💰 Financial Performance

Revenue Growth by Segment

Revenue from offshore support operations decreased by 16.48% YoY, falling from INR 39.21 Cr in FY24 to INR 32.75 Cr in FY25.

Geographic Revenue Split

The company has shifted its focus from international waters to predominantly Indian operations, with its current fleet operating entirely in India as of late 2025.

Profitability Margins

The company reported a Profit Before Tax of INR 3.73 Cr in FY25, a significant 90.59% decrease from INR 39.65 Cr in FY24, which was heavily inflated by a one-time gain of INR 46.88 Cr from deconsolidation. Excluding exceptional items, the operating loss narrowed from INR 14.21 Cr to INR 9.29 Cr.

EBITDA Margin

Core operating profitability improved as Fleet Operating Expenses were reduced by 41.83% YoY to INR 15.20 Cr, though the company still faced an operating loss before exceptional items of INR 9.29 Cr.

Capital Expenditure

The company recently acquired a 2006-built 80 Tons BP DP2 vessel (M.V. Mahanadi) for which it took a debt of INR 36.40 Cr.

Credit Rating & Borrowing

Total debt stood at INR 52.46 Cr as of June 2025, which includes INR 36.40 Cr for the new vessel acquisition. Finance costs decreased by 67.87% YoY to INR 1.93 Cr following a comprehensive debt restructuring.

⚙️ Operational Drivers

Raw Materials

Not a manufacturing entity; primary operational costs are Fleet Operating Expenses (46.4% of revenue) and Employee Benefits (11.6% of revenue).

Import Sources

Not applicable as the company provides offshore services; however, vessels operate in Indian territorial waters.

Key Suppliers

Not disclosed, but primary costs involve vessel maintenance, fuel, and crewing services.

Capacity Expansion

Current fleet consists of 2 vessels (M.V. Kamet and M.V. Mahananda) with 1 additional vessel (M.V. Mahanadi) acquired and scheduled to commence contract in September 2025.

Raw Material Costs

Fleet operating expenses decreased by 41.83% to INR 15.20 Cr in FY25, down from INR 26.12 Cr in FY24, reflecting a leaner operational structure post-restructuring.

Manufacturing Efficiency

Vessel utilization is the key metric; M.V. Kamet and M.V. Mahananda are on active contracts, with M.V. Mahanadi starting in Q3 FY26.

Logistics & Distribution

Not applicable; revenue is generated via time charter arrangements where the vessel is the service delivery point.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

The company is transitioning back to growth by acquiring new assets like the 80-ton BP DP2 vessel and securing long-term (up to 5 years) term contracts to guarantee liquidity and positive EBITDA. It is also exploring the renewable energy sector, specifically supporting offshore wind farms.

Products & Services

Time charter of Offshore Support Vessels (OSVs), specifically Anchor Handling Tug Supply Vessels (AHTSVs) and Platform Supply Vessels (PSVs).

Brand Portfolio

Global Offshore Services Limited (reverting to Garware Offshore Services Limited).

New Products/Services

Expansion into supporting offshore wind farms using existing OSV capabilities to diversify away from pure oil and gas exploration.

Market Expansion

Re-focusing on the Indian market after reducing international exposure; proposing a name change to reflect this domestic focus.

Market Share & Ranking

One of the oldest OSV companies in India with over 40 years of experience.

Strategic Alliances

Technical and commercial management is handled through Garware Offshore International Services Pte Ltd, Singapore.

🌍 External Factors

Industry Trends

The offshore industry is seeing a recovery with rig demand increasing and a shortage of new OSVs due to limited building in recent years; the industry is also pivoting toward renewable energy support.

Competitive Landscape

Competes with domestic and international OSV operators for contracts from E&P companies like ONGC and Vedanta.

Competitive Moat

Moat is built on a 40-year track record, deep relationships with PSUs like ONGC, and a fully restructured balance sheet with net debt under USD 2 million prior to new acquisitions.

Macro Economic Sensitivity

Highly sensitive to global oil prices and E&P (Exploration and Production) spending by major oil companies.

Consumer Behavior

Shift in E&P company preference toward vessels with higher technical specifications (DP2) and better safety records.

Geopolitical Risks

Trade barriers are minimal, but international operations were previously impacted by regional market dynamics in Brazil and the North Sea.

⚖️ Regulatory & Governance

Industry Regulations

Subject to maritime regulations and stringent offshore market standards (e.g., North Sea regulations).

Environmental Compliance

Compliance with HSSE (Health, Safety, Security, and Environment) standards is critical for North Sea and ONGC operations.

Taxation Policy Impact

The company operates under Indian corporate tax laws; deferred tax assets/liabilities are adjusted in the consolidated statements.

Legal Contingencies

A qualified opinion was issued regarding a loan payable to third parties amounting to INR 7.71 Cr (USD 901,921) due to lack of sufficient audit evidence.

⚠️ Risk Analysis

Key Uncertainties

The subsidiary Garware Offshore International Services Pte. Ltd. has a negative net worth of INR 9.35 Cr, casting doubt on its ability to continue as a going concern.

Geographic Concentration Risk

High concentration in India (100% of current fleet operations).

Third Party Dependencies

Dependency on E&P companies' capital expenditure budgets and tender timelines.

Technology Obsolescence Risk

Risk of older vessels (e.g., 2006 built) becoming less competitive against newer, more fuel-efficient DP3 vessels.

Credit & Counterparty Risk

Trade receivables write-back of INR 13.81 Cr in FY25 indicates past volatility in collections, though current clients are major reputable firms.