DOLPHIN - Dolphin Offshore

📊 NSE: DOLPHIN 🏢 Oil Drilling / Allied Services 📅 Last Updated: 12/13/2025 21:39

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment: Offshore Support Services. Revenue from operations grew by 130% YoY, increasing from INR 6.47 Cr in FY 2023-24 to INR 14.88 Cr in FY 2024-25, driven by the refurbishment and deployment of key assets.

Geographic Revenue Split

While specific percentage splits are not disclosed, the company operates globally with a presence in India, Thailand, Mexico, Malaysia, Indonesia, and several African countries. A new subsidiary, Beluga International DMCC, was incorporated in Dubai in January 2024 to expand Middle Eastern operations.

Profitability Margins

Net Profit Margin (NPM) was recorded at 19.13% in Q1 FY24, a significant recovery from -31.34% in FY18. Operating Profit Margin (OPM) showed extreme volatility, reaching 123.77% in Q1 FY24 compared to -4.63% in FY18, reflecting the high-operating-leverage nature of vessel chartering.

EBITDA Margin

Operating Profit Margin was 18.19% in Q3 FY19 and improved to 123.77% in Q1 FY24. Core profitability is highly sensitive to vessel utilization rates; for instance, the Prabha Barge generates USD 30,000 per day net of opex.

Capital Expenditure

The company has planned a major capital investment of approximately INR 500 Cr over the next 12 to 15 months. This will be used to acquire two DSVs/PSVs and two Anchor Handling Tug Supply (AHTS) vessels to capitalize on rising offshore demand.

Credit Rating & Borrowing

CRISIL Ratings has withdrawn its ratings on DOEIL's bank facilities following the company's request and full repayment of dues. Previously, the group faced credit stress with ratings at 'CRISIL D' (Issuer Not Cooperating). Future borrowing for the INR 500 Cr expansion will be a mix of debt and equity.

⚙️ Operational Drivers

Raw Materials

The business is service-oriented; primary 'raw' inputs are specialized vessels (DSVs, PSVs, AHTS), fuel (MGO), and specialized diving gases (Helium/Oxygen) for saturation diving. Vessel refurbishment costs are a major expense category.

Import Sources

Vessels are typically sourced or chartered globally; refurbishment activities were recently conducted in Indian shipyards. Specialized diving equipment and gases are often imported from global maritime hubs.

Key Suppliers

Not specifically named, but the company interacts with global shipyards for refurbishment and international vessel brokers for acquisitions.

Capacity Expansion

Current capacity includes the refurbished Prabha Barge (on a 3-year contract) and one AHTS vessel. Planned expansion includes adding 4 new vessels (2 DSVs/PSVs and 2 AHTS) within 15 months to meet the 130% growth in service demand.

Raw Material Costs

Not disclosed as a percentage of revenue, but the company notes that high capital costs for building and maintaining offshore vessels are a primary financial risk.

Manufacturing Efficiency

Efficiency is measured by vessel utilization and day rates. The Prabha Barge has achieved 100% utilization under its new 3-year contract.

Logistics & Distribution

Not applicable as services are provided on-site at offshore oil fields.

📈 Strategic Growth

Expected Growth Rate

130%

Growth Strategy

Growth will be achieved through a strategic INR 500 Cr fleet expansion (4 new vessels), leveraging the 45-year brand reputation to secure long-term charters like the current 3-year Prabha Barge contract, and expanding the Dubai-based ship chartering business via Beluga International DMCC.

Products & Services

Integrated offshore services including air/mixed gas/saturation diving, underwater construction, vessel management, ship repairs, and barge chartering for the oil and gas industry.

Brand Portfolio

Dolphin Offshore Enterprises (India) Limited, Beluga International DMCC.

New Products/Services

Resumption of specialized diving and underwater construction services; new ship chartering services via the Dubai subsidiary expected to contribute significantly to future revenue.

Market Expansion

Targeting global oil and gas hubs with a focus on the Middle East (via Dubai) and existing markets in SE Asia and Africa.

Strategic Alliances

The company was acquired by Deep Onshore Services Private Limited (DOSPL), a subsidiary of Deep Industries Limited, providing strategic financial backing and operational synergies.

🌍 External Factors

Industry Trends

The industry is seeing a rise in demand for offshore support vessels due to renewed oil and gas exploration and offshore renewable energy projects. The company is positioning itself as a global integrated service provider to capture this 130% growth trend.

Competitive Landscape

Competes with global offshore service providers; competitive advantage stems from refurbished assets and the strategic backing of Deep Industries.

Competitive Moat

The moat is based on 45 years of specialized expertise in high-risk saturation diving and underwater engineering, which has high entry barriers due to safety requirements and capital intensity (INR 500 Cr for fleet).

Macro Economic Sensitivity

Highly sensitive to global oil prices and energy demand; economic downturns lead to reduced investment in offshore projects.

Consumer Behavior

Shift toward integrated 'turnkey' project requirements from oil majors rather than standalone vessel charters.

Geopolitical Risks

Operations in diverse regions like Africa and SE Asia expose the company to regional regulatory shifts and trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI (LODR) Regulations 2015, Merchant Shipping Acts, and international maritime safety standards for diving and vessel operations.

Environmental Compliance

The company must comply with stringent maritime environmental protection standards and safety regulations for high-risk offshore operations.

Taxation Policy Impact

Standard corporate tax rates apply; the company operates through Mauritius and Dubai subsidiaries which may offer fiscal efficiencies for international chartering.

⚠️ Risk Analysis

Key Uncertainties

Volatility in oil prices (High impact), liquidity risks associated with high capital expenditure (INR 500 Cr), and potential technological obsolescence of older vessels.