% in FY25, 12.14% in FY24) divides total restated profit of ₹2,626.36 lakh, which includes non-controlling interests, by revenue from operations. This record's patCr instead holds the owners' share, ₹2,120.54 lakh in FY26, so the DRHP's margin would not reconcile with the profit shown beside it.
• Net worth here is the DRHP's 'Net worth, as restated', which excludes non-controlling interest: ₹1,763.46 lakh, ₹3,748.27 lakh and ₹5,865.89 lakh for FY24, FY25 and FY26. Total equity including non-controlling interest was larger, at ₹7,157.14 lakh at FY26, of which ₹1,291.25 lakh was non-controlling interest. RoNW of 36.15% and NAV of ₹40.45 are on the narrower owners' basis.
• The debt to equity ratio of 1.61 times is the DRHP's KPI and capitalisation-statement figure. It divides total borrowings of ₹11,524.75 lakh by total equity of ₹7,157.14 lakh including non-controlling interest, not by the owners' net worth used in the financials table. The DRHP prints three different values for 31 March 2025: 2.30 in the KPI table, 1.84 in Note 39 and 2.36 in Note 39.1.
• Return on capital employed is also printed two ways. The KPI table gives 20.25% for FY26, on closing total equity (including non-controlling interest) plus total debt. Note 39 of the restated statements gives 25.83%, on average total equity plus total debt. The KPI 'Return on Equity' of 36.70% likewise uses total profit over total equity, unlike RoNW.
• At 31 March 2026 the restated balance sheet shows non-current borrowings of ₹8,699.69 lakh and current borrowings of ₹2,825.06 lakh, for total borrowings of ₹11,524.75 lakh. Unsecured term loans from other parties made up ₹2,606.64 lakh of the non-current portion.
• Most interest never reaches the profit and loss line. Borrowing costs of ₹1,034.12 lakh were capitalised into projects in FY26 (₹666.93 lakh in FY25), against finance costs of ₹224.93 lakh charged to profit and loss. EBITDA therefore excludes only the expensed part, and capitalised interest returns later through cost of construction.
• The DRHP's EBITDA is computed from restated profit before tax including the share of profit of associates, ₹473.49 lakh in FY26. EBITDA, and the 35.22% margin, therefore include profits of entities that are not consolidated line by line.
• Two owners' profit figures appear for FY26. The restated profit and loss statement shows profit attributable to owners of ₹2,120.54 lakh and total comprehensive income attributable to owners of ₹2,117.62 lakh. The accounting-ratios table under Other Financial Information labels ₹2,117.62 lakh as profit after tax attributable to owners. This record uses ₹2,120.54 lakh, the figure the RoNW of 36.15% is consistent with.
• Per-share history is distorted by bonus issues: 57 for 1 in March 2023 and 1 for 1 on 28 February 2026, which took the share count from 72,50,000 to 1,45,00,000. NAV was ₹51.70 at FY25 on the old count and ₹40.45 at FY26 on the new one, and the EPS series is adjusted to 1,45,00,000 weighted shares. The certified weighted average cost of acquisition for promoter and promoter group shares acquired in the last one year, 18 months and three years is NIL.
• The promoter family's arrangements changed shortly before filing. On 1 May 2026, Shankesh Prithviraj Sanghvi gifted 40,23,749 shares to Pakshal Prithviraj Sanghvi, resigned as whole-time director and was reclassified from promoter to promoter group; he now holds one share. Prithviraj Sankalchand Sanghvi ceased as a director on 1 October 2024 but received ₹75.60 lakh of professional fees in FY26. Director remuneration payable to Shankesh Prithviraj Sanghvi stood at ₹112.83 lakh at 31 March 2026.
• Customer money is part of the funding. Other non-current liabilities of ₹6,219.60 lakh at FY26 comprise contract liabilities of ₹3,431.77 lakh and project advances, deposits and retention money of ₹2,787.83 lakh. Under RERA, a prescribed share of collections must be held in a separate project account and withdrawn only in proportion to certified completion.
• Note 29 reports no material contingent liabilities. Risk factor 12, however, states that the company is a co-borrower on, or guarantor of, borrowings of its subsidiaries and an associate, and the promoters have personally guaranteed company loans. One construction-finance facility from SMFG India Home Finance, with ₹2,971.00 lakh outstanding, bars further debt at the borrower and requires prepayment if any unit sells below a stipulated minimum price.
• Some subsidiaries carry their own issues. Vaibhav Builders & Contractors Private Limited lost ₹7.65 lakh in FY26 and had negative reserves of ₹14.27 lakh. For SanghviP Aadinath LLP, acquired in FY2026-27, the DRHP notes that the signed partnership deed had yet to be received at its date.
• The objects table dates Sanghvi Sapphire's development agreement to 12 November 2024 and its commencement certificate to 12 January 2024, earlier than the agreement. The ongoing-projects table gives the same commencement certificate date.
• The 'Sanghvi' name is not exclusive to the company. Two trademark applications filed on 20 February 2025 stood objected as of 31 August 2026, and the DRHP carries a risk factor on third parties using similar or identical names.
• Peer P/E multiples in the DRHP are based on closing prices on 23 September 2026 and run from 16.62 times (Hubtown) to 441.38 times (Arkade Developers). The arithmetic average of 109.83 times is driven by Arkade's EPS of ₹0.29.
• The company may raise up to 20% of the issue size in a pre-IPO placement before filing the red herring prospectus, and any amount so raised reduces the issue.
• Industry data in the DRHP, including the market context for redevelopment in the MMR, comes from a CareEdge Research report that the company commissioned and paid for in connection with the issue.